How to read your electricity bill
Electricity bills for commercial customers can be complex and hard to understand. However, for a proper financial assessment, this data is essential. Your ISC (Independent Solar Consultant) can help you understand with this process.
The various charges are categorised into energy, network, environmental and other.
These charges relate mainly to the cost of supplied electricity and are charged per energy unit used (Kilowatt hours, kWh), at different times of the day. Electricity consumption during specific periods (peak, shoulder and off peak) are charged at different rates.
Depending on your distribution network service provider (DNSP) various capacity charges are also imposed. These are called ‘demand charges’ and relate to your maximum energy demand or peak consumption, during a defined period and vary by region.
In other words, you are charged for the maximum amount the network needs to provision for you.
A single large maximum demand event that occurs once a month can determine your capacity charge for the entire month or even year, depending on the details of your contract.
The potential for peak demand charge reduction is limited due to the complexity of factors involved. A solar only system could provide some reduction, but it is difficult to guarantee it. If your solar company does not mention this be careful.