Distributed Energy Resources and Demand Based (3-part) Tariffs
A “tariff” is a schedule of fees that you pay your electric utility to buy your power. Demand Based Tariffs are the result of how the energy companies produce and buy power to supply you. During peak periods, they need to buy power from outside sources or generate more power at a premium cost.
Demand based tariffs are important to understand because all the major Arizona utilities have them. While you can still choose to stay on a traditional tariff, demand tariffs allow you to leverage major savings and are the future of Arizona energy.
Demand tariffs charge customers in 3 parts: a monthly service fee, a usage fee (kWh) and a demand charge (kW). The demand charge is a measure of your maximum instantaneous draw, or the most power you ever use all at once during on-peak. Older, traditional residential tariffs only have a monthly service fee and a usage fee. The key to saving money with Demand Based tariffs is to reduce high grid energy use during peak hours which are typically late afternoon to early evening (3-8PM). By implementing an appropriate Distributed Energy Resource (DER) solution(link to DER page), you can leverage these tariffs to save significant money now and future proof your investment.
Southface Solar and Electric is a pioneer, innovator and leader in DER solutions. It has been designing and deploying on and off grid solar plus battery storage solutions for over 10 years.
We believe by using advanced technology in a simple way we can give people a choice in Energy Independence. This ideal permeates throughout all aspects of SouthFace Solar & Electric. Through this Mantra we give you, the consumer, the Choice of Power … the power to claim your Energy Independence! Tired of waiting to do laundry or not running air conditioning due to high On-Peak utility rates? We can help. At SouthFace Solar & Electric we have helped thousands of people like you achieve this reality. Let us know how we can help you!