3 ways even a downsized solar installation can cover 100% of your energy bill in a Time-of-Use electricity billing plan Time-of-Use Billing Plans The type of energy payment plans available to you can vary depending on your province. Time-of-Use (TOU) pricing is a plan type that incentivizes consumers to adjust their electricity usage to off-peak [...]

3 ways even a downsized solar installation can cover 100% of your
energy bill in a Time-of-Use electricity billing plan

Time-of-Use Billing Plans

The type of energy payment plans available to you can vary depending on your
province. Time-of-Use (TOU) pricing is a plan type that incentivizes consumers to adjust
their electricity usage to off-peak periods, reducing their energy bills and assisting in
balancing the overall demand on the grid. In Ontario, TOU rates are divided into three
distinct periods:

Off-Peak: This period is for when energy demand is at its lowest. It includes
overnight hours, weekends, and holidays. Energy is at its cheapest prices
during this period.
Mid-Peak: This period is when the demand for energy is moderate. This is
typically during the daytime and early evening on weekdays.
On-Peak: This period is when the demand for electricity is at its highest.
Energy is at the most expensive rates during the On-Peak hours. This usually
happens during the morning and early evening on weekdays.

The hours for each period can change based on the season (summer and winter
schedules) to reflect changes in demand for electricity.

Summer (May 1 to October 31)
? On-Peak: 7 AM – 11 AM and 5 PM – 7 PM
? Mid-Peak: 11 AM – 5 PM
? Off-Peak: 7 PM – 7 AM and all day weekends/holidays
during this period.
? Winter (November 1 to April 30)
? On-Peak: 7 AM – 11 AM and 5 PM – 7 PM
? Mid-Peak: 11 AM – 5 PM
? Off-Peak: 7 PM – 7 AM and all day weekends/holidays

How does this work with solar?
Solar power’s effectiveness is magnified for homeowners who are on Time-of-Use
(TOU) billing plans by reducing electricity costs and optimizing energy use. Here’s 3
ways solar power works within this framework to save money:

Peak Generation During Peak Rates:

Solar panels generate the most electricity during the daytime when the sun is
brightest. This coincides with the on-peak periods in many TOU plans
(especially during summer).
By having solar power, homeowners can avoid using expensive grid
electricity, directly reducing their energy costs.

Net Metering and Credits:

During peak sunlight hours, if the solar panels produce more electricity than
the home consumes, the excess energy is sent back to the grid. You also get
more credits than a fixed rate plan because you are selling your electricity to
the grid at the higher On-Peak rate.
This generates credits that can offset electricity usage during non-sunlight
hours (evenings/nights), when solar production is low and TOU rates may still
be high.

Battery Storage (Optional):

Homeowners can install battery storage systems to store excess solar
energy generated during the day.
This stored energy can be used during peak periods in the evening when
TOU rates are high and solar panels are not producing electricity.
Using stored solar energy during peak times further reduces the need for
expensive grid electricity.

This means that if you switch to a TOU billing system with solar, you save enormous
amounts of money on power and have a great chance of your entire energy bill being
covered. To break down how it works:

Your peak solar production will be early in the morning and midday when
energy is the most expensive, you won’t buy energy at this rate because your
solar panels produce it.
You sell the excess energy that you don’t use back to the grid at the high
rates and get credited by your power company.
Later in the day, when the sun goes down, you buy that energy back from the
grid at cheap Off-Peak rates. You’re buying energy at low prices (with credits)
and selling it back at high prices.
You’ll be building up credits to make sure your power bill is always covered.
In the winter part of the year, you’ll be able to fund your power bills off the
surplus of energy credits you built up in the summer.

Where do you start?

We mainly discussed TOU plans as it pertains to Ontario, but depending on your
provider it may be available in other provinces. Call and check to see if it’s offered in
your area.
If you already have solar, make sure to contact your power company and see if a TOU
plan is available. Often net-metering customers have historically been automatically
moved from the time-of-use rate to tiered or fixed rate plans after installing solar, in an
effort for the power company to save money.
If you plan on going solar, make sure to switch to a TOU plan once you get it installed if
you don’t use a lot of energy during the day.
This plan is especially effective if you are someone who is gone during the day at work
and use all your energy during Off-Peak hours once you get home. Even smaller solar
installations may be able to fund all your electricity with a TOU plan if you don’t use
much energy during peak hours.
If you are thinking of going solar, our Solar Specialists and Project Managers can
cleanly walk you through the steps of what is required in your province and make sure
you maximize the value of the rebates you get back. We’ll also get you started on the
vital first step of acquiring a tailor-made solar proposal for your personal energy needs
at home.