Most utilities no longer charge a flat rate for electricity. They charge based on when you use it. If you have solar, understanding time-of-use (TOU) rates is the difference between saving $800/year and saving $1,400/year.
Thank you for reading this post, don’t forget to subscribe!What Are Time-of-Use Rates?
TOU pricing splits the day into periods — peak, off-peak, and sometimes super off-peak. Electricity costs 2–4x more during peak hours (typically 4–9 PM on weekdays). Your solar panels produce the most power midday — which is usually off-peak. So the timing mismatch matters.
Typical TOU Structure
| Period | Typical Hours | Typical Rate |
|---|---|---|
| Super Off-Peak | Midnight – 6 AM | $0.08–$0.12/kWh |
| Off-Peak | 6 AM – 4 PM | $0.18–$0.25/kWh |
| Peak | 4 PM – 9 PM | $0.35–$0.55/kWh |
How Solar Interacts With TOU
Your panels produce power from roughly 8 AM – 5 PM. Most of that falls in off-peak hours. Without storage, any excess goes back to the grid at off-peak rates via net metering — but you still buy peak power at 4–9 PM when your panels are winding down. That’s the gap.
How to Maximize Savings on TOU
Add a battery: Store your midday solar production and discharge it during peak hours (4–9 PM). This is the single biggest TOU optimization for solar homeowners.
Shift heavy loads: Run dishwasher, laundry, EV charging, and pool pumps during off-peak or super off-peak hours. A $30 smart plug or EV charging timer pays for itself in weeks.
Check your net metering rate: Some utilities credit your solar exports at peak rates if you export during peak hours. A east-facing panel setup can help you push production later into the afternoon.
Is TOU Good or Bad for Solar Owners?
It depends on your setup. Solar-only (no battery): TOU can actually hurt you if your utility credits exports at low rates. Solar + battery: TOU is a major advantage — you arbitrage the price difference every day. The math strongly favors adding storage if you’re on a TOU plan.
FAQ
Can I choose my rate plan? In most states, yes — you can opt into or out of TOU plans. Call your utility or check their website. Some plans require TOU if you install solar.
What’s the best TOU plan for solar? Look for plans that credit solar exports at the highest rate possible, ideally peak export credits. California’s NEM 3.0 heavily favors battery + solar over solar alone.