If you’re an IID customer, you’ve probably already noticed your electric bill creeping up, especially with a recent $0.08/kWh rate increase and another Time-of-Use (TOU) pricing model about to roll out. Even if you already have solar, TOU could still mean higher bills unless you’re prepared.
Let’s break it down.
What is Time-of-Use (TOU)?
TOU is a billing structure that charges you different rates depending on what time of day you use electricity. When demand is high, usually late afternoon through evening, you’ll pay more per kilowatt-hour. When demand is low, rates drop.
It sounds simple, but in reality, it can make your bill more expensive, especially if you’re not able to shift when you use energy.
IID says TOU is “opt-in”, for now
IID has confirmed that TOU is rolling out this summer, starting as an optional plan. But here’s the catch: Southern California Edison did the same thing, and today, TOU is mandatory for nearly all residential customers. There is a strong chance that IID will follow the same path.
And once it’s in place, the cost impact could be big. Between the recent rate hike and the upcoming TOU structure, summer bills could be 80% higher than they were last year for some IID customers.
What does this mean if you have solar?
If your system doesn’t include battery storage, TOU could hit harder than you expect. But why?
- Solar panels produce power during the day, but peak rates hit in the late afternoon and evening, when your panels are winding down.
- That means you’ll likely be pulling energy from the grid right when it’s most expensive.
So even if your solar system is offsetting a good chunk of your usage, you could still end up paying more under TOU unless you’re storing energy to use later.
What if you’re thinking about going solar?
TOU doesn’t make solar less valuable, it just makes it more strategic.
Installing solar alone will definitely help cut down your usage from the grid during the day. But pairing solar with a battery (like a Tesla Powerwall or a Franklin battery) allows you to store extra energy and use it when it matters most: during those expensive peak hours.
That’s how you stay ahead of TOU, rising rates, and any surprises the utility might have down the line.
If you’re ready to get your own solar and battery solution, reach out to us to get started!
