What Is Peak Shaving?

Peak shaving means cutting a site's highest, briefest spikes in electricity demand, usually by discharging a battery to cover part of the load during those moments, so the grid connection sees a lower, flatter peak than the site actually draws.

Why Peaks Matter More Than Average Load

Electricity bills and grid connection sizing are often driven by the single highest demand period in a billing cycle, not the average. A site that runs at low demand most of the time but spikes hard for twenty minutes a day can still be billed, and sized, as if that spike were constant. Peak shaving targets exactly that mismatch.

How It Works

A battery energy storage system monitors site demand and discharges automatically when demand approaches a defined threshold, covering the difference so the grid supply itself never has to deliver the full peak. Once the spike passes, the battery recharges during quieter periods, ready for the next one.

Where EV Charging Fits In

EV charging is one of the peakiest loads a site can add, long idle periods punctuated by short, high-power draws exactly when vehicles plug in. Peak shaving lets a site support that charging pattern without a grid connection sized for its absolute worst-case moment, which is often the difference between fitting inside an existing supply and needing an upgrade.

Neutron's Approach

Our Energy Storage Systems are designed to shave demand peaks automatically alongside energy arbitrage and EV charging support, all from the same battery asset.

Is peak shaving the same as load balancing?

They solve a similar problem differently. Load balancing reduces peaks by throttling flexible loads like EV chargers. Peak shaving reduces peaks by discharging a battery to cover part of the demand, without needing to slow anything down. Many sites use both together.

How much can peak shaving save on electricity bills?

It depends on the site's demand charge structure and how peaky its load is, but sites with EV charging or other spiky loads often see meaningful reductions in their demand-based charges, since those charges are typically set by the single highest half-hour of demand in a billing period.