Insight into demand response and photovoltaic source with Time of Day pricing

Many utilities are offering or plan to offer customers an option between standard and “Time-of-Day” (ToD) rates for electricity. Standard rates provide a flat rate for energy while the ToD rates are tiered. ToD rates are typically less than the standard rate during off-peak times and higher than the standard rate at peak times. This pricing structure can incentivize demand response (DR) and integration of photovoltaic (PV) generation. DR can shift energy consumption to off-peak times and PV generation typically coincides with peak rates. ToD pricing has the potential to reduce energy costs with DR and facilitate integration of PV energy sources. This paper presents results of a study on integrating a form of demand response and photovoltaic generation with ToD pricing. An example is presented on a residential home located in New York City Suburbs. Our findings for this example show that ToD pricing can be beneficial for customers that engage in Demand Response, however, nominal benefits are seen in conjunction with Photovoltaic energy sources.