View Full Version : TOU (Time Of Use) good deal or not with PG&E and solar panels?
phredo
08-23-2010, 09:29 PM
I just have had a grid-tie solar system installed and PG&E is about to connect me up with a new meter. I have to decide whether to use the TOU billing or not. "Time Of Use" charges (and gives you credit) at a higher rate for some times of day, e.g., daylight hours in the summertime, and a lower rate at others, e.g., winter nights, depending more or less, I guess, on supply and demand for electricity. There is at least one other factor involved in making the choice, besides how much juice you think you'll use and produce at what times of day, which is that PG&E apparently charges you a little extra per diem up front for the TOU service. (I say "apparently", because I don't quite understand how it all works.)
To me, it seems a no-brainer: I will be producing a lot of electricity during the summer daytime hours when the rates are highest, and using the most at night time and maybe some electric heat in the winter. But glancing at some web site discussions shows me that many people think it's not a good deal, and, in fact, the contractor who installed my system recommends against it, but so far hasn't wanted to take the time to explain his reasons to me. And it's a little difficult for me to follow the web sites, because PG&E has changed its plans several times over the years and some of the discussions may be out of date for current conditions.
So, I mostly explained the concept just so that general readers could have an idea what this post is about, but I'd really like to hear some info and opinions from people who have some experience and/or knowledge about it. Time is of the essence, because PG&E will be coming out at any moment to install the new meter, and once they do, I can only make a change in the service plan once in every 12 months!
logical1
08-19-2013, 11:29 PM
Hi
I have Time of Use metering. The last ten years it has saved us plenty. We put solar in four years ago and it is even better. Our bill has been about $5 per month, which is the minimum fee PGE charges for being connected to the grid, which gives us electricity at night. We have used PGE electricity every year and had a credit balance at the end of each year since getting solar. Unfortunately PGE does not give you the dollar balance left over unless you have produced more than what was used. Time of Use gives us a negative bill although we use more than we produce.
Your understanding of the basics is correct. What you need for a decision is analysis of your electrical usage.
The present rate schedule for time of use is from April 15 to October 15:
9:am to 1:pm is semi peak, about 14cents a kWh.
From 1:pm to 7:pm is peak, about 34 cents a kilowatt hour.
From 7pm to 9pm is semi peak, about 14 cents a kWh.
The rest of the day is off peak, about 12 cents a kWh.
Thus if you produce more than you use on weekdays from 1pm to 7pm you will get 2 to 3 hours of electricity for every hour after 7pm to 1pm the folowing day.
It is pretty simple; if you do not use air conditioning or do laundry in peak time on weekdays, you will save enough to allow a smaller solar system or cover more of your usage than the solar system was designed to cover.
From October 15 to April 15 is winter hours and only has off peak and semi peak so there is not a lot of variance in the charges as in the summer. Due to lower winter production, you will likely owe PGE during the winter and make up the difference in the summer. A properly designed solar system will leave you with no bill at the end of year "true up".
Of course you do have to pay the minimum fee monthly. The usage bill is paid on a yearly basis although you receive monthly statements.
Hope this helps with your choice.
Kane Hoffman
I just have had a grid-tie solar system installed and PG&E is about to connect me up with a new meter. I have to decide whether to use the TOU billing or not. "Time Of Use" charges (and gives you credit) at a higher rate for some times of day, e.g., daylight hours in the summertime, and a lower rate at others, e.g., winter nights, depending more or less, I guess, on supply and demand for electricity. There is at least one other factor involved in making the choice, besides how much juice you think you'll use and produce at what times of day, which is that PG&E apparently charges you a little extra per diem up front for the TOU service. (I say "apparently", because I don't quite understand how it all works.)
To me, it seems a no-brainer: I will be producing a lot of electricity during the summer daytime hours when the rates are highest, and using the most at night time and maybe some electric heat in the winter. But glancing at some web site discussions shows me that many people think it's not a good deal, and, in fact, the contractor who installed my system recommends against it, but so far hasn't wanted to take the time to explain his reasons to me. And it's a little difficult for me to follow the web sites, because PG&E has changed its plans several times over the years and some of the discussions may be out of date for current conditions.
So, I mostly explained the concept just so that general readers could have an idea what this post is about, but I'd really like to hear some info and opinions from people who have some experience and/or knowledge about it. Time is of the essence, because PG&E will be coming out at any moment to install the new meter, and once they do, I can only make a change in the service plan once in every 12 months!
phredo
08-20-2013, 06:20 PM
Ha! That post of mine you answered was from about 3 years ago! And now I agree for sure: TOU has given us much more kwh, since we don't use air conditioning and pay attention to when we do the laundry.
On another note, we just had to replace a failing propane water heater, and, too late, after we had installed a new one, I calculated that if we had instead installed an electric demand heater, that, even if we had to pay for the electricity for it, which we probably wouldn't, given our surplus kwh's, we would be paying only half of what the propane will cost us. And the installation would have been easy for us, because our heater area is only about three feet from our electric service panel. We also would have saved about $300 on the difference between the gas and electric heaters.
Oh, well. . .