How Time of Use Rates Work with Solar?

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You might be interested in solar if you have had a good look at your utility bills. Let’s talk about solar and time-of-use rates.

What Are Time-Of-Use Rates?

Utility companies use TOU rates, or time-of-use, to set their prices. TOU rates are based on when you use electricity and what time it is. This distinction is important because homeowners need to pay attention not only to how much energy their house consumes but also to when it does.

The popularity of time-of-use billing is increasing. It is a way to encourage people to use their energy in more favorable times.

  • Power costs are lower during off-peak hours.
  • The power grid is under less pressure to meet its customers’ demands.
  • The demand for electricity is lower.

How Do Time-Of-Use Rates Work?

Your electricity provider will typically divide the hours into two categories if they use TOU rates. Off-peak hours have a lower demand and electricity costs are cheaper. On-peak hours are when the demand for electricity is higher and more expensive. The hours of off-peak and on-peak could vary between weekdays and weekends, as well as seasonally.

How Does Time of Use Rate Work With Solar?

Combining a solar battery backup and solar panels can make them even more affordable. Solar panels can be a great way for you to generate abundant clean electricity.

Solar panels capture sunlight best when it is high in the sky. Without a solar battery, your system might not be making the most of it. TOU rates are lower during the day when you are most likely not at home. Also, electricity pulled from the grid is less expensive than later in the day when you are at home. You can save your unused solar energy by having a solar battery. Evening TOU rates can be more expensive so it is probably cheaper to store solar energy.

This post was written by Daniel Massaad, owner and expert solar technician at Energy Solutions Direct! ESD is the top choice for the best solar companies in Colorado! Our licensed and certified contractors are masters of their craft; with years of experience servicing the great Tampa Bay area and beyond, the choice is simple.

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