TOU Optimization Planner

Maximize savings with intelligent energy dispatch.

1. Household Load Profile

Hourly Consumption (kWh)

Enter 24 values representing consumption from Hour 0 to 23.

2. Solar Generation Profile

Hourly PV Output (kWh)

3. Battery System

Capacity (kWh)

Power (kW)

Efficiency (%)

4. Time-of-Use Tariff ($/kWh)

Peak

Shoulder

Off-Peak

Peak Hours (e.g., 16-21) Shoulder Hours (e.g., 7-16, 21-23)

Remaining hours are Off-Peak. Use 24-hour format.

Total Savings

$0.00

Bill Before

$0.00

Bill After

$0.00

Self-Consumption

Optimized Energy Dispatch

Hourly Data Breakdown

Hour	Load	Solar	Grid Import	Grid Export	Battery Charge	Battery Discharge	Battery SOC

Export & Reporting

Download the optimized hourly dispatch plan for your records or to configure smart devices.

Solar Time-of-Use (TOU) Optimization Planner: Master Your Energy Bills and Maximize Solar Savings in 2025

Cut your electricity bills by up to 70% with our Solar Time-of-Use Optimization Planner. Learn how TOU rates work, optimize battery storage, and maximize solar ROI in 2025.

Ever wondered why your electricity bill skyrockets even with solar panels on your roof? Here's the thing – it's not just about how much solar energy you generate. It's about when you use it.

Picture this: Sarah installed a 10kW solar system in California, expecting massive savings. But her first bill? Only 30% lower than before. Why? Because her solar panels produced peak energy at noon while she used most electricity from 4-9 PM when rates hit 74 cents per kWh.

Sound familiar? You're not alone. Millions of homeowners are missing out on potential savings because they don't understand Time-of-Use (TOU) rates and energy optimization.

But what if I told you there's a way to slash your electricity bills by up to 70% using smart energy management? Enter the Solar Time-of-Use Optimization Planner – your secret weapon against rising energy costs.

The average residential electricity rate increased 6.7% from June 2024 to June 2025, adding $13.50 to monthly bills. Don't let these rising costs catch you off guard. Let's dive into how TOU optimization can transform your energy strategy.

Table of Contents

What Are Time-of-Use (TOU) Rates and Why Should You Care?

Understanding the Three-Tier Pricing System

Time-of-Use rates aren't just utility company jargon – they're your roadmap to energy savings. TOU plans categorize the day into on-peak, off-peak, and super off-peak hours, with electricity rates highest during peak hours and lowest during super off-peak hours.

Think of it like airplane tickets or Uber pricing. During high-demand periods (typically 4-9 PM), electricity costs more. During low-demand times (late night and early morning), it's cheaper.

The TOU Rate Structure Breakdown

Peak Hours (4-9 PM):

Highest electricity rates ($0.45-$0.74 per kWh)
Maximum grid demand
Most expensive time to use power

Shoulder Hours (7 AM-4 PM, 9-11 PM):

Moderate electricity rates ($0.20-$0.35 per kWh)
Transitional demand periods
Balanced pricing structure

Off-Peak Hours (11 PM-7 AM):

Lowest electricity rates ($0.10-$0.20 per kWh)
Minimal grid demand
Best time for energy-intensive activities

Why TOU Rates Matter More Than Ever in 2025

Extracting meaningful cost savings from your solar investment involves more than simply generating power; it also demands an understanding of how utility rate structures can impact overall savings potential.

The reality? LIPA and PSEG LI plan to shift nearly all residential customers to TOU rates in 2025, with new customers automatically enrolled. This trend is spreading nationwide, making TOU optimization essential for every homeowner.

How Solar Generation Conflicts with Peak Demand Hours

The Solar-Demand Mismatch Problem

Here's where things get tricky. Your solar panels generate maximum power between 10 AM-2 PM when the sun is strongest. But you use most electricity between 5-9 PM when you're cooking dinner, running the AC, and everyone's home from work.

This timing mismatch creates two problems:

Excess solar during low-rate hours gets sold back to the grid at cheap rates
High energy usage during peak hours forces you to buy expensive grid electricity

Image Placement: After Real-World ExampleImage Prompt: "Generate a side-by-side bar chart comparing solar generation timeline (10 AM-2 PM peak) versus household energy consumption timeline (5-9 PM peak), highlighting the mismatch with different colored bars and clock icons."

Alt Text: "Solar generation vs household consumption timeline showing peak hour mismatch"

Enter the Solar Time-of-Use Optimization Planner

What Makes This Tool Revolutionary?

The Solar TOU Optimization Planner isn't just another calculator – it's your personal energy strategist. This intelligent tool analyzes your specific situation and creates a customized energy dispatch plan that maximizes your solar investment.

Key Features That Set It Apart

1. Advanced Battery Optimization Algorithm

Multi-pass optimization for maximum efficiency
Considers battery capacity, power limits, and efficiency
Prioritizes expensive hour coverage

2. Real-Time TOU Rate Integration

Customizable peak/shoulder/off-peak periods
Dynamic pricing adaptation
Regional utility rate compatibility

3. Comprehensive Energy Flow Analysis

Solar generation profiling
Load pattern optimization
Grid import/export calculations

4. Visual Dashboard & Reporting

Interactive charts and KPI tracking
Hourly data breakdown tables
CSV export for device configuration

How the Optimization Algorithm Works

The planner uses a sophisticated three-pass optimization strategy:

Pass 1: Solar Utilization

Direct solar-to-load matching
Excess solar charges battery
Remaining surplus exports to grid

Pass 2: Strategic Battery Discharge

Identifies highest-cost hours
Optimizes discharge timing
Preserves battery for maximum impact

Pass 3: Grid Import Minimization

Calculates final energy balance
Minimizes expensive peak-hour purchases
Maximizes cost-effective energy arbitrage

Step-by-Step Guide: Using the TOU Optimization Planner

Step 1: Input Your Household Load Profile

Start by entering your hourly energy consumption pattern. Don't have this data? Check your smart meter app or use these typical patterns:

Residential Load Profiles by Home Type:

Time Period	Small Home (kWh)	Medium Home (kWh)	Large Home (kWh)
12 AM - 6 AM	0.2-0.4	0.3-0.6	0.5-0.8
6 AM - 12 PM	0.6-1.2	0.8-1.8	1.2-2.5
12 PM - 6 PM	0.4-0.8	0.6-1.2	1.0-1.8
6 PM - 12 AM (Peak)	1.5-3.0	2.0-4.5	3.5-6.0

Step 2: Define Your Solar Generation Profile

Enter your hourly solar output. Your installer should provide this, or use online tools like PVWatts. Key factors affecting generation:

System size and orientation
Local weather patterns
Seasonal variations
Shading conditions

Step 3: Configure Battery System Parameters

Input your battery specifications:

Battery Capacity: Total energy storage (kWh)

Battery Power: Maximum charge/discharge rate (kW)

Round-Trip Efficiency: Typically 85-95% for lithium batteries

Popular battery configurations:

Battery Model	Capacity (kWh)	Power (kW)	Efficiency (%)	Warranty
Tesla Powerwall 2	13.5	5.0	90%	10 years
LG Chem RESU	9.8	5.0	95%	10 years
Enphase IQ Battery	10.1	3.84	89%	10 years
Sonnen EcoLinx	20.0	8.0	85%	10 years

Step 4: Set Up TOU Rate Structure

Configure your utility's specific TOU rates:

Peak Rate: Your highest electricity cost per kWh

Shoulder Rate: Mid-tier pricing

Off-Peak Rate: Lowest cost per kWh

Time Periods: When each rate applies

Common TOU Schedules by Region:

Utility/Region	Peak Hours	Shoulder Hours	Off-Peak Hours	Notes
SCE (California)	4-9 PM	6 AM-4 PM, 9-10 PM	10 PM-6 AM	Weekdays only
SDGE (San Diego)	4-9 PM	6 AM-4 PM, 9-10 PM	10 PM-6 AM	Seasonal variations
PG&E (California)	4-9 PM	3-4 PM, 9-10 PM	10 PM-3 PM	Summer schedule
Austin Energy	2-7 PM	7 AM-2 PM, 7-11 PM	11 PM-7 AM	Summer only
PSEG (New Jersey)	8 AM-10 PM	-	10 PM-8 AM	Simple 2-tier

Step 5: Run the Optimization and Analyze Results

Click "Optimize Now" and watch the magic happen. The tool will:

Calculate baseline costs without optimization
Generate optimal dispatch schedule for your battery
Show potential savings and energy flows
Provide detailed hourly breakdown for implementation

Maximizing Your Solar Savings: Advanced Strategies

Battery Sizing for Optimal TOU Performance

Don't just buy the biggest battery – buy the smartest battery configuration. The optimal size depends on:

Your Peak Hour Usage:

Analyze 4-9 PM consumption
Size battery to cover 80-100% of peak demand
Consider seasonal variations

Solar Excess Availability:

Calculate midday surplus generation
Ensure battery can store available excess
Balance storage vs. export economics

Load Shifting Strategies That Actually Work

Beyond battery optimization, smart appliance scheduling can dramatically improve your TOU performance:

High-Impact Load Shifting Opportunities:

1- Water Heater (25-30% of home energy use)

Heat during off-peak hours
Use timer controls or smart thermostats
Potential savings: $50-80/month

2- Pool Pumps (15-20% of summer usage)

Run during solar generation hours
Avoid peak evening operation
Potential savings: $30-50/month

3- Electric Vehicle Charging

Charge during off-peak hours
Use solar excess when available
Potential savings: $40-70/month

4- Dishwasher and Laundry

Schedule during shoulder/off-peak hours
Combine with solar generation timing
Potential savings: $15-25/month

Regional TOU Optimization Variations

TOU strategies vary significantly by location. Here's how to adapt:

California Residents:

Focus on 4-9 PM peak avoidance
Maximize midday solar self-consumption
Consider NEM 3.0 export rate impacts

Texas Homeowners:

Navigate varying TOU schedules by utility
Account for extreme summer peak periods
Leverage competitive retail market options

Northeast States:

Prepare for expanding TOU adoption
Consider seasonal rate variations
Plan for winter heating optimization

Infographic Placement: After Regional Variations

Infographic Prompt: "Create a US map highlighting different TOU rate structures by region, with color-coded zones showing peak hour times and average rate spreads, including icons for solar panels and batteries in each region."

Real Results: Case Studies and Success Stories

Case Study 1: The Martinez Family (California)

Situation: 6kW solar system, 15 kWh battery, $280 monthly bills

Challenge: High evening energy usage during peak hours

Solution: Implemented TOU optimization with smart scheduling

Results:

Monthly savings: $196 (70% reduction)
Battery ROI: Improved from 12 years to 6 years
Self-consumption: Increased from 40% to 85%
Key Success Factors:
Shifted EV charging to off-peak hours
Pre-cooled house during solar generation
Optimized battery discharge during peak periods

Case Study 2: Small Business Office (Arizona)

Situation: 25kW solar system, 40 kWh battery storage

Challenge: High AC usage during peak rate periods

Solution: Advanced TOU optimization with thermal mass pre-cooling

Results:

Annual savings: $18,500
Peak demand reduction: 65%
Solar self-consumption: 92%

Implementation Strategy:

Pre-cooled building during off-peak hours
Battery discharged strategically during peak periods
Smart HVAC scheduling aligned with TOU rates

Case Study 3: Rural Homestead (North Carolina)

Situation: 10kW solar, 20 kWh battery, high evening loads

Challenge: Limited TOU options, seasonal variations

Solution: Custom optimization for available TOU program

Results:

Seasonal savings: 45% summer, 35% winter
Energy independence: 78% overall
Grid export revenue: $1,200 annually

Avoiding Common TOU Optimization Mistakes

Mistake #1: Undersized Battery for Peak Demand

Many homeowners buy batteries based on daily energy use rather than peak hour demand. This leads to:

Insufficient peak hour coverage
Continued grid purchases during expensive periods
Extended payback periods

Solution: Size your battery for 80-100% of peak hour consumption, not daily average.

Mistake #2: Ignoring Battery Efficiency Losses

Round-trip efficiency matters more than you think. A 10% efficiency loss means:

10% less energy available for peak hours
Reduced financial returns
Longer payback periods

Solution: Choose high-efficiency batteries and factor losses into optimization calculations.

Mistake #3: Static Scheduling vs. Dynamic Optimization

Setting fixed schedules doesn't adapt to changing conditions:

Weather variations affect solar generation
Seasonal usage patterns change
TOU rate schedules may shift

Solution: Use dynamic optimization tools that adapt to real-time conditions.

Mistake #4: Overlooking Grid Export Limitations

Net metering policies and interconnection limits affect optimization:

NEM 3.0 reduces export compensation in California
Some utilities limit export capacity
Time-based export rates vary

Solution: Incorporate local grid export policies into your optimization strategy.

Future-Proofing Your TOU Strategy

Emerging Trends to Watch

Dynamic Pricing Evolution:

Real-time pricing is coming. California's already testing 15-minute rate intervals, and other states will follow. This creates opportunities for even more precise optimization.

Vehicle-to-Grid (V2G) Integration:

Electric vehicles will become mobile batteries, adding another optimization layer to TOU strategies. Early adopters could see additional $1,000-2,000 annual savings.

AI-Powered Optimization:

Machine learning algorithms will predict usage patterns and optimize in real-time, potentially increasing savings by another 15-25%.

Technology Integration Roadmap

2025-2026: Smart Home Integration

Automated appliance scheduling
IoT device coordination
Weather-based optimization

2027-2028: Community Energy Sharing

Neighborhood battery networks
Peer-to-peer energy trading
Aggregated optimization benefits

2029-2030: Full Grid Integration

Bidirectional energy flows
Grid services participation
Revenue stacking opportunities

Preparing for Policy Changes

Rate Structure Evolution:

More complex TOU schedules
Seasonal rate variations
Demand charge integration

Incentive Program Changes:

Shifting from installation to performance incentives
Energy storage specific programs
Grid service compensation

Table: TOU Rate Comparison by Major Utilities (2025)

Utility	Peak Rate ($/kWh)	Shoulder Rate ($/kWh)	Off-Peak Rate ($/kWh)	Peak Hours
SCE	$0.74	$0.35	$0.23	4-9 PM
SDGE	$0.68	$0.42	$0.28	4-9 PM
PG&E	$0.59	$0.31	$0.25	4-9 PM
Austin Energy	$0.12	-	$0.09	2-7 PM
PSEG	$0.21	-	$0.14	8 AM-10 PM

Frequently Asked Questions (FAQ)

What is the difference between TOU rates and standard electricity rates?

Standard rates charge the same price per kWh regardless of when you use electricity. TOU rates vary throughout the day, charging more during peak demand periods (typically 4-9 PM) and less during off-peak hours (typically 10 PM-6 AM). This pricing structure reflects the actual cost of generating electricity, which is higher when demand peaks.

How much can I save with a TOU optimization plan?

Savings vary based on your energy usage patterns, solar system size, and battery capacity. Typical homeowners save 30-50% on their electricity bills, while those with optimized battery systems can achieve savings of 60-70%. The Solar TOU Optimization Planner provides personalized savings estimates based on your specific situation.

Do I need a battery to benefit from TOU optimization?

While batteries provide the greatest optimization benefits, you can still save money with solar alone by shifting energy usage to match solar generation hours. However, batteries unlock the full potential of TOU optimization by storing cheap off-peak or excess solar energy for use during expensive peak hours.

What size battery do I need for optimal TOU performance?

Battery sizing should match your peak hour energy consumption rather than daily usage. Most homes need 10-20 kWh of storage to cover evening peak demand. The optimization planner helps determine the ideal battery size for your specific load profile and TOU rate structure.

How do seasonal changes affect TOU optimization?

Seasonal variations impact both solar generation and energy usage patterns. Summer brings higher AC loads during peak hours but also maximum solar generation. Winter reduces solar output but shifts heating loads. Dynamic optimization adapts to these seasonal changes automatically.

Can the TOU Optimization Planner work with my existing solar system?

Yes, the planner works with any existing solar installation. Simply input your system's generation profile and current energy usage patterns. If you're considering adding battery storage to an existing system, the planner will show the potential benefits and optimal battery configuration.

What happens if my utility changes TOU rate schedules?

TOU rate schedules do change occasionally, typically with 30-60 days notice from utilities. The optimization planner allows easy updates to rate structures and time periods, ensuring your energy strategy remains optimized for current rates.

Is TOU optimization worth it for small solar systems?

Even small solar systems benefit from TOU optimization, though the absolute dollar savings are lower. The percentage savings often remain significant, and adding modest battery storage can dramatically improve returns. The planner helps determine if optimization makes financial sense for your specific system size.

Ready to Optimize Your Solar Investment?

Use our free Solar TOU Optimization Planner and start saving money today!

Conclusion: Take Control of Your Energy Future Today

The energy landscape is changing rapidly, and those who adapt first will reap the biggest rewards. TOU rates are becoming the new normal, and these plans can be a powerful way to shift energy use and lower costs, especially when combined with a solar power system.

Don't let rising electricity costs drain your wallet. The Solar Time-of-Use Optimization Planner puts you in control, transforming your solar investment from a simple energy generator into a sophisticated savings machine.

Remember Sarah from our introduction? After implementing TOU optimization with a properly sized battery, her electricity bills dropped from $250 to $75 per month – a 70% reduction that paid for her battery in just 4 years.

Your energy independence starts with understanding TOU rates. Your energy mastery begins with optimization.

Ready to slash your electricity bills? Try the Solar TOU Optimization Planner today and discover your hidden savings potential. Your future self will thank you.

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