Franklin from Carson City. Client undertook a major LED lighting retrofit expecting significant demand reduction. They reduced their connected lighting load by 35 percent. But their billing demand only dropped by about 8 percent. They are frustrated and feel the retrofit underperformed. What is likely happening?
Why demand charges keep increasing even after load reduction
Mike D from Raleigh. Lighting load rarely drives the demand peak on its own for commercial and industrial accounts. The peak is usually set by HVAC startup, production equipment startup, or another large coincident load. Reducing lighting load reduces energy consumption but may not affect the demand reading at all if the peak occurs at a time when lighting was not the dominant load.
So the retrofit did exactly what it was supposed to do but the client was sold incorrect expectations about the demand impact?
Walt. Very common. LED retrofit salespeople often emphasize total energy savings without being precise about demand versus consumption savings. The distinction matters enormously for clients whose bills are heavily demand-weighted.
Derek. Pull the 15-minute interval data and identify what was actually driving the monthly peak in each of the last 12 months. Show the client the pie chart of what set their demand. That makes the retrofit value clear while also identifying where actual demand savings can be found.
I did the interval analysis. The peak is consistently set by two air handlers that start simultaneously at 6 AM. Lighting contributes about 4 percent of that peak reading. The LED retrofit had almost no chance of moving the demand needle.
Mike D. Now you have found the real opportunity. Staggering those air handler starts by 20 minutes could cut the peak by 30 percent. That is a demand reduction strategy the lighting salesperson never identified.