It’s becoming increasingly popular for utilities to offer time-of-use (TOU) plans to their residential customers. In a standard electricity plan, you pay the same rate for your electricity regardless of the time of day. However, with TOU plans, the rate you pay for electricity depends on the time energy is drawn from the grid. So, you’ll pay different amounts based on a schedule developed by your utility company of peak hours, off-peak hours, and in some cases, super off-peak or partial-peak hours. We discuss what this means for you and how it impacts your electric bill.
Key takeaways
Under a TOU plan, you pay different prices for your electricity based on the time of day and year.
On and off-peak electricity hours are when utilities shift electricity prices based on demand.
Many power companies charge off-peak use rates during holidays and weekends.
To save money on your electric bill, be aware of when your electricity rates are cheapest and schedule your energy usage with your TOU rates in mind.
If you want to lower your electricity bill even more, you can go solar. Check out the EnergySage Marketplace to compare solar quotes.
What’s in this article?
What are off-peak electricity hours?
Questions to ask before signing up for TOU electricity rates
What electric rate plans does my utility offer?
What are the peak hours for electricity?
When can I get cheap electricity with TOU rates?
Can I change my habits to use electricity during off-peak hours?
How will TOU rates impact your bill?
How to get the cheapest electricity with TOU billing
What are peak vs. off-peak electricity hours?
Your electric bill is based on a charge per kilowatt-hour (kWh), so you’re billed for actual electricity pulled from the grid. Under TOU rate plans, your utility charges you more for electricity usage during afternoon “peak” hours when the electricity demand is higher, also known as peak demand. When demand is lower, the cheapest electricity can be found during “off-peak” hours. For example, on the East Coast, summer off-peak times might be from 6 pm to 2 am when temperatures are lower and fewer people need to cool their living space, creating less demand for electricity.
If you have TOU rates, you can lower your electric bills by waiting for the cheapest time of day to use electricity. For example, you can schedule when you run a clothes dryer, start the dishwasher, or charge your electric car around these times of the day. These off-peak hours are usually at night but depend on your utility’s specific time-of-use rate plan. Utilities offer TOU plans to reduce demand on the electric grid by motivating their customers to reduce electricity use during peak hours.
Many utility companies offering TOU rates allow you to opt into it as a residential customer, but this isn’t always the case. California is the first state to require everyone installing a solar panel system to switch to a TOU rate plan under their net metering 2.0 program. Time-of-use electricity pricing is also a common option for commercial buildings, especially if tenants have flexibility in when they can use the most electricity.
What to consider before signing up for time-of-use electricity rates
In some cases, TOU rate plans can cost you more in the long term, but they also offer significant opportunities to save money. Before you opt into a TOU plan, ask yourself the following questions:
What electricity rate plans does your electricity provider offer?
Many utilities have various residential rate plans, including:
Time-of-use rate plans: vary based on the time of day and season; peak and off-peak hours determine the exact price you pay.
Tiered rate plans: some utilities charge you a higher electricity rate if you’re regularly using extremely high amounts of energy, using a baseline to determine if your rate is higher. Sometimes these rates work with TOU plans as well.
Solar rate plans: if you install or already have solar panels, there may be a specific plan available with your utility that takes into account the time you’re using energy as well as net metering (net metering is getting a credit for energy your solar panels produce that you don’t use).
Other utility-specific special rates: some utilities have special programs if you’re charging an electric vehicle (EV) on off-peak hours or reducing energy consumption a certain number of days each year. Check with your utility company to see what might be available. These are usually incorporated into any existing TOU rate plan.
The best way to determine the optimal electricity plan with your utility is to review your options on their website. If you have solar, an EV charger, or a battery, these will all be important to consider when determining which plan is best for you.
What are the electricity peak hours?
During specific time periods known as peak hours, your cost of electricity will always be higher. The exact hours and the premium you pay for electricity during peak hours will vary depending on the utility company and the specific rate plan you’re opting into.
When electricity is cheapest depends primarily on your location and the off-peak periods utilities operate. On the East Coast, it’s hottest after 2 pm, so you’ll usually need air conditioning during the summer months. As such, it isn’t surprising that the peak hours for this region are often from 2 in the afternoon until around 6 in the evening.
However, in the wintertime, peak hours change to the early morning as homeowners and businesses turn up the heat so that living and work spaces are comfortable. You may be wondering if energy is cheaper at night and the answer, according to the data, is usually yes, regardless of region or time of year. In most cases, you’ll pay higher rates on weekdays during certain hours depending on the season and where you live.
On-peak hours for top 10 states by solar power usage
STATE
UTILITY COMPANY
ON-PEAK SUMMER HOURS
ON-PEAK WINTER HOURS
Massachussetts
National Grid
8 a.m. to 9 p.m., Monday-Friday
8 a.m. to 9 p.m., Monday-Friday
Massachussetts
Eversource
Noon to 8 p.m., Monday - Friday
Noon to 8 p.m., Monday - Friday
New York
National Grid
11 a.m. to 5 p.m., Monday-Friday (June - August)
5 p.m. to 8 p.m., Monday-Friday (December - February)
New York
conEdison
Noon to 8 p.m., Monday-Friday (June 1 to September 30)
Noon to 8 p.m., Monday-Friday
North Carolina
Duke Energy
1 p.m. to 6 p.m., Monday-Friday (April - September)
6 a.m. to 9 a.m., Monday-Friday (October - March)
Georgia
Georgia Power
2 p.m. to 7 p.m., Monday-Friday (June-September)
N/A
California
SCE
4 p.m. to 9 p.m. or 5 p.m. to 8 p.m., Monday-Friday
4 p.m. to 9 p.m. or 5 p.m. to 8 p.m., Monday-Friday
California
PG&E
4 p.m. to 9 p.m. or 5 p.m. to 8 p.m., Monday-Friday
4 p.m. to 9 p.m. or 5 p.m. to 8 p.m., Monday-Friday
Texas
Xcel Energy
1 p.m. to 7 p.m., Monday-Friday (June - September)
N/A
Florida
FPL
Noon to 9 p.m., Monday-Friday (April 1 - October 31)
6 a.m. to 10 a.m. and 6 p.m. to 10 p.m., Monday-Friday (November 1 - March 31)
Arizona
APS
4 p.m. to 7 p.m., Monday-Friday
4 p.m. to 7 p.m., Monday-Friday
Nevada
NV Energy
1:01 p.m. to 7 p.m., Monday-Friday (June 1 - September 30)
N/A
New Jersey
JCP&L
8 a.m. to 8 p.m. EST, Monday - Friday
9 a.m. to 9 p.m. EST, Monday - Friday
Note: check with your utility company, as rates are subject to change.
Off and on-peak electricity hours depend on the state you live in and your energy provider. Before you adjust your habits to save on your electricity based on time-of-use rates, check with your electric utility about their specific off and on-peak hours and what holidays are considered off-peak.
Some utility companies offer more than one time-of-use rate plan or option to select between. These TOU rate plans may have different hours classified as peak hours or may even include some “partial-peak” hours that charge less than peak rates but more than off-peak rates. Many rate plans will depend not only on the hour you’re using electricity but also on the season. Summer rates are often higher than winter rates because of energy-intensive air conditioning systems running during hot days. You might also have a rate plan that has lower peak rates, or fewer peak hours, on the weekends.
Peak hours for electricity tend to be when you expect them because it’s when most people use electricity. Generally, you can expect peak hours to start sometime in the afternoon and go into the evening when people return home after work and use more lights and appliances.
Every utility plan is different, so be sure to check the specifics and consider how the peak hours for electricity will impact you personally on your rate plan. If you’re already using most appliances in your home during the hours specified as off-peak, you could potentially save money by switching into a time-of-use electricity plan.
Do peak hours change during holidays and weekends?
Usually, power companies charge off-peak use rates during holidays and weekends, such as Memorial Day, the 4th of July, Labor Day, Thanksgiving, Christmas Day, and New Year’s Day. If you’re on a TOU plan, there may also be a demand charge based on the highest amount of energy used, regardless of if it’s during peak or off-peak hours.
Electricity is often cheaper late at night or early in the morning, so if you run your heaviest loads during those times, you’ll be able to save on your electric bill. These are typical off-peak hours when not as many people are using electricity.
Can I change my habits to use electricity during off-peak hours?
Even if you don’t currently use much electricity during off-peak hours, do you have the flexibility to change everyday habits and take energy-saving steps during peak hours? This might seem difficult for homeowners who leave the house every day for work and return in the evening when electricity rates will be higher, but there are still steps you can take to save money using time-of-use and schedule your energy usage outside of peak times.
For example, many appliances – including dishwashers, washing machines, and dryers – have scheduling functions so that you can set the time for them to run ahead of time. If you own an electric car, you can plan to charge it at night during off-peak hours. Also, keeping your air conditioner set to 78 degrees or above can help reduce costs, especially during peak demand hours.You can also wake up earlier to start household chores that require a good amount of electricity, wait to charge appliances until it’s late at night, and generally try to be more conscious of when you’re using electricity. All these actions help minimize your use during peak hours and cut down on energy use.
Are there other ways that switching to TOU rates will impact your bill?
It’s a good idea to compare the current rate you’re paying for electricity, including supply and delivery, to the rates under a time-of-use plan. Is off-peak pricing a significantly cheaper rate than you’re paying on your current rate plan? If the rates are similar, you may not save much by opting into a time-of-use plan, even if you change your behavior.
Other steps you can take to get the cheapest electricity with TOU billing
Even if you adjust your habits so you’re using more electricity during off-peak hours, it’s not feasible to expect you to eliminate using electricity during the other hours of the day. There are other measures to ensure that your bills are as low as possible under a time-of-use plan, such as developing an energy schedule or using a smart thermostat to adjust temperatures during peak hours.
Consider installing a battery
Many homeowners are considering installing energy storage as a backup power source during power grid outages and to combat time-of-use electricity rates during peak hours. With a backup battery, you can charge your battery during off-peak hours when electricity rates are at their cheapest and then discharge and use electricity stored in the battery during peak hours. In addition to taking advantage of a lower TOU rate, you can also get incentives and rebates to make investing in energy storage for your home more affordable.
Think about going solar
Using clean energy can help you reduce energy costs. Solar panels can lead to thousands of dollars in electricity savings over 30 years because you’re generating your power instead of buying it all from your utility. If you have time-of-use rates with your current rate plan, the credits you get for sending excess solar electricity back to the grid will depend on the time of day. If your solar panels produce lots of electricity at peak hours, you’ll receive credits at the peak hour rate, which you can use later. However, that also means you’ll be credited at a lower rate for the electricity you send back during off-peak hours.
In the Northern Hemisphere, while south-facing roofs are typically where solar panels will generate the highest amount of electricity, panels on western-facing roofs will generate the most during peak hours. So, it’s a good idea to talk to your solar installer about the best design for your system so that you maximize your solar savings under your TOU plan.
See what electricity costs near you
The more expensive your electricity is, the more time-of-use rates and off-peak electricity hours impact you. Curious how much electricity costs near you? Click on your state to learn more:
Whether you’re considering time-of-use plans or not, going solar will help you save money on electricity with renewable energy instead of using fossil fuels like natural gas. The EnergySage Marketplace makes it as easy as possible to compare solar pricing from various installers near you. Many homeowners can substantially reduce their energy costs by going solar. If you want to see estimates of what it may cost and save you in electricity bills over time, you can also check out our Solar Calculator.
While this depends on your energy provider, off-peak hours tend to be quieter periods when power demands are at their lowest (for example, between 10pm and 8am). Not everyone has the luxury to do the laundry before 8am, but it's worth checking with your provider to find a cheaper running time that suits your routine.
The cheapest times to use electricity are during non-peak hours. Non-peak hours vary a little between Retail Electric Providers but generally range from 10:00 pm-5:00 am. You don't need to switch to the graveyard shift in order to save money on your electricity bills.
In general, Off-Peak hours begin at 09:30 from Monday to Friday in cities and large towns, and at 09:00 everywhere else. If your train is scheduled to depart after this time, you can travel with an Off-Peak ticket.
'Peak electricity hours' refers to the specific time of day at which electrical consumption is at its highest, and electricity rates are their most expensive. Off-peak hours are when electricity demand is at its lowest, and electricity prices are at their cheapest.
Electricity prices are higher during peak demand hours and lower during off-peak hours. Peak times may vary by rate and/or energy provider but are generally defined as the hours between 4 to 9PM.
If you leave your computer or laptop plugged in to charge overnight, you could be wasting a significant chunk of electricity. Even when it's off, that power cord will continue to draw energy. Phones. Similarly, leaving your phone plugged in to charge overnight is a bad idea.
Peak fares - Monday to Friday (not on public holidays) between 06:30 and 09:30, and between 16:00 and 19:00. Off-peak fares - at all other times and if you travel from a station outside Zone 1 to a station in Zone 1 between 16:00 and 19:00, Monday to Friday.
Off-Peak Period means a period that is not a Peak Period. Off-Peak Period means any hour that is not an On-Peak Period. Off-Peak Period means all the days of any given Contract Year other than the Peak Period days. Off-Peak Period means the period between 2200 hours and 0800 hours.
The largest electricity consumer in the average household is your heating and cooling appliance. By a long shot. Central air conditioners and heaters use tons of energy in order to keep your home set to the right temperature.
Monthly electric bills are a product of how much electricity you use per month and your electric rate. In Florida, the average monthly electric bill for residential customers is $231/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 1,435 kWh * 16 ¢/kWh.
The short answer is yes! A variety of different electronic devices and appliances, including televisions, toasters, lamps, and more, when plugged in, can consume electricity even when they're turned off.
The U.S. Consumer Product Safety Commission recommends unplugging electrical devices when not in use, predicated on the obvious but nevertheless correct observation that something unplugged can't start fires or shock someone.
How Much Do I Save by Unplugging Appliances? The United States Department of Energy reports that homeowners can save anywhere between $100 and $200 each year by unplugging devices not in use. Typically, an item drawing a single watt of energy costs about one dollar to power annually.
Off-Peak tickets are semi-flexible tickets that let you travel by train at certain times of the day, certain days in the week or on specific routes. These tickets are normally cheaper because of the restrictions they place on travel times, Usually avoiding the nightmarish 'rush hour' for morning and evening commuters.
The off-peak hours for Economy 7 meters usually fall somewhere between 10pm and 8am. The actual hours vary across the country, and they depend on the type of meter you have too. Your off-peak hours may not be in one continuous time period.
On average, the latest TVs use around 58.6 watts when running and 1.3 watts while in standby mode. The range of power consumption is 10W to 117W while the TV is on and 0.5W to 3W on standby, and this large range is because there are different technologies and sizes of TVs which result in different power consumption.
According to the United States Energy Information Administration, the average American household consumed 10,632-kilowatt hours (kWh) of electricity last year. The average kWh per month was 886, while the average kWh per day was 29.
Because demand for electricity is lowest during the spring and fall, electricity may cost less in these seasons. Electricity market rates are higher in summer and winter because people use more electricity for air conditioning and heat.
Dryers use more electricity of the two appliances, so you may also consider air drying clothes when possible to minimize your electricity consumption on laundry day.
So, the clear winner here is the lightbulb…at least until you multiply that by how many lights you have in your house. Plus, if you still use incandescent bulbs (switch to LEDs ASAP if you do), 2 – 3 will use more electricity than most TVs over the course of the year.
Domestic fridge power consumption is typically between 100 and 250 watts. Over a full day, a fridge records between 1 to 2 kilowatt-hours (kWh) of total energy usage, or about $150 per year per fridge.
According to the Energy Saving Trust, any switched on charger that is plugged in will still use electricity, regardless of whether the device is attached or not.
That's wasted electricity—technically, it's called "no load mode," but in reality it's just another vampire. According to the Berkeley Lab's testing, cell phone chargers in no load mode consume around 0.26 watts, and laptop chargers, 4.42 watts.
Peak pricing refers to the practice of charging higher prices for goods or services during times of high demand, while off-peak pricing refers to the practice of charging lower prices during times of low demand.
Off-Peak Day Return tickets are valid for travel on the date shown on the ticket and until 04:29 the following morning. All travel must be completed by this time.
Off-Peak Return tickets are valid for outward travel on the date shown on the ticket and until 04:29 the following morning. If you cannot complete your journey on the same day you will be allowed to finish it the following day - see 'Break of journey' below.
adjective. of, relating to, or during a period of less than maximum frequency, demand, intensity, or use: the off-peak travel season; off-peak train fares. lower than the maximum: off-peak production.
The off-peak season, also known as the low season, refers to the slowest travel season, independently determined; usually an off-peak season is such due to rainy weather, colder temperatures, and other factors which drive tourism away.
Hair dryers, ovens, and space heaters use very few kilowatt hours and even refrigerators are energy friendly. This is especially true of newer refrigerators, which consume only 30 kilowatt hours per month.
Do Fans Use a Lot of Electricity? Running a fan takes a lot less electricity than running an air conditioner; ceiling fans average at about 15-90 watts of energy used, and tower fans use about 100 watts.
As shown in Figure A, the average combined monthly water and wastewater bill for 4,000 gallons is $61.24 excluding utility taxes. There is a wide distribution of residential water and wastewater bills at the 4,000-gallon usage level.
In the September 2019 report FMEA compiled the residential utility rates from across the state which ranked Gainesville the highest for any municipality at approximately $154 per 1200 kilowatt hours.
Designed with the State of Michigan to manage the demands of an increasingly electrified world, the Time of Day 3 p.m. - 7 p.m. rate lets you take advantage of lower rates, so we can manage energy supply. When you have more choice and more control, everyone wins.
Service will be available at a discount rate during the off—peak period, which includes all hours except the hours Monday through Saturday between 7:00 a.m. and 10:00 p.m. The off—peak demand rates are 60¢ per KW of demand for each KW the off—peak demand exceeds other recorded monthly demands.
Electricity is often cheaper late at night or early in the morning, so if you run your heaviest loads during those times, you'll be able to save on your electric bill.
This special rate is available to residential customers who choose to have their energy usage metered based on our On- and Off-Peak hours. On-peak hours: 11 a.m. to 7 p.m. Monday through Friday. Off-peak hours: 7 p.m. to 11 a.m. Monday through Friday, and all day Saturday and Sunday.
DTE Energy said customers can save money by shifting their energy use to before 3 p.m. or after 7 p.m. Monday through Friday. Customers are currently paying between 16.9 cents and 18.6 cents per kilowatt hour all day, every day. With the new plan, customers will pay 15.45 cents per kilowatt hour during off-peak hours.
Electricity costs fluctuate every hour of the day. During the week, especially on hot summer days and dark winter evenings, costs increase due to high demand. On nights and weekends (and some holidays), demand for electricity goes down, which means so does the cost.
The off-peak period occurs daily from 7 p.m.-1 p.m. the next day. Electricity is cheapest during this period. Running your large appliances during this time will cost the least amount of money. Electricity is more expensive on weekdays during mid-peak (1 - 3 p.m.) and on-peak (3 - 7 p.m.) hours.
Off-peak hours are any time of the day other than on-peak hours from 4 to 9 p.m. or 5 to 8 p.m. By understanding when your on-peak hours are, you can shift your energy use to times when energy is cheaper to save money on your monthly bill.
Every day of the year from 11 p.m. – 7 a.m. It's cheapest for Georgia Power to produce electricity during these hours so the savings are passed on to you. About 33% of the hours in a year fall in the Super Off-peak time period and it's the lowest price.
Washington Residential Time of Use plan (Schedule 19)
You can save money by shifting your energy use away from on-peak hours every day during the summer and winter months. From June through September, on-peak hours are 2-10 p.m. For October through May, on-peak hours are 6-8 a.m. and 4-10 p.m.
For some customers, the peak period will be noon to 8:00 p.m. For others, it will be 2:00 p.m. to 10:00p. m. The off-peak period includes all other hours, including all day on weekends and certain holidays.
Introduction: My name is Eusebia Nader, I am a encouraging, brainy, lively, nice, famous, healthy, clever person who loves writing and wants to share my knowledge and understanding with you.
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