July 30, 2024
Do you use off-peak electricity hours?
In a traditional electricity plan, you pay a fixed rate for your electricity no matter when you use it. However, time-of-use (TOU) plans work differently: the cost of your electricity varies depending on when you use it. Under these plans, your utility company sets different rates for peak hours, off-peak hours, and sometimes even super off-peak or partial-peak hours.
Time-of-use plans are becoming more common among utility providers. They can be particularly advantageous if you’re considering installing solar panels or a battery at home, making such investments even more rewarding.
Your electric bill is calculated based on the amount of electricity you use, measured in kilowatt-hours (kWh). With TOU rate plans, your utility charges more for electricity used during peak hours in the afternoon, when demand is high. So, you’ll find the lowest rates during off-peak hours when demand is lower.
Some utility companies offer more than one time-of-use rate plan or option. These TOU rate plans may have different hours as their peak hours or may even include some “partial-peak” hours that charge somewhere between peak and off-peak.
If you have the choice to enroll in a TOU plan, you’ll pay less for electricity during off-peak times (typically at night), but you’ll face higher costs when demand is high.
Talk to your provider or electrician to see if a TOU plan is right for you!