Defined term
Time-of-use electricity rate
A time-of-use electricity rate charges different prices for electricity during predefined periods within a day.
Also known as TOU rate
grid · Concept code GS-CONCEPT-014 · Last verified August 8, 2026
Definition and decision context
Definition
A time-of-use electricity rate charges different prices for electricity during predefined periods within a day.
Applicable jurisdiction: US; varies by jurisdiction
Verified August 8, 2026
Why it matters
Time-of-use periods can change the household value of using, storing, or exporting solar electricity at different hours; export compensation rules remain jurisdiction-specific.
Applicable jurisdiction: US; varies by jurisdiction
Verified August 8, 2026
Concept relationships
Broader concepts
- Electricity pricingPublished concept
Related concepts
- Solar battery storagePublished concept
Affects
- Payback periodPublished concept
Primary sources
- National Renewable Energy Laboratory: A Comprehensive Review of Distributed Photovoltaic Compensation Mechanisms
Revision NREL/TP-7A40-78058 · Accessed August 7, 2026 · Source event as of February 1, 2021
- Federal Energy Regulatory Commission: Frequently Asked Questions: Demand Response and Time-Based Rates
Revision Last updated 2020-07-14 · Accessed August 8, 2026 · Source event as of July 14, 2020