My electricity costs 40% less from 11 pm to 7 am and 30% more from 4 pm to 9 pm.
A hydro dam can also be thought of as a battery. When you are not using it, the dam fills up (charges).
My utility buys inexpensive excess power from the NA grid when electricity is cheap and drains the dams when third-party electricity is expensive. Adding other renewables to the mix plays a similar role. The pricing incentives shrink peak demand as you suggest.
One of the reasons residential solar is a tough sell for me is that electricity is relatively inexpensive and likely to stay that way.
When the sun is out or wind is blowing, use excess energy to pump water up hill. When you're low on energy supply, open up the dam to run the water back down hill and through a hydro plant.
I've toyed with the idea of doing the same thing at a small scale on our farm but would need to build a second decent sized pond up hill of our main one.
Solar may not pencil out, but energy arb over system lifetime might, especially if you have any battery subsidies available. Just keep in mind flexibility to add solar in the future so its as trivial as installing racking and panels and running power to the storage and load center (optimize for optionality).
https://www.chicagotribune.com/2026/07/28/base-power-battery...
https://diysolarforum.com/threads/new-irs-requirements-for-b...
> The private [IRS] letter ruling was from 2016, prior to the explicit credit for batteries.
From 2023:
> “Batteries and the federal tax credit at a glance: Residential batteries installed in 2023 can qualify for the 30% federal tax credit, even if they aren’t attached to solar panels. The value of the tax credit will vary depending on the equipment installed and labor costs. The battery must be installed at the taxpayer’s residence and be owned by the taxpayer to receive the tax credit.”
(the setting is controlled by Tesla and I have heard some folks, anecdotally, having it removed with a support ticket, ymmv)
See https://epicelectrical.com/what-is-base-power/ for one take on this problem.
For me, I’m happy to have batteries at my home and to voluntarily participate in a VPP, up to certain limits. If there is a predictable bad weather situation coming up, then I want to be able to turn off the VPP and store as much energy locally as I can. And I can only do that if I fully own the battery system that is in place. Tesla doesn’t help me there, neither does Base Power.
Once they are installed, you can then choose to join a VPP program, where you control how much energy will be sold back, and when.
Of course, you won’t make as much money, but you will have more control over how much power is left in your batteries for when you might really need it.
It's kind of crazy how much money you can save by shrinking your peak demand during the time of day it's most expensive.