This article is an excerpt from the new whitepaper published by Microgrid Knowledge and Enel X North America, California’s Changing Time-of-Use Rates: Calculating the Impact on Behind-the-Meter Solar PV and Energy Storage.

For utilities, electricity is generally more expensive and complex to deliver when demand is high. To help cover these costs, California’s utilities have traditionally imposed time-of-use (TOU) rates, which created a daily schedule that applies different prices for power based on demand trends on the grid. When demand is highest, prices are highest under TOU rates.