How Does Time-of-Use Pricing Affect Solar Savings?
Short answer: time-of-use pricing charges more for electricity during peak hours and less during off-peak hours, which can change how much your solar system saves you depending on when it produces power and whether you have battery storage to shift that production.
Quick answer: Under time-of-use pricing, the value of your solar production depends on when it happens relative to peak and off-peak windows. A battery can capture midday solar production and discharge it during expensive evening peak hours, which is often when time-of-use pricing has the biggest impact on overall savings.
Not all electricity is priced the same throughout the day, and understanding this distinction matters more once you’re generating your own power.
How time-of-use pricing typically works
| Period | Typical timing | Relative price |
|---|---|---|
| Peak | Afternoon into evening, when demand is highest | Highest |
| Off-peak | Overnight and early morning | Lowest |
| Mid-peak (where applicable) | Shoulder hours surrounding peak windows | In between |
Why this matters for solar specifically
- Solar production peaks midday. Most solar systems produce the most power in the late morning through early afternoon, which may not align with when electricity is most expensive.
- Evening peak hours are common. Many time-of-use structures price the early evening highest, right as solar production is declining for the day.
- Battery storage bridges the gap. Storing midday solar production and discharging it during the evening peak is one of the most direct ways to capture more value under a time-of-use structure.
- Net metering rules interact with this. How your utility credits exported solar power also affects the overall math, and those rules vary by provider.
What this means for your system design
If you’re on or considering a time-of-use rate plan, it’s worth factoring that into how your solar and battery system is sized and configured, rather than assuming a flat per-kWh savings figure. This is part of what we model during your evaluation, using your actual utility rate structure and usage data rather than generic assumptions.
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Frequently asked questions
What is time-of-use pricing?
Time-of-use pricing charges different rates for electricity depending on when it’s used, typically with higher rates during afternoon and evening peak demand hours and lower rates overnight or in off-peak periods.
Does time-of-use pricing make solar more or less valuable?
It depends on your usage pattern and system design. Solar production during expensive peak hours can be worth more, while a battery lets you store midday production and use it during costly evening peak periods.
Is every Florida utility customer on time-of-use pricing?
No. Time-of-use rate structures vary by utility, and not all customers are automatically enrolled, so it’s worth checking your specific rate plan rather than assuming a standard flat rate.
Does a battery help more under time-of-use pricing?
Often yes. A battery lets you shift solar production from lower-value hours to higher-value peak hours, which can meaningfully improve the economics of a system under a time-of-use structure.
How do I know if switching to time-of-use pricing makes sense for me?
This depends on your specific usage patterns, solar production profile, and whether you have battery storage, so it’s best evaluated as part of your system design rather than assumed.
Related guides
- How does net metering work in Florida?
- How does solar battery storage work?
- Home solar, battery and EV charging in Florida
- Solar systems
- Battery storage
- Florida solar by city
Figures on this page are typical industry averages for planning purposes and assume Florida’s 14.5¢/kWh average residential rate and 5.5 peak-sun hours per day. Your actual numbers will differ based on your utility, roof, and system — request a free evaluation for figures specific to your home.