Defined term

Tiered electricity rate

A tiered electricity rate applies different energy prices to defined blocks of electricity consumption within a billing period.

Also known as inclining block rate

grid · Concept code GS-CONCEPT-063 · Last verified August 20, 2026

Definition and boundaries

Definition

A tiered electricity rate applies different energy prices to defined blocks of electricity consumption within a billing period.

Applicable jurisdiction: US; rate schedules vary

Definition claim verification: Verified August 20, 2026

In plain language

For Tiered electricity rate, the controlling utility tariff, interconnection document, meter arrangement, and jurisdiction matter more than a generic national description.

What it is not

It is not automatically a time-of-use rate because tiers can depend on quantity rather than time.

Decision context

Why it matters

Block sizes, direction, season, baseline, time period, customer class, minimums, and solar billing treatment must come from the actual tariff.

Applicable jurisdiction: US; rate schedules vary

Decision-context claim verification: Verified August 20, 2026

Information boundary

This page provides general educational context, not a site design, production guarantee, utility determination, contract interpretation, legal opinion, tax conclusion, or individualized financial advice. Verify property, equipment, utility, jurisdiction, program, and agreement details before acting.

Concept relationships

Broader concepts

  • Electricity pricingPublished conceptTiered electricity rate is a more specific concept under Electricity pricing

Affects

  • Payback periodPublished conceptTiered electricity rate can affect how Payback period is evaluated

Primary sources

What to do next

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