Peak Load Contribution (PLC) is your business’s share of energy use during the grid’s highest demand periods—usually the hottest summer days. These measurements determine your capacity charges for the next 12 months.
When PLC is not managed effectively, your energy costs can increase significantly. By strategically reducing consumption during critical periods, your business can lower costs and strengthen resilience.
The following three pillars of PLC management work together to create a comprehensive energy strategy that benefits your bottom line while supporting broader sustainability goals.
Lower capacity charges, which can represent 10–30% of your total electricity bill, by reducing usage during peak demand.
Strengthen your operations with energy storage and on-site generation that provide backup power and reduce reliance on the grid.
Support energy efficiency and renewable integration while cutting your environmental impact.
While storage requires upfront investment, the ROI is often compelling through long-term PLC reduction and enhanced resilience.
Charge battery systems when electricity is cheaper.
Draw from stored energy during high-demand periods.
Protect your facility against costly outages and disruptions.
Generate your own electricity to reduce grid reliance during peak times. On-site generation reduces your PLC while enhancing energy independence.
Harness clean, renewable energy from the sun to power your operations during peak demand periods.
Reliable, on-demand power generation that can quickly respond to peak demand situations.
Efficient systems that generate both electricity and useful thermal energy for your facility.
Improving your business’s overall energy efficiency can significantly reduce your PLC by lowering your baseline energy consumption. These improvements make it easier to manage your energy use during peak times, making PLC mitigation part of a broader energy strategy.
Reduce baseline energy consumption to make peak demand easier to manage. These efficiency measures create a foundation for successful PLC management by reducing your overall energy footprint.
Cut lighting energy use by up to 75%
Modern systems use 30–50% less energy
Improve insulation and air sealing for significant savings
Use energy-efficient machinery for optimal performance
Effective PLC management goes beyond bill savings—it improves resilience, reduces environmental impact, and ensures compliance with energy regulations.
