Time-of-Use Rates: A Guide for Missouri Homeowners

How Time-of-Use (TOU) Rates Work: A Guide for Missouri Homeowners

Energy prices are not the same at every hour of the day. They fluctuate based on when people use electricity the most. For Missouri homeowners, understanding Time-of-Use (TOU) rates can unlock significant savings on your electric bill. This guide will break down TOU rates, how they work, and how you can use them to your advantage—especially if you have a whole-home battery system.

What Are Time-of-Use (TOU) Rates?

TOU rates are a way that energy companies charge you for electricity based on when you use it. Instead of paying a flat rate per kilowatt-hour (kWh) of energy, the price changes depending on the time of day. Energy is most expensive during "peak" hours when demand is highest, and cheapest during "off-peak" or "super off-peak" hours when demand is lower.

Key TOU Periods:

• On-Peak Hours: These are the busiest times, usually in the evening when people come home from work, cook, and use appliances.

• Off-Peak Hours: Electricity costs less during these periods, often during the late evening and early morning.

• Super Off-Peak Hours: These are the absolute cheapest hours to use electricity, typically in the middle of the night.

TOU Rates in Missouri: Evergy’s Pricing Breakdown

If you’re a customer of Evergy Energy in Missouri, you can benefit from TOU rates. Evergy’s program divides the year into two seasons—summer and winter—with slightly different rate structures.

Summer Rates (June 1 - September 30):

• On-Peak Hours (4 p.m. - 8 p.m.): $0.28129/kWh

• Off-Peak Hours (All other times): $0.09376/kWh

• Super Off-Peak Hours (Midnight - 6 a.m.): $0.04688/kWh

Winter Rates (October 1 - May 31):

• On-Peak Hours (4 p.m. - 8 p.m.): $0.22892/kWh

• Off-Peak Hours (All other times): $0.09237/kWh

• Super Off-Peak Hours (Midnight - 6 a.m.): $0.03881/kWh

By shifting your energy use away from on-peak hours, you can save money and reduce stress on the power grid during times of high demand.

How TOU Rates Are Calculated

TOU rates are calculated based on energy demand patterns. Utilities charge more during peak hours because the grid is under strain, and they often have to activate more expensive power plants to meet demand. Conversely, off-peak hours see less demand, allowing utilities to use cheaper, more efficient sources of energy.

For example:

• Peak Hour Demand: Air conditioners, ovens, washing machines, and televisions running simultaneously.

• Off-Peak Demand: Minimal appliance usage, often when people are asleep.

Utilities incentivize off-peak usage to balance demand and avoid blackouts or costly upgrades to the power grid.

Why TOU Rates Matter for Missouri Homeowners

TOU rates matter because they can help you:

• Save Money: Reducing energy use during peak hours lowers your electricity bill.

• Promote Sustainability: Using energy during off-peak hours supports a cleaner energy mix, as utilities rely more on renewable sources during these times.

• Take Control of Energy Use: With knowledge of TOU rates, you can plan your electricity use smarter.

How to Adjust Your Habits for TOU Savings

To maximize savings under Evergy’s TOU program, follow these tips:

1. Shift High-Energy Activities to Off-Peak Hours:

   • Run dishwashers, washing machines, and dryers overnight or in the early morning.

   • Use programmable thermostats to cool or heat your home during off-peak times.

2. Invest in Energy-Efficient Appliances:

   • Energy-efficient appliances consume less electricity and are often eligible for rebates.

3. Install a Whole-Home Battery System:

   • A battery system can store energy during super off-peak hours and power your home during peak hours, saving you money and increasing energy independence.

The Role of Whole-Home Batteries in TOU Optimization

Whole-home batteries are a game-changer for Missouri homeowners looking to maximize TOU savings. Here’s how they work:

1. Charge During Super Off-Peak Hours:

   • Batteries store electricity when rates are as low as $0.04688/kWh in summer and $0.03881/kWh in winter.

2. Discharge During Peak Hours:

   • The battery powers your home during on-peak hours when rates are $0.28129/kWh in summer, avoiding high energy costs.

3. Backup Power During Outages:

   • Batteries provide reliable backup power, ensuring your home stays powered during storms or grid failures.

Example: Savings with a Battery System

Let’s calculate potential savings for a Missouri homeowner with a Tesla Powerwall 2 (13.5 kWh) under Evergy’s TOU program:

• Daily Usage: 15 kWh during peak hours.

• Without a Battery:

  • 15 kWh × $0.28129 (peak rate) = $4.22 per day in summer.

• With a Battery:

  • Charging Cost: 15 kWh × $0.04688 (super off-peak rate) = $0.70.

  • Daily Savings: $4.22 – $0.70 = $3.52.

  • Monthly Savings (30 days): $3.52 × 30 = $105.60 during summer months.

Over a year, these savings add up to significant reductions in your energy bills, making battery systems a worthwhile investment.

Missouri Incentives for Batteries and TOU Optimization

Missouri homeowners have access to several incentives that make installing a battery system more affordable:

1. Federal Investment Tax Credit (ITC):

   • 30% tax credit for battery installations, reducing upfront costs.

2. Property Tax Exemption:

   • Increases in home value from solar or battery systems are exempt from property taxes.

3. Utility Rebates:

   • Ameren and Evergy offer rebates for solar installations, which can be paired with battery systems.

Common Misconceptions About TOU Rates

1. Myth: TOU rates are too complicated to understand.

   • Fact: With simple tools and information, you can easily track your energy use and adjust habits.

2. Myth: Batteries are too expensive.

   • Fact: Incentives and TOU savings often make batteries cost-effective within a few years.

3. Myth: TOU rates don’t offer enough savings to make a difference.

   • Fact: With strategic energy use, TOU rates can cut hundreds of dollars from your annual bill.

Take Action: Start Saving with TOU Today

If you’re an Evergy customer in Missouri, now is the perfect time to take advantage of TOU rates. By adjusting your habits and considering a whole-home battery system, you can:

• Lower your electricity bills.

• Gain energy independence.

• Support a sustainable energy future.

Contact us today to learn how we can help you install a battery system and unlock the full potential of Evergy’s TOU program.