Understanding and Optimising Time-of-Use Electricity Rates

Time-of-Use (TOU) electricity rates can be a powerful tool for businesses to reduce their energy costs. Here's what you need to know:

What are Time-of-Use Rates?

TOU rates vary based on the time of day, day of the week, and season. Typically, rates are higher during peak demand periods and lower during off-peak hours.

Understanding Peak, Off-Peak, and Shoulder Periods

- Peak: Highest demand and most expensive rates (usually weekday afternoons and evenings)
- Off-Peak: Lowest demand and cheapest rates (typically nights and weekends)
- Shoulder: Moderate demand and rates (mornings and early evenings)

Strategies to Optimise TOU Rates

1. Shift energy-intensive operations to off-peak hours when possible
2. Use energy storage systems to store cheap off-peak electricity for use during peak hours
3. Implement automated systems to manage energy use based on TOU rates
4. Educate employees about TOU rates and encourage energy-saving behaviors during peak hours

Benefits of Optimizing TOU Rates

By strategically managing your energy use around TOU rates, you can significantly reduce your electricity bills while also helping to balance the grid's energy demand.

Next Steps

Understanding and optimising your energy use based on Time-of-Use rates can lead to substantial savings for your business. Consider consulting with an energy expert to develop a tailored strategy for your specific needs.