Peak Demand Management: Shave Industrial Demand Charges & TOD Tariffs

Peak Demand Management:Shave Industrial Demand Charges & TOD Tariffs

Reviewed: August 2026

      

Industrial electricity bills in Maharashtra comprise two substantial cost components: variable energy charges (per kWh) and fixed maximum demand charges (per kVA). Momentary manufacturing spikes—such as starting heavy induction motors, induction furnaces, or chillers—can trigger severe utility peak demand penalties for the entire billing month. By synchronizing high-output solar generation with energy storage, Chirayu Power enables factories to flatten their demand curves and shave high Time-of-Day (TOD) tariff peaks.

20-40%
Demand Charge Savings
₹2.50/u
TOD Peak Surcharge Avoided
0.98+
Power Factor Optimization
Real-Time
Microgrid kVA Shaving
100% Peace
Zero kVA Overdraw Penalties

  

Industrial solar plant lowering daytime peak demand
SOLAR LOAD COINCIDENCE

Aligning manufacturing shifts with solar generation bell curves.

Optimizing factory production schedules and equipment staging so that energy-intensive processes operate during peak solar generation hours (10:00 AM to 3:00 PM), automatically suppressing utility grid kVA draw.

BEST SUITED FOR

Fabrication, textile weaving, plastics, and batch processing facilities with flexible machinery scheduling.

01 — COINCIDENCE

Solar generation directly absorbs high machinery spikes

02 — LOWER KVA

Prevents monthly billing meter from registering peak draw

03 — ZERO COST

Pure software and scheduling optimization with zero added hardware

    

Peak demand charges often constitute 20% to 30% of total industrial power costs. Shaving these charges unlocks rapid incremental returns.

01DEMAND BILLING

Shrink Contract Demand Charges

Fixed utility demand charges are billed on the highest 15-minute kVA reading in the month. Shaving that reading permanently reduces monthly overhead.

02TOD SAVINGS

Avoid Peak Time-of-Day Surcharges

MSEDCL levies surcharges of ₹1.50 to ₹2.50 per unit during peak evening hours (18:00 - 22:00). Battery integration eliminates this penalty.

03EXPANSION HEADROOM

Free Up Substation Capacity

Shaving facility peak load creates electrical headroom, allowing you to add new manufacturing lines without expensive utility substation upgrades.

Billing ParameterWithout Demand ManagementWith Solar Peak ShavingWith Solar + BESS Hybrid
Billing kVA BasisRecorded peak demand spikeLowered by daytime solar outputCapped strictly at custom setpoint
kVA Overdraw PenaltiesHigh penalty rates applySubstantially reducedCompletely eliminated (0% penalty)
Time-of-Day (TOD) PenaltyFull TOD surcharge payableMorning TOD peaks displacedBoth morning & evening peaks shaved
Power Factor (PF)Risk of lagging PF penaltiesManaged via inverter controlMaintained at 0.98+ with rebates
Annual Demand Cost Savings0% (Standard utility bill)12% - 20% demand reduction30% - 45% total demand & TOD savings

Frequently Asked Questions

In a solar rooftop system, solar panels are installed on the roof of any residential, commercial, institutional, or industrial building. This can be of three primary types: (i) Grid Connected Solar Rooftop System (without battery storage), (ii) Solar Rooftop System with battery storage facility (Off-Grid), and (iii) Hybrid Solar Rooftop System (Grid Connected along with Battery Storage backup).
Showing 1–6 of 83 questions
…
Have more technical or commercial questions?Browse Complete FAQ Knowledge Center