Shifting to Cleaner Hours: How Time-of-Use Meets Carbon Intensity
Shifting to Cleaner Hours: How Time-of-Use Meets Carbon Intensity
Utilities are pushing customers toward Time-of-Use (TOU) pricing, where electricity costs vary by hour. At the same time, carbon-conscious consumers are learning about grid intensity — how clean or dirty the electricity is at any given hour.
But here’s the puzzle: TOU pricing and carbon intensity don’t always line up. In some hours, electricity is cheap but dirty; in others, it’s expensive but clean. This article explains the overlap, the mismatch, and how you can win on both fronts.
Why This Matters
- Money vs Carbon: Aiming only for the cheapest hours may not reduce emissions.
- Behavior Change: Smarter scheduling = lower bills and lower CO₂.
- System Impact: Collective shifts can flatten demand curves and cut fossil fuel reliance.
What Is TOU Pricing?
Time-of-Use pricing divides the day into blocks:
- Peak: Highest demand, highest price.
- Off-Peak: Lowest demand, lowest price.
- Mid-Peak: In between.
Utilities design TOU to encourage customers to spread demand and avoid system overloads.
What Is Carbon Intensity?
Carbon intensity is the grams of CO₂ emitted per kWh supplied on the grid. It depends on:
- Fuel mix (coal, gas, nuclear, renewables)
- Imports/exports with neighboring grids
- Daily and seasonal generation patterns
Unlike TOU, intensity is about emissions, not cost.
Where They Align
- Solar-heavy grids: Midday = both cheap and clean.
- Wind-heavy grids: Overnight = both cheap and clean.
- Coal-heavy grids: Peak = expensive and dirty.
In these cases, TOU and carbon intensity complement each other.
Where They Clash
California (CAISO)
- Midday is very clean (solar), but TOU may mark it as mid-peak pricing, not off-peak.
- Evening (6–9pm) is dirtiest and most expensive.
UK
- Overnight can be clean due to wind, but TOU may still charge “cheap” rates earlier in the night when fossil plants are running.
Result: if you follow TOU blindly, you may save money but increase emissions.
How to Balance Both
- Check Live Intensity → use our Home Energy Calculator.
- Overlay TOU Schedule → compare your utility’s rate chart with clean hours.
- Pick the Overlap → target the cheapest and cleanest hours.
- Use Automation → smart plugs, EVSE scheduling, appliance timers.
- Prioritize Carbon When You Can → if the cost difference is small, choose the cleaner hours.
Case Study: EV Charging
- Option 1: Charge at 10pm (cheap TOU, dirty grid) → 25 kg CO₂
- Option 2: Charge at 2am (slightly higher TOU, cleaner wind) → 12 kg CO₂
- Option 3: Charge at noon (solar surplus, mid-price) → 8 kg CO₂
The right answer depends on your goals. If you value both, the sweet spot is the overlap.
Action Plan
- Get your TOU schedule from your utility.
- Compare it daily with live intensity.
- Shift flexible loads: laundry, EV charging, water heating.
- Advocate for carbon-aware tariffs that align cost and carbon.
Frequently Asked Questions
Q: Why don’t utilities align TOU with carbon intensity?
A: TOU is designed around demand and grid stress, not emissions. Aligning both requires policy changes and advanced forecasting.
Q: What if my utility doesn’t have TOU pricing?
A: You can still follow carbon intensity