How Time-of-Use Electricity Plans Can Save You Hundreds Annually

 Best Time-of-Use Electricity Plans: How to Save on Your Energy Bill

Are you tired of high electricity bills? Switching to the best time-of-use plans could be the solution. These plans charge different rates based on when you use energy, helping you save by shifting usage to cheaper off-peak hours.

In this guide, we’ll break down how time-of-use electricity plans work, their pros and cons, and how to maximize savings.

What Are Time-of-Use Electricity Plans?

Time-of-use (TOU) plans are pricing structures where electricity costs vary by time of day. Instead of a flat rate, you pay:

• Higher rates during peak hours (when demand is high, like evenings).

• Lower rates during off-peak hours (overnight or midday).

These plans encourage energy use when the grid is less strained, reducing costs for both you and utility companies.

How Do Peak and Off-Peak Hours Work?

Most best time-of-use plans follow a similar structure:

• Peak Hours (Expensive): Typically 4 PM – 9 PM on weekdays.

• Off-Peak Hours (Cheapest): Usually late night to early morning (12 AM – 6 AM) and sometimes midday.

• Shoulder Hours (Moderate): Between peak and off-peak times.

Example: Running your dishwasher at 8 PM might cost 30 cents/kWh, but waiting until 10 PM could drop it to 10 cents/kWh.

Pros & Cons of Time-of-Use Plans

✅ Advantages

✔ Lower bills if you shift high-energy tasks (laundry, charging EVs) to off-peak times.
✔ Environmentally friendly—reduces strain on the power grid.
✔ Works well with smart homes (programmable thermostats, delayed-start appliances).

❌ Disadvantages

✖ Higher costs if you use energy during peak times (e.g., air conditioning in summer evenings).
✖ Requires habit adjustments (not ideal for those with rigid schedules).

Who Should Consider Time-of-Use Plans?

These plans are best for:

• Night owls or early risers (who use power mostly during off-peak times).

• EV owners (can charge cars cheaply overnight).

• Smart home users (can automate energy use).

If your household is active mostly during peak hours, a flat-rate plan might be better.

How to Maximize Savings with Time-of-Use Plans

1. Shift major appliances (washer, dryer, dishwasher) to off-peak hours.

2. Pre-cool or pre-heat your home before peak rates kick in.

3. Use smart plugs & thermostats to automate energy use.

4. Monitor your usage with your utility’s app to track savings.

Final Thoughts

The best time-of-use plans can lead to big savings, but they require flexibility. If you can adjust your energy habits, these plans could cut your bill by 10-30%.

Ready to switch? Compare providers in your area and start saving today!