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Shifting to Cleaner Hours: How Time-of-Use Meets Carbon Intensity

9/29/2025
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

  1. Check Live Intensity → use our Home Energy Calculator.
  2. Overlay TOU Schedule → compare your utility’s rate chart with clean hours.
  3. Pick the Overlap → target the cheapest and cleanest hours.
  4. Use Automation → smart plugs, EVSE scheduling, appliance timers.
  5. 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