By CHRISTOPHER FORTSON
Formerly of Los Alamos

Los Alamos Department of Public Utilities is moving toward Time-of-Use (TOU) pricing, with electricity rates reportedly set to vary from $0.11/kWh during off-peak hours to nearly $0.197/kWh during the evening peak window of 5 to 11 p.m. This shift makes sense for utilities. Managing when power is produced & consumed is a smarter tool than simply charging everyone the same flat rate regardless of grid conditions. That dynamic is exactly what led DPU to restructure solar net metering benefits in 2024, citing load management concerns.

But TOU pricing cuts both ways. Solar panels produce their highest output at midday, but generation drops off just as the expensive 5 to 11 p.m. peak demand window begins. Residents with rooftop solar may end up exporting their excess midday power back to the grid at a flat, low wholesale rate (currently around $0.086/kWh), only to buy power back from DPU at nearly $0.20/kWh during the evening peak.

The addition of home batteries creates a positive solution for homeowners and utilities alike. Instead of selling your excess midday solar energy back to the grid for a low wholesale credit of around 8 cents per kilowatt-hour, you store it. You then use that stored energy at night to avoid paying the nearly 20-cent peak rate. Storing your power is far more valuable than exporting it. This setup also solves a major load management problem for the utility. Distributed home batteries act as sponges. They soak up the midday surplus of solar energy and reduce strain on the grid during the evening peak, creating a win for both individual electric bills and broader grid management.

TOU pricing is the right direction. But its full benefits for both ratepayers and the grid depend on residents having tools to respond to price signals. Home energy storage is that tool. As DPU finalizes its rate implementation, the County should consider whether current interconnection policies and any remaining incentive structures adequately support battery adoption alongside solar. The grid problems TOU is meant to solve are the same ones home storage is built to address.

Christopher Fortson is an employee-owner at Positive Energy Solar, a New Mexico-based solar energy contractor.