By Seed Solar | Denver’s Local Solar Experts
⚡ What Are Time-of-Use (TOU) Rates, and Why Should You Care?
If you’re an Xcel Energy customer in Colorado, Time-of-Use (TOU) rates affect how much you pay for electricity — depending on when you use it. That’s right, electricity isn’t always the same price. And if you’re not paying attention, TOU rates can sneak up on you and inflate your utility bill — even if you’ve gone solar.
That’s why understanding TOU billing is essential for maximizing your solar savings.
🕒 TOU Rates 101: Peak vs. Off-Peak Explained
Here’s how TOU works:
Xcel Energy divides the day into different price windows:
| Time Period | Rate Type | Cost Level |
|---|---|---|
| 3 PM – 7 PM | On-Peak | 💰 Highest |
| 7 PM – 12 AM | Mid-Peak | 💵 Moderate |
| 12 AM – 1 PM | Off-Peak | ✅ Lowest |
| Weekends & Holidays | Off-Peak | ✅ Lowest |
💡 During on-peak hours (3 PM–7 PM), energy prices can be double what they are at night or on weekends.
🧠 Why Xcel Switched to TOU Rates in Colorado
TOU pricing is part of Xcel Energy’s shift to a “smart grid” — encouraging homeowners to reduce strain on the grid during peak hours. While it promotes energy efficiency overall, it can hurt your bill if you’re not strategic.
☀️ How TOU Rates Impact Solar Homeowners
Here’s the deal: if you have solar and you’re still using most of your power during on-peak hours, you may not be saving as much as you could.
Common solar homeowner mistakes:
- Running A/C full blast at 4 PM in July.
- Delaying laundry or dishwasher runs until 5 PM.
- Charging an EV at 6 PM when rates are highest.
How TOU rates and solar can work together:
If your solar system is sized right and your usage habits are smart, you can offset nearly all your usage with solar during peak hours — or use a battery backup to store cheaper energy and use it later.
🔋 Want to Outsmart TOU? Add a Battery.
Adding a battery like the Tesla Powerwall 3 or Enphase 5P allows you to:
- Charge during off-peak hours or midday solar peaks
- Discharge energy during 3–7 PM on-peak hours
- Avoid expensive grid usage and reduce your reliance on Xcel
➡️ With Xcel’s Renewable Battery Connect, you can earn up to $5,000 in rebates + $100/year in bill credits just for participating.
🧮 TOU Bill Example: With vs Without Solar + Battery
| Scenario | Monthly Cost |
|---|---|
| Traditional usage (TOU plan) | $180+ |
| Solar only, no battery | $90–120 |
| Solar + Battery (optimized) | $10–25 |
✅ Even with TOU rates, smart solar + battery setups can reduce bills to nearly just the connection fee.
💡 Seed Solar’s TOU Tips for Homeowners
- 🕔 Shift energy-intensive tasks to mornings, late evenings, or weekends.
- 🌡️ Pre-cool your home before 3 PM during summer.
- ⚡ Charge EVs after 9 PM.
- ☀️ Store excess solar power in a battery to use during expensive hours.
- 📱 Use Xcel’s MyAccount app or your solar monitoring app to track your usage patterns.
🌞 TOU + Solar = Huge Long-Term Savings (If Done Right)
Time-of-Use billing isn’t going anywhere — but that’s not bad news. If you plan for it, solar can still slash your utility bill, increase your home value, and future-proof your power.
And Seed Solar is here to help you do it right.
🚀 Why Choose Seed Solar?
- ✅ Local Colorado-based team — no call centers, no subcontractors
- ✅ Experts in TOU optimization, system sizing & battery storage
- ✅ Certified installer for Tesla Powerwall 3 and Enphase IQ Battery 5P
- ✅ We handle all permits, paperwork, and rebates
- ✅ 5-star rated and 100% committed to your energy freedom
📞 Ready to Master TOU and Maximize Your Solar Savings?
📍 Based in Denver, Seed Solar proudly serves all of Colorado — including Boulder, Colorado Springs, Fort Collins, and Summit County.
📆 Get a free quote and solar design today
🌐 Visit www.seed-solar.com
📞 Call (720) 713-5492 or email support@seed-solar.com