Explore Ontario’s Ultra-Low Overnight electricity rate, maximize solar savings, and make informed choices

Which electricity billing plan is the best for you?

Residents across Ontario are about to have more control over how they are billed for electricity. Utility companies across Ontario are rolling out a new billing option that features an “ultra-low” overnight price, which is balanced by a moderately higher peak time of day rate. Electricity customers are going to have this option as early as this November. The plan aims to give consumers more flexibility over how they are billed, while promoting energy efficiency. This new ultra-low overnight price plan is suited to families and small businesses who use more electricity overnight, and less during the peak times.

Ultra-Low Overnight (ULO) time of day rate plan details.

Under the ultra-low fixed rate plan, the rate will be fixed at just 2.8 cents per kilowatt-hour (kWh) from 11 p.m. to 7 a.m. This represents a substantial 67 percent reduction compared to the current off-peak rate. This new pricing structure opens up exciting opportunities for consumers who use the majority of their power overnight, and encourages consumers to charge their electric vehicles when prices are low.

On the flip side, to balance the cost, the on-peak rates during weekdays between 4 p.m. and 9 p.m. are “ultra-high”, set at 28.6 cents per kWh. This billing plan will mostly favor those who have the flexibility to use power when it’s cheap, and avoid using power when it’s expensive.

One feature of the new ULO rate plan is that it greatly benefits any grid tied solar panel system selling energy back to the grid. This is because solar owners self-generate their power during mid and peak rate times, while only drawing from the grid at night during ultra-low rate times.

Time-of-Use Plan vs. Tiered-Rate Plan

The time-of-use plan and the tiered-rate plan are the only billing plans currently available, while the Ultra Low Overnight rate will be introduced in November.

• Time-of-Use Rate Plan: This plan charges customers based on when they use electricity. On-peak hours are the most expensive, occurring during busy times of the day, such as mealtimes. Mid-peak hours are slightly less expensive, typically occurring during the day but not at the busiest times. The cheapest time is off-peak hours, which are generally overnight.
• Tiered Rate Plan: This plan allows customers to use a certain amount of electricity per month at a lower price. However, once that threshold is exceeded, the price increases. In the winter (from November to April), customers can use 1,000 kWh at 10.3 ¢/kWh, increasing to 12.5 ¢/kWh after exceeding that threshold. While in the summer (May to October), customers can only use 600 kWh at the lower price.

It is important to make a decision about which billing plan is best for you based on your personalized energy usage, and to contact your provider to make the switch.

How does this affect solar panel owners?

If you own a grid-tied solar panel installation, you are most likely on the Tiered Rate Plan. This is because net-metering customers have historically been automatically moved from the time-of-day rate to the tiered rate after installing solar, in an effort for the power company to save money. The new OEB mandate has given Ontario residents the ability to choose their billing plan, which means that switching to a time-of-use rate will most likely be more profitable for you.

A solar panel installation will massively benefit anybody planning to use the new ultra-low overnight rate plan, since you will be selling back power to the grid at peak daytime rates, while only needing to buy energy from the grid at night during the ultra-low-rate times between the hours of 11pm – 7am.

For those interested in a battery-backup system, adding batteries to your system allows you to take full advantage of the new ultra-low overnight plan, as the SolarEdge battery we offer can be programmed to consume power during peak hours, while charging up overnight, known as load shifting. Though battery bank systems have historically been economically unfeasible for the average consumer, due to this new financial arbitrage opportunity we will surely see a rise in battery-based solar installations.

Where to start?

The new plan is already available for customers of Toronto Hydro, London Hydro, Centre Wellington Hydro, Hearst Power, Renfrew Hydro, Wasaga Distribution, and Sioux Lookout Hydro. Check with your local service provider to see if they are offering the optional rate plan. If you want to review which billing plan you are currently on then you’ll need to contact your power company, and you can review your peak usage times and pick the best plan for your home accordingly.

It’s not uncommon that homeowners can generate more than 90% of all their yearly electricity from solar, especially when paired with the best billing structure for your usage. If you are thinking of going solar, our Solar Specialists and Project Managers can cleanly walk you through the steps of what is required in your province and make sure you maximize the value of the rebates you get back. We’ll also get you started on the vital first step of acquiring a tailor-made solar proposal for your personal energy needs at home.

Request a consultation with one of our solar energy experts

For grant program details, check out our blog post on the Canada Greener Homes Grant.

Read more about how to choose your billing plan

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