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TOU Rate Structure

Solar ROI for DTE Energy Customers

DTE Energy charges an average of $18.8¢/kWh. Peak rates reach $25.8¢/kWh with off-peak at $11.8¢/kWh, creating strong battery arbitrage value. A 7 kW solar system produces a $9,187 NPV over 25 years.

$14,112
Net System Cost
$9,187
25-Year NPV
10 years
Payback Period
$0.189/kWh
Solar LCOE

DTE Energy Rate Structure

ParameterRate
Average residential rate$18.8¢/kWh
Peak rate$25.8¢/kWh
Off-peak rate$11.8¢/kWh
Peak/off-peak spread$14.0¢/kWh
Rate structureTOU
Export credit policyDistributed generation tariff at retail rate

Solar System Economics

A 7 kW solar system for a DTE Energy customer costs $20,160 before incentives. The 30% federal ITC saves $6,048. The net out-of-pocket cost is $14,112.

At DTE Energy's $18.8¢/kWh average rate, the system saves $1,448 in year one, producing 7,700 kWh. The solar LCOE of $0.189/kWh is -1% below DTE Energy's current rate.

Battery Storage for DTE Energy Customers

$8,400
Battery Net Cost
$1
Daily Arbitrage
$466
Annual Arbitrage
-$4,503
25-Year Battery NPV

DTE Energy's TOU spread generates $466/year in arbitrage value. The 25-year battery NPV of -$4,503 suggests batteries are marginal on economics alone. Backup power value and grid services programs may improve the case.

FAQ: Solar for DTE Energy Customers

How much can DTE Energy customers save with solar?
A typical 7 kW solar system saves DTE Energy customers approximately $1,448/year in electricity costs. Over 25 years, the NPV of savings after system costs is $9,187.
What is DTE Energy's rate structure?
DTE Energy uses a time-of-use (TOU) rate structure with peak rates of $25.8¢/kWh and off-peak rates of $11.8¢/kWh. The $14.0¢/kWh peak/off-peak spread creates significant value for battery storage — TOU arbitrage alone is worth $466/year.
Does DTE Energy offer net metering?
Distributed generation tariff at retail rate
Should DTE Energy customers add battery storage?
Battery storage for DTE Energy customers has a 25-year NPV of -$4,503. The economics are marginal based on TOU savings alone, but backup power value and future grid services programs may change the equation.

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