What are tiered utility rates?

What Are Tiered Utility Rates

Tiered utility rates are a structure in which the more electricity you use, the higher your rate gets. You are allowed a certain amount of power (kilowatt hours) in each tier. Once you've exceeded the amount in the tier, you move into the next highest tier. The lower tier rates are affordable and the higher tier rates are very expensive.

In many cases, we'll recommend a system that only offsets only your expensive tiers to help you maximize your savings. Solar systems built for people with tiered rates often are designed to eliminate the expensive high tier electricity from your utility.

Choose and control your home energy

See if you qualify for solar

  • 1
  • 2
  • 3
Do you own your home?
What is your average monthly electric bill?
Thanks for your interest in Sunrun! To help you go solar, we need your approval to contact you. By clicking above, you agree that Sunrun may call & text you about Sunrun products at the phone number you entered above, using pre-recorded messages or an autodialer, even if your number is on a "Do Not Call" list. Msg & data rates may apply to text messages. Consent for calls & texts is optional. You can opt out anytime.

Thanks so much! We'll call you shortly.

Sorry, we are not taking new customers in your area yet

 

Refer a friend and get $350

When we customize your home solar system, we assess your energy needs to determine the number of solar panels you’ll need for your home. You’ll still be connected to the grid in case you need to source any extra energy. However, our goal is to keep you in the lower tiers to ensure maximum savings.

Not all utilities are created equal, and not all utilities have tiered utility rates— in fact, a few states like California have inverted tier rates. Contact your local utility to see how yours is set up. You can also contact one of our expert solar consultants, who can help you with all the ins and outs of your local utility.  

Sunrun

Recommended Articles

Where's Sunrun

Sunrun has hundreds of thousands customers powering their homes with renewable energy each month. Locate solar services in your state.

Plans & Services

Find the best home solar plan within your budget today. You can go solar and save for little to $0 down with Sunrun.

Brightbox Battery Storage

Brightbox™ Battery makes storing and managing clean affordable solar energy simple and easy.

Solar Panels

Solar power is yours for the making. Sunrun creates home solar panel systems that optimize for efficiency, durability, service, and value.

Sunrun News

From solar news to smart home energy saving tips, learn how solar is helping thousands save on rising energy costs.

Solar Education

Learn how to go solar simply with Sunrun’s solar education center, including articles, videos & FAQs.

Cost of Solar

As electricity rates are rising the cost of solar panels have never been lower. Switch to home solar and save with Sunrun.

Utilities

Find out more on how to lower your electric bill, how to read your electric bill once you go solar, and which green initiatives your utility is focused on today.