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Stack Eversource TOU arbitrage, ConnectedSolutions demand response, and SMART 3.0 battery income into one optimized revenue system. Here is how the math works.
Eversource's R-2 time-of-use rate charges $0.3284/kWh during peak hours (Mon–Fri 12–8 PM) and just $0.2201/kWh off-peak. That $0.1083/kWh spread is money your battery can earn every single day — charge cheap, discharge expensive.
But TOU arbitrage is just one layer. When you stack it with ConnectedSolutions ($275/kW summer + $50/kW winter) and SMART 3.0 battery adder ($0.04/kWh), a single Powerwall 3 paired with 11 kW of solar generates over $4,931/year in combined revenue — before counting net metering bill credits.
Understanding when electricity is expensive versus cheap is the foundation of every battery optimization strategy.
$0.3284/kWh
Strategy: Discharge battery and export solar during these hours. Avoid grid consumption.
$0.2201/kWh
Strategy: Charge battery from solar or grid. Run heavy appliances (laundry, EV, dishwasher).
With the right battery settings, this runs automatically. No daily intervention needed.
6 AM – 12 PM
Solar panels generate electricity. Battery charges from free solar production. Home consumption runs on solar directly.
12 PM – 4 PM
Peak hours begin. Battery fully charged. Excess solar exports to grid at peak TOU rate ($0.3284/kWh). Net metering credits accumulate.
4 PM – 8 PM
Solar fades as sun sets. Battery discharges to power home during remaining peak hours, avoiding $0.3284/kWh grid purchases.
8 PM – 6 AM
Off-peak rates kick in. Battery tops off from grid at $0.2201/kWh if solar did not fully charge it. Heavy appliances run now.
Four independent revenue streams that stack together for maximum annual return on an Eversource solar + battery system.
ConnectedSolutions
$275/kW summer + $50/kW winter × 11.5 kW
$3,738/yr
SMART Battery Adder
$0.04/kWh × 11 kW × 1,200 kWh/kW
$528/yr
TOU Arbitrage
10.8 kWh × $0.1083 × 250 days × 92% eff.
$269/yr
SMART Base
$0.03/kWh × 11 kW × 1,200 kWh/kW
$396/yr
Battery-Only Revenue
$4,535/yr
Total System Revenue
$4,931/yr
This is incentive + arbitrage revenue only. Additional savings from net metering bill credits (1:1 retail at ~$0.28/kWh ≈ $3,300/yr for 11 kW) are on top of this.
Adjust solar size, battery, and ConnectedSolutions enrollment to see your personalized revenue breakdown.
Estimate your total annual revenue from TOU arbitrage, ConnectedSolutions, and SMART 3.0 with an Eversource solar + battery system.
Peak Rate
$0.3284/kWh
Mon–Fri 12–8 PM
Off-Peak Rate
$0.2201/kWh
All other hours
Spread
$0.1083/kWh
Battery
13.5 kWh / 11.5 kW
Annual Revenue
$4,931
/yr
10-Year Total
$47,831
est. w/ degradation
Estimates based on Eversource R-2 TOU rates (Feb 2026), SMART 3.0 $0.03/kWh base + $0.04/kWh battery adder, ConnectedSolutions $275/kW summer + $50/kW winter. TOU arbitrage assumes 250 weekdays, 80% depth of discharge, and 92% round-trip efficiency. Section 25D ITC expired Dec 31, 2025.
$0.2836/kWh
$0.2201 – $0.3284/kWh
Verdict: If you have solar + battery, TOU wins. Your battery automates the load shifting that makes TOU profitable. Without a battery, stay on flat rate.
These programs are not competing — they are complementary. Your battery automatically switches between the two modes to maximize revenue:
Battery runs TOU arbitrage: charges off-peak, discharges during peak hours. Earns ~$0.1083/kWh on every kWh shifted. This is your daily baseline revenue.
ConnectedSolutions dispatches during peak grid demand (hot summer afternoons). Payment per event is higher than TOU arbitrage. Battery prioritizes CS on these days.
The result: you earn TOU arbitrage on most days, and get a higher ConnectedSolutions payment on the ~30–50 event days per year. No revenue conflicts — the battery management system handles the switching automatically.
Revenue breakdown for each battery option paired with 11 kW solar on Eversource R-2 TOU.
| Battery | TOU Arb. | CS | SMART Adder | Total | Est. Cost |
|---|---|---|---|---|---|
Enphase IQ 5P 5 kWh / 3.84 kW | $100 | $1,248 | $528 | $2,272/yr | $5,500–$7,000 |
Enphase IQ 10T 10 kWh / 5 kW | $199 | $1,625 | $528 | $2,748/yr | $10,000–$13,000 |
Tesla Powerwall 3 13.5 kWh / 11.5 kW | $269 | $3,738 | $528 | $4,931/yr | $12,500–$15,000 |
2× Enphase IQ 10T 20 kWh / 10 kW | $399 | $3,250 | $528 | $4,573/yr | $19,000–$24,000 |
Recommendation: The Tesla Powerwall 3 (13.5 kWh / 11.5 kW) offers the best revenue-to-cost ratio. Its high power rating (11.5 kW) maximizes ConnectedSolutions revenue, while 13.5 kWh provides solid TOU arbitrage capacity. The 2× Enphase IQ 10T setup earns more total but costs significantly more upfront.
The federal residential clean energy tax credit (Section 25D) expired December 31, 2025. Homeowners who purchase a solar + battery system with cash or a loan receive $0 in federal tax credits in 2026.
If you finance through a solar lease or PPA, the third-party system owner (financing company) can still claim the 30% ITC under Section 48/48E for projects beginning construction before July 4, 2026. The ITC savings are passed through to you as a lower monthly payment. The third-party owner claims the credit — not you and not the installer.
Compare the National Grid R-4 TOU rate and ConnectedSolutions at $225/kW
Read guideDeep dive into demand response program enrollment and earnings
Read guideHow SMART production incentives and battery adders work
Read guideCompare utility rates and solar economics across MA
Read guideCurrent installed costs and payback periods in Massachusetts
Read guideCompare financing options and Section 48 TPO advantages
Read guideHow MA solar still works without the federal ITC
Read guideContact Eversource customer service or log into your online account and request a rate schedule change from R-1 (flat) to R-2 (time-of-use). There is no fee to switch, and it takes effect at the start of your next billing cycle. You need a smart meter, which Eversource will install for free if you do not already have one.
Your battery charges during off-peak hours ($0.2201/kWh) from solar or the grid, then discharges during peak hours ($0.3284/kWh) when electricity is most expensive. The $0.1083/kWh spread is your profit per kWh shifted. With a 13.5 kWh battery at 80% depth of discharge, that is roughly $500/year in arbitrage alone.
Yes, and you should. On normal days (roughly 300 per year), your battery runs TOU arbitrage automatically. During ConnectedSolutions demand response events (capped at 60 hours/year, mostly summer afternoons), your battery dispatches for the higher ConnectedSolutions payment instead. The two programs complement each other perfectly.
The Tesla Powerwall 3 (13.5 kWh / 11.5 kW) offers the best balance of capacity and power for Eversource TOU optimization. Its 11.5 kW continuous power rating maximizes ConnectedSolutions revenue ($275/kW summer), and the 13.5 kWh capacity provides meaningful TOU arbitrage. If you want more arbitrage, two Enphase IQ 10T units (20 kWh / 10 kW) offer more storage capacity.
Generally no. Without a battery to shift consumption, TOU can increase your bill if you use a lot of electricity during peak hours (12–8 PM weekdays). The TOU rate is designed to reward flexible consumption. A solar + battery system makes TOU clearly superior because you can export during peak and consume during off-peak.
Modern lithium batteries are rated for 5,000–10,000 cycles. Daily TOU cycling uses roughly 365 cycles per year. Even at 365 cycles/year, a battery rated for 6,000 cycles will last over 16 years. Tesla warrants the Powerwall 3 for 10 years or unlimited cycles. Enphase warrants IQ batteries for 15 years.
Yes, but revenue is lower. In winter, your solar panels produce less, so the battery may charge from the grid at off-peak rates instead of from free solar. You still earn the $0.1083/kWh spread, but your net savings are reduced by the off-peak charging cost. ConnectedSolutions winter payments ($50/kW) provide supplemental revenue during these months.
No. The residential clean energy tax credit (Section 25D) expired December 31, 2025. Homeowners who purchase a battery with cash or a loan receive $0 in federal tax credits. However, if you finance through a solar lease or PPA, the third-party system owner can claim Section 48/48E (available for projects beginning construction before July 4, 2026) and pass savings through as a lower rate.
Find out how much you can earn by stacking TOU arbitrage, ConnectedSolutions, and SMART 3.0. We design systems optimized for maximum Eversource revenue.
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