{"id":103,"count":1,"description":"Time-of-Use Rates (TOU) were introduced by many electricity providers back in the early 2010s. However, over a decade later, most homeowners are still unaware of its significant impact on their monthly energy expenses.\u00a0<\/span>\r\n

What is TOU?<\/h2>\r\nTime-of-Use (TOU) rates are a dynamic electric rate schedule that adjusts prices based on the time of day and season, aiming to align with grid demands. This option is increasingly offered by utilities to homeowners, incentivising them to avoid higher rates during peak-demand weekdays by consuming more electricity during off-peak hours.\r\n\r\nFor example, in the summer TOU rate plan for Southern California Edison (SCE) shown below, the cost electricity increases from 36 to 71 cents per kWh between 5 pm and 8 pm on weekdays.\r\n\r\n\"TOU\r\n\r\nImage source<\/a>.<\/em><\/span>\r\n\r\nFor homeowners, time-of-use rates are a double-edged sword.\r\n\r\nOn one hand, they provide an opportunity to reduce your energy costs by shifting your electricity consumption. On the other, if they can cause your energy costs to increase if you are not willing or able to adapt to the rate schedule.\r\n\r\nFor example, if you work from home, it's easier to do laundry and charge your EV during off-peak hours in order to avoid peak pricing. However, if you are commuting and working between 8 am and 5 pm every day, avoiding peak pricing becomes more difficult.\r\n\r\nThere's also the issue of air conditioning -- which is largest electrical load in most households.\r\n\r\nBy 5 pm, most people are home from school and work and the summer sun has been beating down on all day. This is typically when homeowners fire up the AC. However, it's also when peak TOU rates kick in, making for a difficult decision between a comfortable house and a manageable utility bill.\r\n\r\nWith home solar, this decision becomes much easier, as you can confidently turn on the AC without worrying about a runaway utility bill.\r\n\r\n[pnpZip background=true border=true primary_color=\"#8b72d3\" content_texts=true utm_campaign=\"get_started_injectable\" utm_medium=\"tou rates\" upper_text= \"Compare quotes from multiple\" upper_text_span = \"trusted installers\" lower_text= \"See how much solar could lower your\" lower_text_span = \"energy costs\" get_started_text = \"Get started\"]\r\n

How do TOU rates work?<\/h2>\r\nSimply put, TOU rates work by charging different prices for electricity throughout the day, week, and season to align with demand.\r\n\r\nTOU rate plans may vary by region and utility company, some specific terminology will stay consistent. First, there is typically seperate TOU rate plans for summer and winter, with summer plans being markedly more expensive.<\/span>\r\n\r\nPlans are often divided into the following pricing segments:<\/span>\r\n