Policy
Time-of-Use (TOU) pricing is an electricity rate structure in which the price per kilowatt-hour varies depending on the time of day (and sometimes day of week or season). Utilities charge higher rates during peak demand periods (e.g., late afternoon or early evening) and lower rates during off-peak times (like night or midday when demand is low). TOU pricing encourages consumers to shift usage to cheaper periods, flattening demand peaks. For solar energy users, TOU can be advantageous if their solar production aligns with high-rate periods, or if they have battery storage to offset usage during expensive peak times. From a grid perspective, TOU pricing is a tool to better match consumption with generation patterns, including when renewable energy like solar is abundant (midday) versus when it’s not (evening).