What a Time-of-Day rate is
A note up front: Long Island Solar Installation Pros is a licensed Long Island solar installer — we are not a PSEG partner and not a NYSERDA-designated contractor. This guide explains how rate plans interact with solar so homeowners can ask the right questions before signing any proposal.
On a standard rate, you pay roughly the same price per kWh no matter when you use electricity. On a Time-of-Day (TOD) rate, the price changes by time of day — higher during peak hours, lower during off-peak and super-off-peak periods. PSEG Long Island offers a Time-of-Day option, and the choice of rate plan changes how much value your solar generation and any battery storage actually capture.
For addresses inside the Village of Freeport the utility is Freeport Electric, not PSEG Long Island, and its rate structure is different — verify those details through Freeport Electric rather than assuming PSEG TOD rules apply.
Why the rate plan matters more once you add solar and storage
Solar generation peaks in the middle of the day. On a Time-of-Day plan, PSEG Long Island tracks net-metering credits in an Energy Credit Bank, and TOD customers may have separate banks for peak, off-peak, and super-off-peak periods. That means the value of a kWh you export depends on when you export it.
Battery storage changes the picture again: instead of exporting midday generation, you can store it and use it during expensive peak hours. On a Time-of-Day plan that price spread is exactly what makes storage pay — which is why the rate plan and the battery decision are best made together, not separately.
When Time-of-Day pays off — and when it does not
Time-of-Day tends to favor households that can shift usage away from peak hours, or that pair solar with a battery to avoid drawing expensive peak power. It tends to work less well for homes that use most of their electricity during peak periods and cannot shift that load — for them, a standard rate can be simpler and no worse.
There is no single right answer. The honest way to decide is to model your actual usage against both rate plans using twelve months of your real PSEG Long Island bill. We do that side by side, and if you are reviewing another installer's proposal we will check whether their rate assumptions hold up. Incentives and rate plans change — confirm details with the program administrator.
Frequently asked questions
- Does going solar require a Time-of-Day rate on Long Island?
- No. Solar works on a standard PSEG Long Island rate or a Time-of-Day rate. The rate plan affects how much value your generation and any battery capture, but it is a separate choice from going solar.
- Is a Time-of-Day rate better if I have a battery?
- Often, yes. A Time-of-Day rate creates a price spread between peak and off-peak hours, and a battery lets you avoid expensive peak power — which is the spread storage is designed to capture. Whether the math works still depends on your usage and battery size.
- How do I know if Time-of-Day will save me money?
- Model your real usage against both rate plans using a full year of your PSEG Long Island bill. If most of your usage already falls in off-peak periods, or you add a battery, Time-of-Day usually helps; if your usage is concentrated in peak hours and cannot shift, a standard rate may be simpler.
Keep reading
Solar in your Long Island town
Local roof, shade, permitting, and utility notes for the towns this guide applies to.
Helpful official resources
Programs change. We link directly to the program administrator rather than rephrase them, and we confirm current details during the consultation.
- PSEG Long Island — Solar + Energy Storage→PSEG Long Island
- PSEG Long Island — Time-of-Day Net Meter Bank Exchange→PSEG Long Island