Explain My Electricity Bill
How Much Does Your Business Spend on Energy?
Take a step towards controlling energy costs by understanding how your electricity provider charges you for the energy your business needs.
A kilowatt (kW) is a measurement that defines the intensity of the electricity being used.
Kilowatt hours (kWh) are the result of Intensity multiplied by time, just think of this as a unit of energy.
For example, if you use ten 100-watt-intensity light bulbs for an hour, you would be charged for one kilowatt hour unit.
Time-Of-Use Rate Plans
Utilities don’t stop at just calculating your usage, most businesses are on time-of-use rate plans which determine the rate for each unit of energy used, by the time of day you use it.
Utilities use time of use to shift their customers’ operations to times with less overall demand on the grid like mornings and weekends.
Businesses struggle to keep in tune with ever changing time of use plans ultimately cause significantly higher electricity costs.
Demand charges are sneaky charges for electricity you technically do not use and depending on your energy profile, demand charges could make up over 50% of your bill!
As your utility provider monitors your energy usage, when you have short term spikes of intensity, even if for only a few minutes, they notice.
For the duration of that pay period, you will pay a portion of your bill based off that boosted rate. It doesn’t matter whether you use the electricity or not.
The utility company says, “if even for a minute your business displays a need for energy at such high-intensity again, we need to have those units stored on the grid ready for you, even when there’s a very high chance you won’t use it.”
Controlling Cost With Commercial Solar
Solar is uniquely suited to help demand on the grid, as events of high demand are typically when businesses are operating and the sun is shining, utilities access overproduction from existing solar systems. Utilities reward owners of solar systems that contribute during these events with credits at the value that the energy was produced.
This is called Net Energy Metering and these credits cover significant energy costs accrued when that solar system isn’t generating energy. Conveniently for utilities, solar systems across the grid help alleviate energy costs for everyone by offsetting this demand. However, changes are coming for this important program, learn more here: Net Energy Metering Explained.
California businesses have options for lowering their electricity bills. The most effective and widely accepted is commercial solar, sometimes paired with energy storage if applicable. Solar developers like Revel Energy offset their customers’ energy usage by an average of 60-80% depending on the project profile (typically usage versus square footage of roof space).
Click the link below that resembles your monthly electricity costs below for a table to show how your costs could increase.
Below are some examples of California businesses that lower their electricity bills with commercial solar.
Hokto Kinoko - San Marcos, CA
San Marcos, CA
2,960 Solar PV Modules
Annual Power Cons. (before):
Est. Power Savings (after):
60% Energy Savings
Grower and producer of mushroom superfoods in California, Hokto Kinoko utilizes a Revel Energy commercial solar and energy storage installation to reduce energy costs by approximately 60%. One of many California businesses lowering energy costs and raising net income.