What is Time-of-Use Tariff?
An electricity pricing plan where the rate per kWh varies depending on the time of day.
Quick Answer
Several UK electricity suppliers offer smart tariffs with time-of-use rates, requiring a smart meter. Typical structures include peak rates of 30–40p/kWh, off-peak rates of 7–15p/kWh, and sometimes agile pricing. Solar PV homeowners on ToU tariffs benefit by using solar power during expensive peak hours and running appliances like washing machines and dishwashers during cheap periods.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Time-of-Use Tariff Explained
A time-of-use (ToU) tariff is an electricity pricing structure where the cost per kWh changes based on when electricity is consumed. Rates are typically divided into peak (most expensive, usually evenings), off-peak (cheapest, usually overnight), and sometimes mid-peak or day-rate periods. ToU tariffs reward users who shift energy-intensive activities to cheaper periods. For solar homeowners, ToU tariffs can increase savings by using free solar electricity during expensive daytime peak rates and importing cheap electricity overnight.
How Does Time-of-Use Tariff Work in the UK?
Several UK electricity suppliers offer smart tariffs with time-of-use rates, requiring a smart meter. Typical structures include peak rates of 30–40p/kWh, off-peak rates of 7–15p/kWh, and sometimes agile pricing. Solar PV homeowners on ToU tariffs benefit by using solar power during expensive peak hours and running appliances like washing machines and dishwashers during cheap periods.
Frequently Asked Questions
Is a time-of-use tariff worth it with solar panels?
Usually yes. Solar panels generate during peak/day-rate hours when electricity is most expensive, so you offset the highest-cost electricity. A battery adds further value by storing cheap overnight electricity.
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John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He fact-checks all content against official MCS and Ofgem data and maintains relationships with MCS-certified installers across the UK.