A new pilot offers essentially free electricity during the day. Will it change people's behavior?

California has more solar power than it can use during the day, and while the state is increasingly storing that energy in batteries, there’s a simpler strategy to help too: changing behavior.

“If we can better align our consumption with the sun, we use more clean energy, we reduce pressure on the grid in the evening, and we eventually lower costs for everyone,” said Magali Delmas, a strategy professor at UCLA’s Anderson School of Management and Institute of the Environment.

Solar and wind power are also the state’s cheapest source of electricity (our high electricity costs are mostly driven by utilities distributing that energy and shoring up the grid in the face of worsening wildfires and increased electrification).

Delmas is the research lead on a pilot program launched this month by L.A.-based nonprofit electricity provider Clean Power Alliance. For the next two years, 4,000 customers will get lower cost electricity during the day, then Delmas and her team will analyze the data to see if more people actually used it. (Customers don't pay Clean Power Alliance anything for generating the solar electricity but still have to pay the utility that delivers it.)

“The question is whether free electricity in the middle of the day is enough to change habits,” Delmas said.

The work could inform future rate incentives that also reduce stress on the grid during high demand.

It’s not an entirely new idea — Australia has experimented with periods of free electricity.

Time-of-use rates also aim to incentivize behavior. Delmas said this pilot provides a larger financial incentive given the electricity generation cost is set to $0. The Clean Power Alliance estimates it could save customers hundreds on their electric bills per year.

The pilot also focuses on customers who have already electrified their homes to a certain extent — they can’t have rooftop solar, but maybe they swapped a gas stove for induction, a gas water heater for an electric heat pump, or have an electric pool pump or electric vehicle they charge at home. Though the pilot isn’t adding customers, qualifying customers can sign up any time for the pilot’s rates.

“We're also in the business on the climate side of trying to actually incentivize electrification,” said Ted Bardacke, chief executive of the Clean Power Alliance.

Though it may seem impossible to reschedule when you charge your EV or run the A/C or dishwasher, Bardacke said increased automation can be key to managing the future grid.

“Most dishwashers today have a delay setting, so why not hit that delay setting to run beginning at 8 o'clock in the morning?” Bardacke said. “Let's say you have an air conditioner with a programmable thermostat. Why not run the air conditioning from 2 to 4 [in the afternoon] when the electricity is not costing you [as much] and have it nice and cool when you get home?”