Solar Lattice

Concept

Utility rate structures

ID
concept:utility-rate-structures
IRI
https://solarlattice.org/kb/concept/utility-rate-structures
Status
active
Also known as
flat rate, tiered rate, rate schedule, tariff, rate structure
Category
Market
Concept kind
market

A utility rate structure is the way an electricity company bills its customers for the energy they use. Under a flat or fixed rate, the customer pays the same price for every kWh. Under a tiered rate, the price per kWh goes up as the customer uses more electricity. Under a time-of-use rate, the price per kWh changes with the time of day and is higher during high-demand periods. A full rate schedule can include energy charges, demand charges, fixed charges, seasons and time-of-use periods. Its format varies with the utility territory, the customer type and the service voltage. Demand charges are often based on the highest peak in each billing cycle, and a billing cycle does not always start on the first day of the month. A site that exports power may fall under a different rate structure from its original tariff, so battery control software also needs the sell tariff. Storage controllers use the configured tariff to plan peak shaving and energy shifting. If the tariff changes, the rate schedule in the controller has to be updated. Utilities are adjusting time-of-use rates, demand charges and demand response programs as energy becomes more expensive at certain times of day.

Parts

Claims

related_to

c1 verified · fact Time-of-use rate

Time of use is one of the basic rate structures; the price per kWh changes with high-demand periods of the day.

verified by: review-workflowverified on: 2026-10-24

c2 verified · fact Demand response

Utilities are changing demand response programs together with TOU rates and demand charges; tariff-based DR programs are moving to different times and rate structures.

verified by: review-workflowverified on: 2026-10-24

c3 verified · fact Net metering

A site that exports power may be billed under a different rate structure, such as a net metering program with non-bypassable charges.

verified by: review-workflowverified on: 2026-10-24

c4 verified · fact Peak shaving

Battery control software uses the tariff it is given to plan peak shaving and energy shifting that lower utility charges.

verified by: review-workflowverified on: 2026-10-24

c5 drafted · lead Tesla Opticaster

To be configured, Opticaster needs the current utility tariffs and billing cycles.

c6 drafted · lead Power purchase agreement

In monitoring platforms, PPA rates are set up in the same rate-schedule configuration as utility rates.

c7 drafted · lead GE kV2c Encompass meter proposed

The meter software sets a TOU schedule using rate types, seasons and rates A to F or Non-TOU.

review note: support check: partial - Passages describe TOU schedule with rate types, seasons and rates A–F/Non-TOU, but do not tie it to the GE kV2c meter specifically.

Referenced by

Data