Time-of-Use Pricing
Most households follow predictable, daily energy usage patterns. Peaks in usage typically occur in mornings and evenings when people use laundry machines, kitchen appliances, and lighting, while dips happen during work hours and overnight. This leads to times of low power consumption and times of overuse that strain the electrical grid, known as peak hours.
Time-of-use (TOU) Pricing is a strategy employed by utility providers to balance electricity demand by incentivizing consumers to use energy outside of peak hours.
How does it work?
With TOU pricing, utility providers offer different rates for electricity usage to residential or commercial building owners depending on the time of day. Lower demand times are cheaper, with the primary objective of encouraging consumers to shift day-to-day utility use to these periods, alleviating strain on the grid. Most programs are set up so that they offer discounts on electricity used during off-peak hours (typically, around 11pm to 7am) and impose surcharges for usage during on-peak periods (around 4pm to 9pm), with standard rates for times in between.
For example, BC Hydro’s Time-of-Day Rates Plan offers a five-cent discount per kilowatt-hour (kWh) of electricity consumed during off-peak hours and a five-cent surcharge per kWh during on-peak periods. Homeowners can use their website’s tracking tools to monitor their usage and calculate potential savings to determine if this tiered plan suits their needs.
Peak Demand Shaving
Peak demand shaving involves reducing electricity usage during peak periods to avoid the associated higher costs and prevent electricity spikes. Consumers can optimize their savings under TOU pricing plans by minimizing power consumption during these times. Variablegrid allows people to integrate peak demand shaving with TOU pricing through programable electric vehicle (EV) charging, eliminating the need for lifestyle changes.
Our intelligent EV Energy Management System (EVEMS) is designed to be adaptive and can be programmed for compatibility with TOU pricing plans. It can automatically shift EV charging to off-peak periods, aligning energy consumption with the most cost-effective times. This ensures homeowners achieve optimal savings without manually adjusting their charging stations or routines. Just plug in when you feel like it, and our technology will ensure you receive an ideal charge while working within TOU parameters.
While most people need to change their routines to benefit from TOU pricing, those who use Variablegrid’s peak demand-shaving technology for EV charging have the work done for them. Designed to make EV charging accessible to all, Variablegrid’s peak demand shaving is just one of the features we offer to save homeowners money.
If you have an EV charger and one of Variablegrid’s EVEMS, the opportunities for savings through government and utility incentives programs are robust. Unlock the power of effortless time-of-use pricing discounts today by using peak demand shaving to fit your lifestyle.
By Danielle Shefley