Energy Arbitrage
Buying electricity when it is cheap (off-peak or midday solar surplus) and using or selling it when prices are high (peak evening hours). Battery storage enables residential energy arbitrage.
Why It Matters
Under TOU rates with large peak/off-peak price differences ($0.15+), battery arbitrage can generate $50-150/month in savings after accounting for round-trip efficiency losses.
Related Tools
Related Terms
Time-of-Use (TOU) Rate
An electricity pricing structure where rates vary by time of day. Peak hours (usually 4-9 PM) have higher rates.
Load Shifting
Moving electricity consumption from one time period to another — typically from expensive peak hours to cheaper off-peak hours — using timers, smart controls, or batteries.
Peak Shaving
Using batteries or load management to reduce maximum power demand during peak hours, lowering demand charges (for commercial) or maximizing TOU savings (for residential).