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<DIV><FONT size=2 face=Arial>Hello Peter,</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>I have seen 40% to 70% monthly demand charge
reduction for some southern California PV projects for some months, but it is
still a crap shoot. 15 minutes and 1 second of clouds during the peak demand
period will trump a client's energy management efforts unless
they are willing and able to shed loads during cloudy periods. I tell
clients that they cannot rely on the weather to cooperate, to monitor and
control their demand, and to think of any PV savings on their monthly
demand charge as a windfall.</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>Joel Davidson</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; PADDING-LEFT: 5px; PADDING-RIGHT: 0px; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px">
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=peter.parrish@calsolareng.com
href="mailto:peter.parrish@calsolareng.com">Peter Parrish</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
title=re-wrenches@lists.re-wrenches.org
href="mailto:re-wrenches@lists.re-wrenches.org">'RE-wrenches'</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Thursday, March 18, 2010 9:38
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> [RE-wrenches] Demand Charge
Reduction by PV</DIV>
<DIV><BR></DIV>
<DIV class=Section1>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">I failed to clean up
the subject line on this post a few minutes ago. Please respond to this post
so that we can keep track of the topic properly.</SPAN></FONT><FONT size=2
face=Arial><SPAN
style="FONT-FAMILY: Arial; FONT-SIZE: 10pt"><o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">Esteemed
wrenches,<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">I have been wrestling
with this concept about as long as we have been in business. How to estimate
how much a <SPAN class=SpellE>pv</SPAN> system will reduce the demand charge
for a customer.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">I know the “worst
case” goes as follows: <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt"><o:p> </o:p></SPAN></FONT></P>
<P
style="TEXT-INDENT: -0.25in; MARGIN-LEFT: 0.5in; tab-stops: list .5in; mso-list: l3 level1 lfo5"
class=MsoNormal><![if !supportLists]><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-fareast-font-family: Arial"><SPAN
style="mso-list: Ignore">(1)<FONT size=1 face="Times New Roman"><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><FONT color=navy size=2
face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">Demand is based on
measuring the consumption every 15 minutes and keeping track of those numbers
for the entire billing period.<o:p></o:p></SPAN></FONT></P>
<P
style="TEXT-INDENT: -0.25in; MARGIN-LEFT: 0.5in; tab-stops: list .5in; mso-list: l3 level1 lfo5"
class=MsoNormal><![if !supportLists]><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-fareast-font-family: Arial"><SPAN
style="mso-list: Ignore">(2)<FONT size=1 face="Times New Roman"><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><FONT color=navy size=2
face=Arial><SPAN style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">The
customer gets socked with a demand charge that is based on the highest 15
minute consumption for the entire billing period.<o:p></o:p></SPAN></FONT></P>
<P
style="TEXT-INDENT: -0.25in; MARGIN-LEFT: 0.5in; tab-stops: list .5in; mso-list: l3 level1 lfo5"
class=MsoNormal><![if !supportLists]><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-fareast-font-family: Arial"><SPAN
style="mso-list: Ignore">(3)<FONT size=1 face="Times New Roman"><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><FONT color=navy size=2
face=Arial><SPAN style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">The
customer also gets soaked with a “facilities charge” that is equal to the
greatest monthly demand number for the trailing 12
months.<o:p></o:p></SPAN></FONT></P>
<P
style="TEXT-INDENT: -0.25in; MARGIN-LEFT: 0.5in; tab-stops: list .5in; mso-list: l3 level1 lfo5"
class=MsoNormal><![if !supportLists]><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-fareast-font-family: Arial"><SPAN
style="mso-list: Ignore">(4)<FONT size=1 face="Times New Roman"><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><FONT color=navy size=2
face=Arial><SPAN style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">Now
you have a solar system pumping out <SPAN class=SpellE>Wac</SPAN> varying over
the familiar bell-shaped curve during the day.<o:p></o:p></SPAN></FONT></P>
<P
style="TEXT-INDENT: -0.25in; MARGIN-LEFT: 0.5in; tab-stops: list .5in; mso-list: l3 level1 lfo5"
class=MsoNormal><![if !supportLists]><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-fareast-font-family: Arial"><SPAN
style="mso-list: Ignore">(5)<FONT size=1 face="Times New Roman"><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><FONT color=navy size=2
face=Arial><SPAN style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">In
the southwest US, peak demand typically occurs early in the afternoon in the
summer, during the week. Our LADWP has a mantra that goes something like this,
“Peak demand occurs at 3pm PDT on the third Thursday in August!” I believe
them.<o:p></o:p></SPAN></FONT></P>
<P
style="TEXT-INDENT: -0.25in; MARGIN-LEFT: 0.5in; tab-stops: list .5in; mso-list: l3 level1 lfo5"
class=MsoNormal><![if !supportLists]><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-fareast-font-family: Arial"><SPAN
style="mso-list: Ignore">(6)<FONT size=1 face="Times New Roman"><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><FONT color=navy size=2
face=Arial><SPAN style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">So
one would expect something like 40% of the peak <SPAN class=SpellE>Wac</SPAN>
to offset the peak demand, but what happened if the sun goes behind a cloud
for those 15 minutes? Answer, “Bad luck. Your demand is back to what it was
before you bought your solar system.<o:p></o:p></SPAN></FONT></P>
<P
style="TEXT-INDENT: -0.25in; MARGIN-LEFT: 0.5in; tab-stops: list .5in; mso-list: l3 level1 lfo5"
class=MsoNormal><![if !supportLists]><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-fareast-font-family: Arial"><SPAN
style="mso-list: Ignore">(7)<FONT size=1 face="Times New Roman"><SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></FONT></SPAN></SPAN></FONT><![endif]><FONT color=navy size=2
face=Arial><SPAN style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">It
is actually worse than that. Peak demand recurs with approximately with the
same value with some regularity for an extended period of time, so the sun
will have to shine with full intensity every day when peak demand is expected
to occur, which in LA could be every day (M-F) of the 30 day billing
period.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">I have always taken
the position that we can’t guarantee that any of the demand charge will be
reduced with a solar system. But what do other PV integrators tell there
customers? Better yet is there any actual data on demand reduction with PV
systems? It seems to me that occasionally the monthly peak demand will in fact
be shaved by PV production, the question is how often in
practice?<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt">I once thought of
taking actual insolation data and comparing it with actual demand data and
doing a <st1:place w:st="on">Monte Carlo</st1:place> simulation (throwing the
dice = randomly matching up demand data with solar production data) – but I
haven’t retired yet.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt"><o:p> </o:p></SPAN></FONT></P>
<DIV>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-no-proof: yes"><!--[if gte vml 1]><v:shape
id="_x0000_s1026" style='position:absolute;margin-left:0;margin-top:0;width:50pt;
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<v:stroke joinstyle="miter" />
<v:formulas/>
<v:path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect" />
<o:lock v:ext="edit" aspectratio="t" selection="t" />
</v:shape><![endif]-->I would love to hear what others are doing about
this.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-no-proof: yes"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT color=navy size=2 face=Arial><SPAN
style="FONT-FAMILY: Arial; COLOR: navy; FONT-SIZE: 10pt; mso-no-proof: yes">-
Peter<o:p></o:p></SPAN></FONT></P>
<P><FONT color=navy size=2 face=Arial><SPAN
style="FONT-SIZE: 10pt; mso-bidi-font-family: Arial; mso-no-proof: yes">Peter
T. Parrish, Ph.D., President<BR><st1:place w:st="on"><st1:State
w:st="on">California</st1:State></st1:place> Solar Engineering,
Inc.<BR><st1:address w:st="on"><st1:Street w:st="on">820 Cynthia
Ave.</st1:Street>, <st1:City w:st="on">Los Angeles</st1:City>, <st1:State
w:st="on">CA</st1:State> <st1:PostalCode
w:st="on">90065</st1:PostalCode></st1:address><BR>CA Lic. 854779, NABCEP Cert.
031806-26<BR><A
href="mailto:peter.parrish@calsolareng.com">peter.parrish@calsolareng.com</A><SPAN
style="mso-spacerun: yes"> </SPAN><BR>Ph 323-258-8883, <st1:place
w:st="on"><st1:City w:st="on">Mobile</st1:City></st1:place> 323-839-6108, Fax
323-258-8885<SPAN
style="mso-spacerun: yes">
</SPAN><SPAN
style="mso-spacerun: yes"> </SPAN><o:p></o:p></SPAN></FONT></P>
<P><FONT color=navy size=2 face=Arial><SPAN
style="FONT-SIZE: 10pt; mso-bidi-font-family: Arial; mso-no-proof: yes"> </SPAN></FONT><FONT
color=black><SPAN
style="COLOR: windowtext; mso-bidi-font-family: Arial"><o:p></o:p></SPAN></FONT></P></DIV></DIV>
<P>
<HR>
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