Free tool

Battery storage peak shaving calculator

Estimate the battery size, budget and simple payback for cutting demand charges at a commercial or industrial site. All numbers are editable assumptions — results are a first screen, not a quote.

Peak reduction target (kW)How much you want to cut from your monthly peak.Peak window length (hours)How long your demand stays near the peak.Demand charge ($/kW-month)From your utility bill's demand line.Installed cost ($/kWh)Assumption — replace with vendor quotes.Usable depth of discharge (0–1)Typical lithium systems: 0.85–0.95.Incentives / tax credit (%)Set to 0 if unsure; eligibility varies.

Estimate

Battery power: 250 kW
Nameplate energy: 556 kWh
Installed cost: $250,000
Cost after incentives: $250,000
Demand savings / year: $45,000
Simple payback: 5.6 years

Savings count demand charges only (kW reduced × charge × 12). Energy arbitrage, grid services and degradation are excluded.

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New to storage? Read grid-scale battery storage explained or the BESS procurement checklist.