That also incentivizes home battery systems. Charge it up overnight and then use the battery power during peak times. It's a good deal for the power company if you do that too because it reduces amount of swing in the grid.
I modeled buying a few Tesla Powerwalls to do time of use shifting, and it didn't make any sense from an investment standpoint. It's a great incentive if you were buying the battery backup anyway, but not as an investment.