Time-of-Use (TOU) Rates Guide: What They Are and How to
Solar panels generate electricity most efficiently during the mid-day and afternoon. Later, when demand is higher, solar homeowners typically need grid electricity.
Most homeowners in the United States can expect their solar panels to pay for themselves in between 9 and 12 years, depending on the state they live in. Some states, like Hawaii and Massachusetts, offer solar payback periods as short as five years, while payback time in states like Louisiana and North Dakota can stretch to 16 years or more.
If your TOU plan has a peak period later in the afternoon, panels facing west could boost energy generation during that time and help you get more solar energy when electricity demand is high.
Solar systems give maximum power during the afternoons and mid-days. Since TOU rates are higher in the evenings, you can store solar electricity and use it later if you have battery storage or net metering. Fill up your batteries with solar power or grid power during off-peak hours. Then use the stored energy during peak or super-peak rates.
Let's say our example home uses about 9,500 kilowatt-hours (kWh) of electricity per year. According to PVWatts, one kilowatt (kW) of solar panels in Arvada, CO can generate around 1,575 kWh per year. Divide 9,500 by 1,575, and you get a system size of about 6 kW. Step 2. Total system cost before incentives
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