Core answer: China's residential electricity uses 3-tier pricing (example Beijing): Tier 1 ≤ 2,760 kWh/year at ¥0.4883/kWh, Tier 2 2,761–4,800 at ¥0.5383, Tier 3 > 4,800 at ¥0.7883. Tiers reset every January. On top of that, peak-valley (分时) tariffs — where available — charge ~¥0.55 peak (8:00–22:00) vs ~¥0.30 valley (22:00–8:00). Heavy night users (EV charging, storage heaters) can cut bills 30% by opting in.
How tiered pricing actually bills
Tiers accumulate across the YEAR, not per month. With Beijing's numbers: the first 2,760 kWh all price at Tier 1 regardless of which month they occur; once your cumulative total crosses 2,760 (often around October–November for AC-heavy homes), every additional kWh bills at Tier 2; cross 4,800 and the rest bills at Tier 3. This is why December bills shock families — the marginal kWh costs 61% more than January's.
Typical tier tables (varies by province)
| Province | Tier 1 (annual) | Rate | Tier 3 rate |
|---|---|---|---|
| Beijing | 0–2,760 kWh | ¥0.4883 | ¥0.7883 |
| Shanghai | 0–3,120 | ¥0.617 (peak pricing baked in) | ¥0.917 |
| Guangdong | 0–2,760 (summer std) | ¥0.5888 | ¥0.8388 |
| Zhejiang | 0–2,760 | ¥0.538 | ¥0.838 |
Peak-valley math: should you opt in?
Break-even on valley share: with peak ¥0.55 / flat ¥0.50 / valley ¥0.30, you save if valley usage exceeds ~20% of total. EV owners charging 15 kWh/night hit 60–80% valley share easily: 450 kWh/month at valley saves (0.50−0.30) × 450 ≈ ¥90/month.
Worked examples
Example 1 — AC-heavy household. 5,500 kWh/year in Beijing: 2,760×0.4883 + 2,040×0.5383 + 700×0.7883 = 1,348 + 1,098 + 552 = ¥2,998/year. Same usage in a flat ¥0.49 world would be ¥2,695 — the tier penalty is ¥303.
Example 2 — EV owner. Charging 300 kWh/month, 90% at valley (¥0.30): ¥117/month vs ¥165 at flat rate — ¥576/year saved, plus Tier-1 status preserved for household use.
Example 3 — December shock explained. Family hits Tier 3 in November; December's 400 kWh all bill at ¥0.7883 = ¥315 vs ¥195 in January — identical usage, 61% higher bill.
Common mistakes and myths
- "Tier resets monthly" — it's annual cumulative; that's the whole trap.
- Ignoring peak-valley opt-in — it's usually opt-in via the power app; households with night-heavy loads leave money on the table.
- Assuming all provinces match — tier boundaries and rates are provincial; check your local 发改委 table.
- Counting EV charging in home tier — dedicated EV meters bill separately (and often at valley rates); don't run the car through the household meter.
- Believing "energy-saving appliances don't matter" — dropping 800 kWh/year (old AC → inverter) can pull a Tier-3 family back into Tier 2, compounding the saving with cheaper marginal rates.