Time of Use (TOU) Rates + Mario Castillo Electric’s Solar Services = Lowered Electricity Costs

Jul 11, 2024 | Solar Energy

Understanding California’s Time-Of-Use (TOU) rates can significantly cut your electricity bill. But did you know you can maximize TOU rates with solar services from Mario Castillo Electric to significantly reduce your electricity costs?

TOU rates are designed to encourage energy use during off-peak hours when demand is lower and electricity is cheaper. By understanding this system, California homeowners can save money on their energy costs and adjust their usage habits. 

TOU and a residential solar system with solar panels can work together to complement TOU rates, allowing you to access energy stored in the solar panels and reduce reliance on the grid during peak TOU hours. Mario Castillo Electric offers solar panel options for homeowners in Long Beach, Cerritos, Torrance, Carson, San Pedro and the surrounding areas. Look to Mario Castillo Electric to help you reduce costs with solar energy services and provide convenience in accessing energy in TOU’s peak energy usage rates.

    What Exactly Are Time-of-Use (TOU) Rates?

    TOU rates are a dynamic pricing structure where electricity costs vary based on the time of day and the season. Utilities like Southern California Edison (SCE) use these rates to encourage energy use during off-peak hours when demand is lower. 

    For example, SCE's summer TOU rates increase from 36 cents per kWh to 71 cents per kWh between 5 PM and 8 PM on weekdays. This pricing strategy aims to reduce the strain on the electrical grid during peak hours.

    How TOU Rates Work

    Time-of-Use (TOU) rates vary electricity prices based on the time of day, week, and season to match cost with demand patterns. While TOU plans differ by region and utility provider, common terms include distinct rate plans for summer and winter, with generally higher rates in summer.

    Most plans categorize pricing into these segments:

    • Super off-peak
    • Off-peak
    • Peak
    • Super-peak

    Peak and super-peak periods usually occur when electricity usage spikes, such as in the evening when people return home to use air conditioning, cook, do laundry, play video games, and charge their devices.

    Off-peak hours, on the other hand, usually span from early morning to late afternoon. These can also include variations such as Mid-Peak or Super Off-Peak, but they all fall within similar time frames and have their own respective rates.

    How TOU Rates Affect Your Electricity Costs

    Depending on your energy consumption habits, TOU rates can either save you money or increase your bills. If you're willing to adjust your usage to off-peak hours, you can significantly reduce your costs. However, if you stick to high-consumption activities during peak hours, you might see a spike in your bills.

    For instance, if you work from home, it's easier to do laundry or charge your electric vehicle during off-peak hours. But if you're commuting and working from 8 AM to 5 PM, avoiding peak pricing can be challenging.

    Strategies to Save Money with TOU Rates

    Adjust Your Daily Routine

    By shifting energy-heavy tasks to off-peak hours, you can take full advantage of lower rates. For example:

    • Laundry: Wash and dry clothes early in the morning or late at night.
    • Dishwashing: Run the dishwasher after 8 PM.
    • Electric Vehicle Charging: Schedule EV charging for overnight hours.

    Utilize Solar Power

    Solar panels can complement TOU rates by providing a clean and affordable energy source. During peak hours, when electricity prices are highest, your solar panels can supply energy, reducing your reliance on the grid. Mario Castillo Electric offers critical services to support you in reducing rates. Our renewable energy solutions include solar energy consulting, assessment, customized solar panel and solar battery setups, and seamless installation. 

    Invest in Energy-Efficient Appliances

    Energy-efficient appliances consume less power and can help you save on electricity costs, especially when used during off-peak hours. Consider using timers to run appliances like dishwashers overnight or during other off-peak times. Look for ENERGY STAR-rated products, which are designed to be more efficient than standard models.

    The Role of Solar Panels in TOU Rates

    Solar panels can be a game-changer for homeowners on TOU rate plans. By generating your own electricity, you can reduce your dependence on the grid during peak hours. This not only cuts costs but also contributes to a more sustainable environment. 

    For example, during the high-demand summer months, solar panels can offset the need for grid energy during the hottest parts of the day. This allows you to use air conditioning without worrying about sky-high bills.

    Discover the power to transform your home and electrical bills with advanced solar services and solar panel solutions from Mario Castillo Electric. We are proud to offer a wave of renewable energy solutions in Long Beach, Torrance, Carson, Cerritos and the surrounding areas!

    Maximize Your Energy Savings

    Understanding and adapting to Time-of-Use rates in conjunction with solar services from Mario Castillo Electric can lead to significant savings on your electricity bill. By making small changes to your daily routine, investing in energy-efficient appliances, and considering solar power through Mario Castillo Electric, you can make the most of TOU rates.

    At Mario Castillo Electric, we're committed to helping you optimize your energy usage. Contact us to learn more about our solar energy consulting, assessment, customized solar panel and solar battery setups, and seamless renewable energy solutions installation. 

    Start saving and schedule today!

    Sign Up For Blog Updates

    Join the email list to receive updates and information.

    "*" indicates required fields