TOU Rates in California: What will we learn?
- Jan 4, 2019 9:21 pm GMT
This item is part of the Special Issue - 2019-01 - Predictions & Trends, click here for more
California often acts as the guinea pig or test case for the rest of the nation. Will TOU rates continue the tradition? TOU will become the default residential rate for the state’s 3 IOUs in March of 2019 (customers will be able to opt out of the TOU rate if they wish for the first year). Will TOU rates be the “killer app” that drives residential distributed energy resource (DER) adoption?
The implementation of residential TOU rates in California in 2019 will enhance the appreciation of the term, “Customer Grid” because customers will be more engaged with their energy use. While winter rates will not vary enough to warrant increased customer attention, summer rates will vary by over $.30/kWh. TOU pilots and studies have shown customers will change their usage patterns given economic incentive if the changes on their part are relatively easy. So, how will TOU impact DERs such as solar, storage and energy management systems (EMS)?
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