PG&E’s Time-Of-Use And Solar

In July 2015, as part of the state energy policy on renewable energy, the California Public Utilities Commission (CPUC) approved a proposal from PG&E to transition 2.5 million electricity customers to time-of-use rates by March 2022.

PG&E will move eligible customers by geographical region, starting in Mendocino and Sonoma counties and extending to further counties in the following months. The process was scheduled to begin April 2021. Although as solar consultants when working with PG&E customers we have already seen many on time-of-use rates in Sonoma, Napa and Solano Counties as early as October 2020.

When PG&E makes the transition of a customer to time-of-use rates they first notify them about 90 days prior. PG&E will then move the customer automatically. At any time from this point, the customer has the option to choose an alternate time-of-use rate plan or opt-out entirely and select another rate plan.

Customers that are already on a time-of-use rate plan, enrolled in either PG&E’s Low-Income Assistance Program or the Medical Baseline Program would be excluded from the plan.

Time-of-use rate plans are based on how much energy you use and when you use it. So, each day customers will incur both Peak and Off-Peak rates. PG&E’s goal is to encourage customers to shift some electricity usage to times when costs are less (Off-Peak times), demand is lower, and renewable resources are more plentiful.

How Time-Of-Use Rates Works:

The price you pay changes based on the time of day, the day of the week, and the season:

Below is an example of the daily structure:

-Peak (highest price) – 4 p.m. to 9 p.m. Monday through Friday (except most holidays).

-Off-Peak (lowest price) – before 4 p.m. and after 9 p.m. Monday through Friday and all hours on weekends and most holidays.

Next an example of seasonal structure:

-Eight months (October-May) have lower prices.

-Four months of summer (June-September) higher prices.

What This Means For Customers On Time-Of-Use:

If you are a family that uses energy during the times of 4 p.m. to 9 p.m. Monday through Friday, then you will be paying PG&E’s Peak (highest prices) for that energy. Sadly, this is when most families are just getting home from school and work, making dinner, doing laundry and other household chores.

With that in view, many folks have found that for qualifying homes Solar is a better option. Solar can save customers 30% to 50% in their first year with $0 out of pocket cost. It also protects you from PG&E’s rate increases and gives you the freedom to use energy the way you want to without getting penalized.

Are you ready to learn more about solar options for your home? Fill out the free consultation form in the link below and we will contact you to schedule a time convenient for you.