It's not charged on kWh at all. It's a demand charge, not a consumption charge.
I'm slipping on units. Somewhat.
Is there a maximum continuous kW level that avoids demand charges?
That is, a certain amount of kWh per 15 minutes, if that is the time window?
My ark welder might be very high kW, but only 30 seconds at a time laying a bead, then change the rod.
To be clear, I'm not defending the charges, just explaining how they work.
In my case I'm estimating I'd need to spend ~A$5.5-6k in extra inverter and battery capacity + sparky support in order to shave ~$500-600/year off the bill (a combination of peak shaving and reduced grid consumption). It's not that appealing frankly. I'd love to do it from a fun/hobby POV but not sure I can justify it.
10 year break even could be OK for PV and inverters, because they have long life.
I'd rather not do that for a battery that could wear out. Or a car that could get totaled after front-loading energy expenses by paying extra for an EV.
Speaking of PV, that's the ticket. For water heating, if that is your peak load, it could be fed PV direct, not touching AC lines so no need for "Sparky"
This past two years has been a bit wild with inflation killing us. Our home insurance quote went up to $18k (and accordingly I have changed what is insured). When we moved here 8 years ago it was ~$2k.
Ouch, that's ballpark what full medical coverage costs us.
Home insurance went up quickly from about $600 to $1500 (for 1000sf house with shake roof) after fires in another area. Different house 1600sf or so, asphalt shingle, is similar $1500.
California doesn't let insurance companies freely adjust premiums to match risk or losses, so they may have raised rates across the board rather than selectively where risks were high. Many have exited the market, not writing new policies.