Maximum Demand
Demand is measured in kVA (apparent power) on most industrial tariffs. If your power factor is 0.7, a 100 kW motor draws 143 kVA. Correct to 0.95, and it draws 105 kVA. That 38 kVA reduction directly lowers your MD.
If utility demand charges exceed $15/kW, a standby generator may be economic. During the 15-minute window when MD would spike, switch critical loads to the generator. The utility sees a flat profile. maximum demand
[ \textDemand Cost = \textMD (kW or kVA) \times \textTariff Rate , ($/kW) ] Demand is measured in kVA (apparent power) on
The ratio between these two is known as the . For a typical home, the maximum demand might only be 60–70% of the total connected load. How Maximum Demand is Calculated maximum demand