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.

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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.  

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