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PECO Energy serves 1.6 million customers in Philadelphia and southeast PA with the strongest time-of-use rate in the state. A $0.19/kWh summer peak-to-off-peak spread means a properly sized battery can earn $550-720/year in pure TOU arbitrage — the best battery economics in Pennsylvania.
$0.19
Summer TOU Spread
$550-720
Annual TOU Arbitrage
1.6M
PECO Customers
3-5 wks
Interconnection
PECO Energy (an Exelon subsidiary) is the largest electric utility in Pennsylvania, serving the five-county Philadelphia metro area. This territory has the best combination of high electricity rates, strong solar irradiance, and favorable TOU economics in the state.
PECO Rate R-TOU has two distinct seasonal schedules. Summer offers a wider spread and simpler peak window, making it the primary arbitrage season. Winter has a split peak window with a narrower spread.
Peak Hours
Weekdays 2 PM - 7 PM
Weekends and holidays are off-peak all day
Peak Hours
Weekdays 6 AM - 9 AM & 5 PM - 8 PM
Split peak: morning + evening (mid-day is off-peak)
Battery arbitrage earnings vary significantly by season. Summer months (June-September) generate the most revenue thanks to the wider TOU spread and longer peak windows.
Jan
$28
750 kWh
Feb
$30
900 kWh
Mar
$35
1,150 kWh
Apr
$38
1,350 kWh
May
$42
1,500 kWh
Jun
$72
1,600 kWh
Jul
$78
1,650 kWh
Aug
$75
1,550 kWh
Sep
$68
1,350 kWh
Oct
$38
1,100 kWh
Nov
$30
800 kWh
Dec
$26
700 kWh
Summer Total (4 months)
$293
Winter Total (8 months)
$267
Annual Total
$560
The ideal battery size for PECO TOU arbitrage depends on your peak window consumption and budget. Here is how each popular battery option performs in PECO territory.
3.84 kW continuous | $5,500-$7,000
Daily Summer Arb.
$0.76/day
Annual Arbitrage
$180-$220
Best For
Essential backup only, minimal arbitrage
Recommendation
Not ideal for TOU strategy
5 kW continuous | $10,000-$13,000
Daily Summer Arb.
$1.40/day
Annual Arbitrage
$380-$470
Best For
Good balance of cost and arbitrage revenue
Recommendation
Recommended for budget-conscious
11.5 kW continuous | $12,500-$15,000
Daily Summer Arb.
$1.89/day
Annual Arbitrage
$550-$720
Best For
Maximum arbitrage + full home backup
Recommendation
Best overall value for PECO TOU
10 kW continuous | $19,000-$24,000
Daily Summer Arb.
$2.81/day
Annual Arbitrage
$700-$900
Best For
Large homes with high peak consumption
Recommendation
Diminishing returns vs. 13.5 kWh
Pro tip: The 13.5 kWh Tesla Powerwall 3 is the sweet spot for PECO TOU. Its 11.5 kW power output easily covers the 5-hour summer peak window, and the higher power rating means it can handle surge loads during backup events. The 10 kWh Enphase IQ 10T is the budget-conscious choice with ~70% of the arbitrage value at ~80% of the cost.
Here is a complete annual revenue breakdown for a typical PECO territory installation: 12 kW solar + 13.5 kWh battery.
With 2% annual rate escalation, effective payback drops to ~12 years. No Section 25D ITC included (expired).
Estimate your annual savings from TOU peak-shifting, net metering, and SRECs across all 4 PA investor-owned utilities.
Peak Rate
$0.28/kWh
2 PM - 7 PM weekdays
Off-Peak Rate
$0.09/kWh
Spread
$0.19/kWh
Daily Arbitrage
$1.89/day
Battery Cost
$13,500
Tesla Powerwall 3
TOU Payback
28.6 yrs
from arbitrage alone
Annual Production
15,000 kWh
Production Rate
1,250 kWh/kW
Estimates based on published utility TOU tariffs (March 2026), PA SREC market rate of $28/MWh, and 1250 kWh/kW/yr regional production. TOU arbitrage assumes 250 weekdays, 80% depth of discharge, and 92% round-trip efficiency. Section 25D ITC expired Dec 31, 2025. No PA sales tax or property tax exemptions for solar.
PECO interconnection for solar + battery typically takes 3-5 weeks. Battery systems may require additional engineering review for export settings and anti-islanding configuration.
File interconnection application through PECO portal with system design, single-line diagram, and equipment specifications.
PECO reviews system design for code compliance and grid compatibility. Battery systems may require additional review for export settings.
Install solar + battery system. Schedule municipal electrical inspection. PECO requires passing inspection before meter swap.
PECO installs bidirectional net meter. Permission to Operate (PTO) issued. System can begin exporting to grid and earning net metering credits.
Battery-specific note: PECO requires battery systems to have anti-islanding protection and may require a battery export limit depending on your transformer and service panel capacity. If your battery system exceeds 25 kW of total AC capacity, an additional utility study may be required. Residential systems under 25 kW typically proceed through the standard process without delays.
PA SRECs trade on PJM-GATS at $22-35/SREC (1 SREC = 1 MWh). PECO territory has the highest production in PA (1,250 kWh/kW/year), meaning you generate more SRECs per kW installed than any other PA utility territory.
$22-35
Per SREC (1 MWh)
PA AEPS market rate
15
Annual SRECs (12 kW system)
1,250 kWh/kW in PECO territory
$330-525
Annual SREC Income
Stacks with TOU + net metering
PRESS Act watch: The PA Renewable Energy Standard Strengthening (PRESS) Act would raise the solar carve-out from 0.5% to 5.5%, which could significantly boost SREC prices. The bill is currently pending in the PA legislature. If passed, SREC values in PECO territory could increase substantially.
With Section 25D expired, PECO homeowners pay full price for solar and batteries. This makes every revenue stream more important. TOU arbitrage closes the gap that the ITC used to fill.
For PECO customers who want solar + battery without the $53K+ upfront cost, a PPA or lease lets the financing company claim the Section 48/48E commercial ITC (30%) on projects starting construction before July 4, 2026. The savings are passed through as a lower electricity rate, typically 20-40% below your current PECO bill. Battery-inclusive PPAs are increasingly available in the Philadelphia market.
Contact PECO customer service at 1-800-494-4000 or log into your PECO online account to request a rate schedule change from standard residential (Rate R) to Rate R-TOU (time-of-use). There is no fee to switch. You need a smart meter, which PECO installs at no charge. The change takes effect at the start of your next billing cycle.
PECO Rate R-TOU has two seasonal schedules. Summer (June-September): peak is approximately $0.28/kWh during weekdays 2 PM - 7 PM, off-peak is approximately $0.09/kWh all other hours, creating a $0.19/kWh spread. Winter (October-May): peak is approximately $0.22/kWh during weekdays 6-9 AM and 5-8 PM, off-peak is approximately $0.10/kWh, creating a $0.12/kWh spread.
For most PECO customers, a Tesla Powerwall 3 (13.5 kWh, 11.5 kW) offers the best balance of cost and arbitrage revenue. It provides enough usable capacity (10.8 kWh at 80% DoD) to cover the 5-hour summer peak window, earns $550-720/year in TOU arbitrage alone, and provides whole-home backup. The Enphase IQ 10T (10 kWh) is a good budget alternative at $380-470/year arbitrage.
PECO interconnection typically takes 3-5 weeks total. This includes 1-2 weeks for engineering review, 1-3 days for installation, about 1 week for municipal inspection, and 1-2 weeks for PECO meter swap and PTO (Permission to Operate). Battery systems may add 1-2 extra days to the engineering review.
Yes, absolutely. TOU arbitrage (from your battery) and SREC income (from your solar panels) are completely independent revenue streams. A 12 kW solar system in PECO territory produces approximately 15,000 kWh/year, generating about 15 SRECs worth $22-35 each ($330-525/year). Combined with $550-720/year TOU arbitrage, total battery+SREC revenue can exceed $1,000/year.
PECO does not currently have a formal residential battery demand response program comparable to ConnectedSolutions in Massachusetts. However, Act 129 Phase IV mandates peak demand reduction, and PECO is expected to develop battery-based DR programs in 2027-2028. Battery owners will be positioned to participate when these programs launch.
It depends on your usage patterns. Without a battery, TOU rates can actually increase your costs if you consume significant energy during peak hours. Solar helps because it produces during midday, but PECO summer peak extends to 7 PM when solar production drops. A battery lets you capture midday solar and discharge during late-afternoon peak, ensuring TOU works in your favor.
PA charges 6% sales tax on solar and battery equipment with no exemption. On a $13,500 Tesla Powerwall 3, that adds $810. This makes TOU arbitrage payback approximately 1-2 years longer than in states with sales tax exemptions. However, the strong PECO TOU spread ($0.19/kWh) partially compensates for this additional cost.
Compare PECO, PPL, Duquesne, and Met-Ed for battery arbitrage potential.
Read moreAll 7 PA utilities compared for solar, net metering, and rate analysis.
Read moreNo property tax exemption, 6% sales tax, no state credit. Full analysis.
Read moreWe design solar + battery systems optimized for PECO Rate R-TOU. Maximize your TOU arbitrage, SREC income, and backup power with the right system for your Philadelphia-area home.