Unlock the Advantages of Time-Of-Use Rates in California

by Anna Gretz
Home Battery

California's best, not-so-secret energy advantage: Time-Of-Use rates. Here's how to make them work for you.

Time-Of-Use rates are the biggest, best energy advantage you're not using... especially in California.

If you're never heard of Time-Of-Use (TOU) rates... it's definitely time to get clued in. There's a good chance your utility company uses TOU billing, and you might not even know it.

What are TOU rates?

Simply put, time-of-use rates are higher rates charged during the times that the most people need electricity (also known as peak demand hours.) These start ramping up during midday, and really hit highs during the afternoon and evening, when people are coming home, and switching on their lights and appliances. Typically, rates are also higher than the summer than the winter, because of the general increase in electricity usage.

Right now, all commercial, industrial, and agricultural customers in California are required to be on a time-of-use billing plan... but residential customers get to choose. TOU billing can completely sabotage your electricity bill... if you're using it wrong. If you use it to your advantage, however, you can really make it work for you, instead of against you. Here's how.

time-of-use

Team up with TOU... and a home battery.

When the 5PM hour rolls around, most people are ready to get stuff done... and they usually have to use electricity to do it. Charging devices, using entertainment systems, washing clothes or dishes... all of this requires electricity from the grid. This is why the evening makes up the peak demand hours... everyone wants electricity, and they want it now. For those on a TOU billing cycle, this isn't ideal... that is, if they're using energy from the grid.

But what if there was a way to use power during peak-demand hours... but to only pay low-demand prices?

Great news: There is.

Home batteries can store energy when the cost is the lowest, and the sun is highest in the sky. Storage panels and energy storage are made for this moment. When solar panels soak up energy from the sun, it's converted into power that is sent back into the grid and distributed to whoever needs it at the time. But if you have a home battery, you get to keep it, so you can use it when you need it. This is called time of use shifting, and it gets you the very lowest electricity rates possible.

But TOU shifting isn't the only advantage of having a home battery.

Home batteries also offer energy security in a time where the power grid is aging, and less reliable. Even when there's bad weather, or planned blackouts, your home can still count on having the energy it needs. Solar and storage are really a win-win-win... win?

Although solar is a fantastic choice for basically all Californian homeowners, grid-connected batteries owners can take advantage of time-of-use shifting, too, even if they don't have solar. Instead of storing clean, free energy from the sun, home batteries can store cheaper electricity from the grid during low-demand rates. They can use this lower-cost energy during the higher-cost peak demand hours and save money on their bills.

There's never been a better time to own your own energy.

If you're wondering if you qualify for some of the great incentives California has available for homeowners looking to upgrade their energy systems with a home battery, just ask<br> us. We'll do the work for you, and let you know if you qualify.