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Utility Tariff / Time-of-Use (TOU) Rate

An electricity pricing structure in which the cost per kWh varies by time of day and season. Peak rate periods (typically late afternoon/evening) are significantly more expensive than off-peak periods (overnight). A battery-equipped microgrid can be programmed for arbitrage: charge batteries during cheap off-peak hours and discharge during expensive peak periods, reducing the utility bill without changing consumption behavior. TOU optimization is increasingly relevant in high-rate states like California ($0.35–$0.55/kWh peak) and Connecticut ($0.28–$0.40/kWh).

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