Demand response with photovoltaic energy source and Time-of-Use pricing

Several utilities are offering, or plan to offer, customers the choice between standard and “Time-of-Use” (ToU) rates for electricity. ToU rates for energy are based on a tiered pricing structure as opposed to standard flat rates. ToU rates are typically less than the standard rate during off-peak times and higher than the standard rate at peak times. This pricing structure can incentivize combining demand response (DR) with photovoltaic (PV) generation which can shift a customer's net demand from peak to off-peak times. This paper presents a demand response scheme designed for implementation with photovoltaic generation within a ToU pricing environment. The DR algorithm is designed to require minimal sensors, does not require forecasting, and is suitable for automation. Simulation results validating the DR algorithm and quantifying potential savings based on the level of DR are presented based on PV generation data and residential load consumption data in New York.