Demand Management
for Melbourne Business
Demand charges quietly drive 30-70% of a mid-to-large commercial bill. Supply Solar analyses your actual tariff and load data, designs the right mix of battery storage and load strategy to cut your peak draw, and identifies demand response programs that can pay you for flexibility.
Free Demand Charge Analysis
Tariff review · Peak profile · Savings estimate
No obligation · We call within 2 business hours
What Is a Demand Charge — and Why Is It So Big?
Flat or simple time-of-use tariffs
Many small-to-medium businesses are still on these. They provide little financial incentive to manage peak demand, since price doesn't vary much with your actual peak draw.
Cost-reflective demand tariffs
More common for larger sites — an explicit demand charge component means your peak draw directly and significantly affects your bill. Roughly one in four businesses are on tariffs like this today.
Why it matters for your strategy
If demand charges are a big line item, a battery or load-shifting strategy pays for itself quickly. If you're on a flat tariff, the calculation looks different — Supply Solar checks this first.
Your bill or retail contract states your tariff structure. Supply Solar reviews your actual billing and interval data before recommending any demand management strategy — not a generic estimate.
What Are the Ways to Manage Demand?
Battery storage is one tool, not the only one. Most effective demand management combines two or more of these.
| Strategy | How it works | Capital required | Best suited to |
|---|---|---|---|
| Load shiftingScheduling | Run flexible equipment (chillers, pumps, batch processes) outside your facility's peak window | Low — often just scheduling changes | Sites with flexible, non-time-critical loads |
| Battery peak shavingStorage | Battery discharges during your peak window, reducing the amount drawn from the grid | Moderate to high — hardware investment | Sites with a clear, repeatable daily peak |
| CurtailmentLoad reduction | Temporarily reduce or pause specific equipment during genuine peak events | Low — mainly process/operational planning | Sites with some tolerance for brief output reduction |
| Solar + battery hybridGeneration + storage | Solar reduces daytime grid draw; battery captures excess and covers evening/other peaks | Higher — combined system | Sites with good roof space and daytime + evening loads |
Most large facilities get the best result from combining battery peak shaving with some load shifting — the battery covers what can't be moved, scheduling handles what can.
Demand Response Programs Worth Knowing About
Beyond cutting your own bill, businesses with curtailable load, batteries or on-site generation can earn additional revenue through formal demand response programs.
| Program | How it works | Typical eligibility | Frequency |
|---|---|---|---|
| RERT (Reliability & Emergency Reserve Trader) | AEMO's last-resort mechanism — paid a fixed rate per kWh of reduction during critical grid events | Curtailable load or on-site batteries/generators, any registered capacity | Rare — activated only during genuine reliability events |
| Market Demand Response | Retailer-run program paid on spot price share during grid stress periods | Typically >0.5MW curtailable load, or on-site batteries/gen-sets of any size | 2-10 events per year, evening peak, 2-4 hours each |
| Smaller flexible demand programs | Retailer products designed for sites without large curtailable loads — earn a fixed rate per kWh reduced | Businesses with any load that can be turned down or shifted for a few hours | 5-20 events per year, 2-6 hours each |
| FCAS (Frequency Control Ancillary Services) | Batteries respond in near-real-time to grid frequency fluctuations, earning ongoing revenue | Requires a suitable battery and aggregator/market participation | Continuous — dispatched as needed by the market |
Program terms, eligibility and rates vary by provider and change periodically — Supply Solar checks current program details as part of every demand management assessment.
What Good Demand Management Looks Like — Melbourne
A 500kW/2MWh battery is a common fit for a large warehouse or logistics centre — sized primarily for demand charge management, with load shifting and DR program participation layered on top.
Actual results vary by tariff structure, load profile and market conditions. Supply Solar models your specific site in every feasibility study.
Get My Free AnalysisSix Reasons It Makes Sense in 2026
Demand charges are the biggest single lever
For mid-to-large sites, demand charges can be 30-70% of the bill — often the single largest opportunity on the entire electricity account, bigger than any solar saving.
Some strategies cost nothing to start
Load shifting and equipment scheduling can begin with operational changes alone — no capital required before you decide whether a battery is worth adding.
Battery costs have fallen sharply
Large systems (100kWh+) now install at $180-300/kWh at scale — a very different economic case for peak shaving than a few years ago.
Demand response programs pay you to be flexible
RERT, Market Demand Response and smaller retailer programs mean a facility with curtailable load or a battery can earn revenue on top of bill savings.
You may already be eligible without knowing it
Around one in four Australian businesses are on cost-reflective tariffs with a real demand charge component — many haven't reviewed what that means for their bill.
Locks in predictable energy costs
Reducing exposure to volatile evening peak pricing and demand charge escalation gives your business a more predictable, controllable energy cost base.
How a Demand Management Assessment Works
Tariff & interval data review
We analyse your actual bill and interval electricity data to understand your tariff structure and real peak demand pattern — not assumptions.
Strategy comparison
You receive a proposal comparing load shifting, battery peak shaving and demand response program eligibility — with the trade-offs of each explained.
Recommended approach & sizing
If a battery or hybrid system is the right fit, we size it specifically for your peak profile — not a generic recommendation.
Implementation & DR enrolment
Our CEC-accredited team installs any hardware required, and we advise on enrolling in suitable demand response programs to add ongoing revenue.
Accredited, Award-Winning & Fully In-House
Tariff-first, not hardware-first
We start with your actual bill and tariff structure, not a battery brochure. If load shifting alone solves most of the problem, we'll tell you that.
2023 CEC Award & 2024 EUPD Award
Independent industry recognition of installation quality and customer experience — the benchmarks that matter for a large capital decision.
Every strategy quantified, not guessed
Demand charge, backup and DR program value are all itemised in your proposal — not a single vague "savings" figure.
CEC-accredited, compliance-first
Where hardware is the right answer, every installation is completed by our own accredited team, with compliance documentation handled properly.
Demand Management Near Your Facility
Supply Solar assesses and implements demand management strategies across greater Melbourne and regional Victoria.
What Melbourne Facilities Say
"Didn't even realise demand charges were on our bill until Supply Solar walked us through it. Turned out to be nearly half our electricity cost — the battery has made a real difference every summer since."
"Started with just rescheduling our chiller cycles — no capital outlay. Supply Solar suggested that before pushing us toward a battery, which I appreciated. We added storage later once the case was clear."
"We're now enrolled in a demand response program on top of our battery savings — didn't know that was even an option until Supply Solar mentioned it during the feasibility study."
Demand Management FAQs
What is a demand charge on a commercial electricity bill?
What is demand management and why does it matter?
What is the difference between peak shaving and load shifting?
What demand response programs can Victorian businesses join?
Do I need a battery to participate in demand response?
How do I know if I'm on a cost-reflective demand tariff?
How is a demand management system sized correctly?
Related Commercial Services
Commercial Battery Storage Pages
Other Commercial Services
Ready to Understand Your Demand Charges?
Book a free, no-obligation analysis. Supply Solar reviews your actual tariff and interval data, compares your options, and tells you honestly whether a battery, load shifting, or a demand response program makes the most sense.
No obligation · Tariff review & strategy comparison · CEC-accredited · Melbourne & Regional Victoria