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Yes, demand charges are calculated per month. When developing approaches such as this I've found it helpful to use the Custom Rates tool on the web site, then run a toy REopt analysis in the web app, then export the input for that toy to json. In this way a template for the new rate structure can be created easily, then modified programmatically later before sending 'real' input files to the API.

I think you could peek at this result:
https://reopt.nlr.gov/tool/results/a027cbb5-9c7e-4504-ac0f-4e41590649da

If the only demand charge is $1,000,000/kW for anything over 17 kW, REopt sizes PV+Battery such that import from grid never exceeds 17 kW. This is for a building that started out with a…

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