TOU Rates are coming! By 2019, most residential customers in California will switch to time-of-use (TOU) rates. This sounds complicated and raises lots of questions. Our White Paper breaks through the noise and provides answers.
The Bottom Line: Change = Opportunity. TOU rates are too complicated for consumers, creating the need for a trusted advisor. This is a wonderful opportunity for cleantech companies to build and leverage lifetime customer relationships. In fact, data from retail energy shows that digital customer engagement can be highly profitable.
1. California is switching most residential customers to TOU rates by 2019. Utilities across the US may follow.
2. Utilities have other time-based pricing programs, such as critical peak period pricing, which are easier to implement and understand. In the long run, these may be preferred by utilities and consumers.
3. TOU rates create two headaches for consumers:
• The rates are complex and confusing. It is difficult for the typical consumer to avoid an unexpectedly high bill.
• The peak price is likely to be in the evening, when most people are at home and using lights, electronics and appliances. Another source of bill surprises.
4. A trusted advisor can help consumers manage energy use. Real-time usage data is not needed, as each home has highly predictable use patterns. The key is consumer engagement post-TOU.
5. TOU does not change the need to have 12 months of utility bills and solar data to accurately size solar systems. Post-install consumer engagement is a must to help the customer achieve solar savings.