Path-Q Solar
How do time-of-use electricity rates affect the value of using solar power directly?
Answer
Time-of-use rates can increase the value of direct solar use when solar production overlaps expensive periods. If expensive periods occur after sunset or solar output is low, the benefit of direct use is smaller and storage or load shifting may be relevant.
Key points
- The value depends on when electricity is consumed, not only how much is consumed.
- Using appliances during solar-production periods can avoid buying higher-priced electricity.
- Exports may receive a different credit from the price charged for imports.
What it depends on
- Time-of-use periods and prices
- Household load timing
- Solar production profile
- Export-credit rules
- Battery and load-shifting capability
Risks and trade-offs
- Changing rate periods can alter the value of direct consumption.
- A battery may improve timing value but introduces cost, losses, degradation, and complexity.
- A system sized for annual energy may not maximize savings under time-varying prices.
Information you may need
- Current tariff and time periods
- Interval household usage
- Estimated solar output by time of day and season
- Export compensation
- Potential flexible loads such as water heating or EV charging
Your next step
What to do next
Compare expected solar production and household consumption by tariff period, including separate values for self-consumption, imports, and exports.
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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.
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