Time-of-use rates
Your new heat pump water heater brings the most energy-efficient technology into your home by using less energy than other types of water heaters. To have the greatest impact on your electricity bill, TECH Clean California requires you to enroll in a time-of-use (TOU) rate plan with your electric service provider, if you are not already on one. Your contractor will be optimizing your heat pump water heater’s scheduling so that it follows a TOU schedule (prioritizing energy usage during off-peak times), meaning that you will avoid paying the highest electricity prices to operate your new heat pump water heater, without sacrificing your comfort.
What is a time-of-use (TOU) rate plan?
When demand for energy is high (typically in the evenings) it’s more expensive. Rather than charging a flat rate for electricity, a TOU rate plan offers customers the flexibility to shift some of their electricity use to take advantage of times of the day when prices are lower. This gives you more control over your energy costs and can save you money. California electric utilities now offer a variety of TOU rate plans to choose from. Check your provider’s website to learn about the specific rates in your area.
Customers can shift energy use away from “peak” hours (usually 4:00 p.m. to 9:00 p.m.) when electricity prices and fossil fuel power generation are at their highest, to “off-peak” hours when there is abundant clean and lower cost electricity.
