What is the difference between a utility rate and a grid program?
How you pay for electricity vs. something you sign up for to earn money.
A utility rate is how you pay for electricity every day. It’s the price you’re charged for using energy from the grid, and it can be structured in a few ways:
- Flat rate: the same price all day.
- Time-of-Use (TOU): cheaper when the grid has plenty of power, more expensive during peak hours.
- Dynamic rates: prices that change more frequently—sometimes hourly—based on real-time grid conditions.
Your rate affects your electricity bill and how much you can save through smart charging and discharging. It applies all year, whether or not you participate in any programs.
A grid program, on the other hand, is something you sign up for to support the grid while getting paid for it. Examples include:
- ELRP (Emergency Load Reduction Program)
- DSGS (Demand Side Grid Support)
- Connecticut V2G Demonstration
These programs pay you when you allow your EV and charger to help the grid by discharging power back to the grid during high-demand events.
In short:
- Your utility rate = how much you pay or save on your normal electric bill.
- A grid program = opportunities to earn money by helping the grid when it needs support.
You can participate in both at the same time, and together they increase the value of having a bidirectional charger.