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Green Mountain Power offers the largest TOU spread in New England: 34.07 cents peak vs 14.52 cents off-peak = 19.55 cents/kWh spread. That means a home battery can earn real money every single day through TOU arbitrage.

TOU Spread
$0.20/kWh
Battery Arbitrage
$500-800/yr
vs CT Spread
5.6x Larger
GMP's TOU spread of $0.1955/kWh is the largest in New England — roughly 5.6x larger than Connecticut's ~$0.035 spread. A 13.5 kWh battery can earn $500-800/year in TOU arbitrage alone. Add GMP's BYOD incentive (up to $10,500) and the battery pays for itself faster than in any other New England state.
Peak Rate
34.07c/kWh
Off-Peak
14.52c/kWh
Spread
19.55c/kWh
BYOD Max
$10,500
This page focuses on TOU rate optimization strategy
For GMP battery program details, enrollment, waitlist info, and BYOD application steps, see our GMP Battery Program Guide. This page explains how to maximize the financial value of your battery through GMP's time-of-use rate schedule.
GMP is the only Vermont utility offering TOU rates. Vermont Electric Cooperative (VEC) and Burlington Electric Department (BED) do not have TOU options.
On-Peak Rate
34.07¢
per kWh
Spread
19.55¢
per kWh arbitrage opportunity
Off-Peak Rate
14.52¢
per kWh
GMP flat rate for comparison: 21.46¢/kWh. TOU customers who shift load save vs the flat rate.
October – March
Peak: 4:00 PM – 9:00 PM weekdays
Off-Peak: All other hours (19h/day)
Weekends: All weekend hours are off-peak
Solar Overlap
Minimal — sunset is 4:15-5:30 PM in winter. Solar production ends just as peak begins. Battery is ESSENTIAL to capture peak value.
April – September
Peak: 2:00 PM – 7:00 PM weekdays
Off-Peak: All other hours (19h/day)
Weekends: All weekend hours are off-peak
Solar Overlap
Moderate — solar panels are still producing during 2-5 PM, but output drops 3-7 PM. Battery supplements the tail end of peak when solar fades.
The concept is simple: charge your battery at off-peak rates, discharge during peak hours, and pocket the difference. Here is the detailed calculation.
Battery Capacity
13.5 kWh usable
Tesla Powerwall 3 usable capacity after buffer
TOU Spread
$0.3407 peak - $0.1452 off-peak = $0.1955/kWh
Gross value per kWh shifted from off-peak to peak
Round-Trip Efficiency
85% (lithium-ion standard)
15% energy lost in charge/discharge cycle
Effective Cycling Days
~250 weekdays/year
Weekdays minus holidays, maintenance, storm days (weekends are already off-peak)
Daily Arbitrage Value
13.5 kWh x $0.1955 x 0.85 = $2.24/day
13.5 kWh × $0.1955 spread × 0.85 round-trip efficiency = $2.24 per cycle
Annual TOU Arbitrage
$2.24 x 250 days = ~$561/year
$500-$800/yr depending on how many days the battery completes a full cycle. Summer weekdays with AC load and winter peak heating days are the most valuable.
GMP's 19.55 cent spread is 5.6x larger than Connecticut's ~3.5 cent TOU spread. Massachusetts has no residential TOU rate at all. New Hampshire and Maine do not offer TOU rates. Rhode Island's optional TOU spread is minimal. Vermont is the clear leader for battery arbitrage economics in New England.
VT (GMP)
19.55¢
CT
~3.5¢
MA
None
NH/ME
None
Select your battery size and GMP program to see your projected TOU arbitrage value, self-consumption savings, and total annual return.
Calculate your TOU arbitrage + battery savings
GMP TOU Rates
Peak
34.07¢
Off-Peak
14.52¢
Spread
19.55¢
Current peak hours: Weekdays 4:00 PM – 9:00 PM (October – March)
Annual Value Breakdown (Year 1)
Cumulative Value
Year 1
$10,706
Annual + incentive
5-Year Total
$14,430
Cumulative value
10-Year Total
$19,085
Long-term value
GMP BYOD Incentive: $9,775 one-time
Enrollment deadline: September 30, 2026. Based on 11.5 kW battery at current BYOD rates.
Estimates based on GMP TOU rate schedule. TOU arbitrage assumes ~250 effective cycle days per year at 85% round-trip efficiency. GMP battery program terms subject to change.
Matching battery capacity to your peak-hour consumption is critical. An undersized battery leaves arbitrage value on the table. An oversized one wastes capital.
Enphase IQ Battery 5P
Entry-level TOU arbitrage. Covers ~2-3 hours of peak demand. Good for smaller homes or budget-conscious owners.
Tesla Powerwall 3
Sweet spot for most GMP customers. Covers the full 5-hour peak window. Enough for whole-home backup during outages.
2× Tesla Powerwall 3 (GMP Lease)
Maximum TOU arbitrage + multi-day backup. The GMP lease option at $55/month makes this accessible. Ideal for large homes, EV owners, or homes with electric heat.
Both programs enable TOU arbitrage, but the economics differ significantly. BYOD wins on long-term ROI while the lease wins on convenience.
$55/mo • 27 kWh (2× Tesla Powerwall 3)
Pros
$0 down (or $5,500 upfront option to eliminate monthly payments)
27 kWh capacity — covers full TOU peak window + multi-day backup
GMP handles all maintenance, monitoring, and firmware updates
No risk of battery degradation costs — GMP bears the risk
Participates in GMP virtual power plant automatically
TOU arbitrage value: ~$1,000-1,100/yr for 27 kWh (covers most of $660/yr lease)
Cons
$55/month ($660/year) ongoing cost — eats into arbitrage savings
1,200+ person waitlist — may wait months for installation
You do NOT own the equipment
10-year commitment
GMP can dispatch your battery during peak grid events (backup prioritized in storms)
Cannot mix brands — Tesla or Enphase only
Up to $10,500 incentive • You own it
Pros
Up to $10,500 upfront incentive from GMP
You OWN the battery — it stays with the home or goes with you
$100/kW bonus for adding battery to existing solar
Choose from 11+ compatible brands (Tesla, Enphase, FranklinWH, etc.)
Full TOU arbitrage value goes to you with no monthly lease payment
No ongoing cost to GMP after enrollment
Cons
Higher upfront cost (battery purchase + installation, minus BYOD incentive)
You bear maintenance and degradation risk
Enrollment deadline: September 30, 2026
Minimum 5 kW battery required
No federal tax credit (25D expired Dec 2025)
Installation coordination is your responsibility
10-year financial comparison using real GMP TOU rates
BYOD 10-Yr ROI
$9,150
Lease 10-Yr ROI
$5,850
BYOD Payback
2.7 years
Annual Value
$1,245/yr
Verdict
BYOD wins on 10-year ROI ($9,150 vs $5,850) if you can afford the upfront cost. The lease wins on convenience ($0 down, no maintenance) and capacity (27 kWh vs 13.5 kWh). For most GMP customers, BYOD with a single Powerwall 3 is the best financial choice.
BYOD Enrollment Deadline: September 30, 2026
Current BYOD incentive rates ($850/kW for 3-hour, $950/kW for 4-hour batteries, max $10,500) may change or the program may close after this date. A $100/kW solar retrofit bonus is also available for adding a battery to existing solar. Minimum battery size: 5 kW.
Each season demands a different battery strategy. Winter is highest value (no solar during peak), summer has solar overlap, and storm preparedness matters year-round.
Charge battery from solar during midday off-peak hours, then discharge during the 4-9 PM peak window when solar is unavailable and rates spike to $0.3407/kWh.
Step-by-Step:
Set battery to charge from solar between 9 AM – 3 PM (off-peak, peak solar production)
Hold charge until 4 PM peak window begins
Discharge battery from 4-9 PM at $0.3407/kWh (saving $0.1955/kWh vs off-peak)
After 9 PM, any remaining loads return to off-peak rate ($0.1452)
Run dishwasher, laundry, and EV charging after 9 PM at off-peak rate
Estimated savings: $280-450 (Oct–Mar, ~130 weekdays)
Solar covers early peak hours (2-4 PM), battery handles late peak (4-7 PM) when solar output fades. The summer peak starts earlier, so coordination between solar and battery matters.
Step-by-Step:
Solar panels directly offset peak-rate consumption from 2-4 PM
Battery begins discharging from ~4 PM as solar output declines
Full battery discharge from 5-7 PM when solar is minimal but peak rate still applies
After 7 PM, loads shift to off-peak rate ($0.1452)
Pre-cool home before 2 PM (off-peak AC) to reduce peak cooling demand
Estimated savings: $220-350 (Apr–Sep, ~120 weekdays)
VT experiences frequent winter storms, ice events, and occasional multi-day outages. Keep a minimum battery reserve for backup, especially during severe weather watches.
Step-by-Step:
Set minimum 20% state-of-charge reserve for backup at all times
During storm watches, increase reserve to 80-100% (sacrifice TOU arbitrage for security)
Battery automatically switches to backup mode during grid outages
Solar recharges battery during daytime outages for extended backup
After storm passes, return to normal TOU arbitrage schedule
Estimated savings: $200 (outage avoidance value)
GMP may dispatch your battery during grid emergencies (extreme cold snaps, heat waves). This happens on top of your daily TOU arbitrage. GMP prioritizes home backup during severe weather.
Step-by-Step:
Enroll in GMP battery program (lease or BYOD) to participate in virtual power plant
GMP dispatches battery during peak grid demand events (~10-30 events/year)
VPP dispatch often coincides with TOU peak hours, so value stacks with arbitrage
GMP never dispatches during outages — backup is always prioritized
BYOD participants earn the upfront incentive + ongoing VPP value
Estimated savings: $100-200 (VPP dispatch bonus beyond TOU)
Solar alone saves money. A battery alone enables TOU arbitrage. But combining all three creates a multiplying effect that maximizes every kWh your roof produces.
Your panels produce electricity during off-peak daytime hours. Without a battery, excess solar exports at the lower net metering rate (~$0.1839/kWh). With a battery, that energy is stored for peak hours.
The battery charges from solar during off-peak hours (free fuel). Then discharges during peak hours when grid power costs $0.3407/kWh. Every stored kWh avoids a peak-rate purchase.
GMP's TOU schedule turns every kWh shifted into $0.1955 of value. Without TOU, the battery just provides backup. With TOU, it's a daily profit center earning $2.24/day for a 13.5 kWh system.
7 AM - 3 PM
Solar produces at off-peak rate. Battery charges from solar.
Off-peak ($0.1452/kWh)3 PM - 4 PM
Solar fades. Battery fully charged and waiting. Home draws minimal grid power.
Off-peak ($0.1452/kWh)4 PM - 9 PM
PEAK WINDOW. Battery discharges to power home. Zero grid purchases at peak rate.
Peak ($0.3407/kWh) AVOIDED9 PM - 7 AM
Off-peak overnight. Run dishwasher, laundry, EV charger. Grid power is cheap.
Off-peak ($0.1452/kWh)No Federal Tax Credit for Homeowner-Purchased Batteries
Section 25D expired December 31, 2025. There is $0 federal tax credit for homeowner-purchased solar or batteries in 2026. However, if you finance through a PPA or lease, the third-party system owner can still claim the Section 48/48E commercial ITC (30%) for projects beginning construction before July 4, 2026. GMP's battery programs are utility incentives, not tax-credit-dependent.
All models below are compatible with GMP's BYOD program. Minimum battery size for BYOD enrollment is 5 kW.
Full peak coverage, whole-home backup
Modular entry, budget-friendly
Whole-home management, smart panel
SolarEdge inverter pairing
Backup-focused, scalable
Premium smart home integration
GMP supports 11 brands for BYOD: Tesla, Enphase, Duracell, FranklinWH, SolarEdge, Generac, SunPower, Panasonic, Savant, Sonnen, Electriq.
GMP's time-of-use peak hours are weekdays 4:00-9:00 PM from October through March (winter) and weekdays 2:00-7:00 PM from April through September (summer). All weekend and holiday hours are off-peak. The on-peak rate is $0.3407/kWh and the off-peak rate is $0.1452/kWh — a spread of $0.1955/kWh, which is the largest TOU spread in New England.
A 13.5 kWh battery (Tesla Powerwall 3) on GMP's TOU rate can generate approximately $500-$800/year in pure TOU arbitrage alone — charging at $0.1452 off-peak and discharging at $0.3407 on-peak. Add self-consumption savings (~$480/yr) and backup value (~$200/yr), and the total value reaches $1,200-1,500/year. This is significantly higher than any other New England state because VT's TOU spread ($0.1955) is roughly 5× larger than Connecticut's.
At $55/month ($660/year), the GMP lease provides 27 kWh of battery capacity (2× Powerwall 3) with $0 down, full maintenance, and monitoring included. The TOU arbitrage value alone for 27 kWh is approximately $1,000-$1,100/year, which more than covers the lease cost. You also get multi-day backup power and VPP participation. The main downside is the 1,200+ person waitlist — you may wait months for installation. If you can get on the list, it is worth it for most GMP customers.
BYOD (Bring Your Own Device): You buy and own the battery, and GMP pays you an upfront incentive of $850-$950/kW (max $10,500). You keep all TOU savings with no monthly payment. The GMP Lease: GMP installs and owns 2 battery units (27 kWh) on your property for $55/month or $5,500 upfront. GMP handles all maintenance. BYOD has better 10-year ROI ($9,150 vs $5,850 for a Powerwall 3), but the lease offers more capacity, zero maintenance, and $0 down.
No. Vermont Electric Cooperative (VEC) and Burlington Electric Department (BED) do not offer time-of-use rates as of 2026. TOU is exclusively available through Green Mountain Power (GMP), which serves approximately 75% of Vermont customers. VEC uses tiered rates and BED uses tiered rates. If you are a VEC or BED customer, a battery still provides backup value and self-consumption benefits, but you cannot earn TOU arbitrage savings.
TOU and net metering work together but serve different purposes. Net metering credits you for excess solar exported to the grid at VT's blended rate (~$0.1839/kWh for Category I, with a positive adjustor). TOU determines what you PAY for grid electricity at different times. With a battery, you can strategically export solar during off-peak hours (when you'd get NM credit) and discharge your battery during peak hours (when you avoid paying $0.3407/kWh). The optimal strategy is to self-consume during peak hours rather than export, since the $0.3407 avoided cost is much higher than the ~$0.22 NM credit.
During a grid outage, your battery automatically switches to backup mode regardless of TOU schedule. The battery powers your home from stored energy and, if paired with solar, can recharge during daylight hours for extended backup. GMP never dispatches your battery (for VPP events) during outages — home backup always takes priority. A single 13.5 kWh Powerwall 3 provides roughly 8-12 hours of essential loads backup. The GMP lease's 27 kWh capacity can power a home for 1-2+ days with careful management.
No. The Section 25D residential energy credit expired December 31, 2025 under the OBBBA (signed July 4, 2025). There is $0 federal tax credit for homeowner-purchased batteries in 2026. However, if you finance your solar + battery through a PPA or lease, the third-party system owner can still claim the Section 48/48E commercial ITC (30%) for projects beginning construction before July 4, 2026. GMP's battery lease is separate from the ITC — GMP offers it as a utility program, not a tax-credit-dependent financing product.
The GMP BYOD (Bring Your Own Device) enrollment deadline is September 30, 2026. After this date, the current incentive rates ($850/kW for 3-hour batteries, $950/kW for 4-hour batteries, max $10,500) may change or the program may close. There is also a $100/kW solar retrofit bonus for adding a battery to an existing solar installation. Eligible batteries must be at least 5 kW. Act before the deadline to lock in the current incentive levels.
Yes. TOU arbitrage and GMP virtual power plant (VPP) participation are complementary, not competing. Your battery performs daily TOU arbitrage (charge off-peak, discharge on-peak) as its baseline operation. On top of that, GMP may dispatch your battery during grid emergencies — typically 10-30 events per year during extreme cold snaps or heat waves. These VPP dispatch events often coincide with TOU peak hours, so you earn arbitrage value AND help stabilize the grid. Both lease and BYOD customers participate in the VPP.
With GMP's BYOD incentive, a Tesla Powerwall 3 (13.5 kWh) costs approximately $13,800 installed minus $10,500 BYOD incentive = $3,300 net cost. At ~$1,245/year total value (TOU arbitrage + self-consumption + backup), the payback is roughly 2.7 years — one of the fastest battery paybacks in the country. Without the BYOD incentive, payback stretches to 11-12 years, making the GMP program critically important for battery economics.
For full TOU peak coverage (5 hours), you need enough capacity to power your home through the entire peak window. A 13.5 kWh battery (Powerwall 3) covers most homes — average VT household uses 2-3 kWh/hour. Larger homes, EV owners, or homes with electric heat should consider 27 kWh (the GMP lease option with 2 units). A smaller 5 kWh battery (Enphase IQ 5P) provides partial peak coverage and works as an entry point for budget-conscious homeowners.
With the largest TOU spread in New England, Vermont is the best state for battery storage economics. The BYOD deadline is September 30, 2026 — lock in your incentive while rates last.
NuWatt connects you with GMP-certified battery installers who understand TOU optimization. Free quotes, no obligation.