Understanding Time-Of-Use Rates for Solar Customers, and Soon for Everyone
Chief Sales Officer
When you switch to solar with Southern California Edison, you are automatically switched to a Time-Of-Use plan. It's crucial that you work with an installer who understands how this will impact everything from projected savings to the actual placement of your solar panels.
When you go solar, Southern California Edison changes your rate structure to Time-Of-Use, or TOU. That means that instead of charging you for the electricity that you use monthly, Southern California Edison now measures when you use your electricity, and charges you a different amount based on the time of the day.
Basically, power used from 8am-2pm and evenings after 6pm are less expensive with the TOU-D-T rate, which has a peak of 12-6pm rather than 2-8pm. Right now, solar customers are switched to this rate structure when they add solar, but in 2019 and 2020, every customer will be shifted to it.
The timeframe for good pricing will change in March, so now is a good time to go solar, so you can lock in a favorable TOU rate for the first five years. You also need to check with an experienced installer like Renova, who understands all the rates and their impacts, and can do things like install a few panels on your west roof so you can generate electricity from solar for as long as possible each day.
With this new structure, you can help ensure your solar produces enough power for you at the right times with the right amount of credits by working to limit the amount of electricity you use during the most expensive times, like washing clothes and dishes at night, and charging your electric car or golf car overnight when rates are the cheapest. You can also do things like program your pool pump to work at night, instead of midday.
Why does the rate strucutre keep changing? The utilities are doing what they can to integrate solar into the grid, and working to create rates to their advantage, but solar will still save you good money on your electric bill, and those who add a battery can save even more.
As stated, you should explore solar now, so you can get installed before March 2019 and lock in favorable times for five years. With 100% offset of your electricity with a premium panel like SunPower, you will also be well positioned for any future rate structure changes.
Related Renova Energy Insights:
Understanding the Four Different Aspects of Solar Panels
Renova Energy is a full service solar power company providing solar panel installation, solar battery storage, and maintenance for new and existing solar power system. Learn more about how Renova can help you achieve clean sustainable energy independence.
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