In a nutshell, peak shaving is the process of reducing the amount of energy purchased from the utility company during peak hours when the charges are highest. Many businesses are paying for their electricity consumption on a time-of-use basis. Peak demand charges typically apply to electricity consumed from noon to 6:00 p.m. while lesser charges apply to the rest of the day. This rate trend mirrors demand, which typically peaks during these hours of the day. The great thing about solar electricity panels is that they produce most of their energy during these peak hours. Your business can offset their highest costing electricity with solar and only pay for the lower costing energy used during off peak times.