TOU

Science & Engineering abbreviation · Energy

TOU
Stands forTime-of-use (rate)
CategoriesScience & Engineering

TOU stands for Time-of-use (rate), an energy abbreviation.

Electricity pricing plan in which the price per kilowatt-hour varies by time of day and season, highest during peak demand periods such as late afternoon and evening. TOU rates encourage customers to shift use, such as EV charging and laundry, to cheaper off-peak hours.

Example: On the TOU plan, charging the car after midnight costs less than half the 4-9 p.m. rate.

Usage notes

California utilities moved most residential customers to TOU rates by default in the early 2020s. Smart thermostats and home batteries can automate savings under TOU pricing. The rates rely on smart meters that record when electricity is used.

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