Battery

Time of Use Rates: Transforming Solar Energy for Homeowners

solar panels on a San Diego roof

Estimated Read Time: 5 Minutes

If you have solar but don’t have a battery, a recent utility rate change could make your solar system less valuable than it used to be.

Beginning May 1, the new 10:00 AM–2:00 PM Super Off-Peak pricing window became available year-round, making midday electricity the cheapest time of the day. The change reflects a grid that’s now flooded with solar power during daylight hours. While that may sound positive, it creates a new challenge for solar-only homeowners.

Why?

Because those same hours are when most residential solar systems generate the majority of their electricity.

Your Solar Produces the Most Energy When It’s Worth the Least

For years, homeowners installed solar to reduce how much electricity they purchased from the grid. But under the new pricing structure, the hours when solar panels produce the most energy are now the lowest-value hours on the rate schedule.

That means many homeowners are:

  • Exporting excess solar energy during the cheapest part of the day
  • Receiving lower-value credits for that energy
  • Buying electricity back later in the evening when rates are higher

In simple terms:

You’re selling low and buying high.

The more energy your system exports between 10 AM and 2 PM, the more likely you are to feel the impact of this new pricing structure.

Why This Matters to Solar Homeowners

Most households don’t use the majority of their electricity in the middle of the day.

Instead, energy usage typically spikes:

  • After work
  • During dinner hours
  • When air conditioning is still running
  • When lights, appliances, TVs, and electronics are turned on

Unfortunately, that’s also when solar production begins to disappear.

Without a battery, many homeowners are forced to purchase grid electricity during the most expensive periods of the day—even after generating plenty of solar energy just a few hours earlier.

For some households, this could mean:

  • Higher monthly bills
  • Less value from exported solar energy
  • Larger annual True-Up balances
  • Reduced return from their solar investment

Why This Change Happened

The new Super Off-Peak period is a direct result of California’s solar success.

Utilities have so much solar energy available during the middle of the day that they’re actively encouraging customers to use more electricity during those hours. In fact, the new pricing structure was specifically created to align lower rates with peak solar production on the grid.

But that creates an unintended consequence for homeowners who only have solar panels.

When the grid lowers the value of midday electricity, it also lowers the value of the time when solar systems are producing the most.

The Missing Piece: Battery Storage

A battery solves the biggest problem created by the new rate structure.

Instead of exporting all of your excess solar energy during the lowest-value hours, a battery stores it for later.

That stored energy can then be used:

  • During expensive evening hours
  • When your family is actually home
  • During peak demand periods
  • During power outages

Rather than selling energy to the grid when it’s worth the least and buying it back when it’s worth the most, a battery allows you to keep and use more of your own power.

Why Batteries Make More Sense Than Ever

A few years ago, homeowners often viewed batteries as a backup-power solution.

Today, they’re becoming an economic solution.

The new Super Off-Peak pricing structure has made timing more important than ever. Solar generation alone is no longer enough to maximize savings. Homeowners who can store solar energy and use it later are often in a stronger position to benefit from changing utility rate structures.

The reality is simple:

Solar helps generate power. Batteries help protect its value.

As electricity rates continue to evolve, homeowners are increasingly looking at battery storage as the next step in getting the most from their solar investment.

Has the New Super Off-Peak Window Changed How You Think About Solar?

The new 10 AM–2 PM pricing structure is changing the economics of solar and battery storage. We’d love to hear how these changes are affecting your home with our two minute survey.

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