Sounds like what they do to us here in California for electricity.
Anything over about 560 kilowatt hours a month puts you into tier 4 with California’s PG&E. Tier 4 is just over $0.40 per kilowatt hour. Tier 5 was recently lowered from over 49 cents per kwh to be the same as tier 4.
It made going solar actually make sense at my house. Our PG&E bill went down from over $700 per month to under $100 per month as a result of installing an 8.1 Kilowatt grid tied solar system.
Solar is something I have looked at. I can build my own panels and might do that to run the lighting in my shop.