Time-of-Use Electricity Plans: How to Save

Most households pay a flat rate for electricity regardless of when they use it. But not all power is created equal running your dishwasher at 6 p.m. costs utilities far more than running it at midnight. That’s where a time-of-use plan comes in.

Instead of charging the same rate all day, these plans vary prices based on peak hours (when demand is high) and off-peak rates (when demand is low). For households willing to shift some of their electricity use, this can translate into real savings. Pairing a time-of-use plan with strategies to reduce electricity consumption like LEDs, smart thermostats, and energy monitors can maximize both savings and efficiency.

What Is a Time-of-Use Plan?

A time-of-use (TOU) plan sets different electricity prices for different times of the day. Utilities design these plans to encourage people to use energy when demand is low, balancing the grid and reducing strain during busy periods.

• Peak hours – Typically late afternoon and early evening (e.g., 4–9 p.m.), when demand is highest. Rates are most expensive during this time.
• Off-peak hours – Late night and early morning, when fewer people are using electricity. Rates are lowest here.
• Mid-peak hours – Transitional times with moderate pricing.

How Do Off-Peak Rates Work?

Utilities and providers often cut rates by 30–50% during off-peak hours. For example:

• Running your washing machine at 7 p.m. may cost 25¢/kWh.
• Running it at 11 p.m. might cost 12¢/kWh.

The electricity is the same, but timing determines your cost.

Who Benefits Most from TOU Plans?

TOU plans are especially effective if:

• You can schedule appliances like dishwashers, laundry machines, and EV chargers.
• You work from home and can shift some electricity use to midday.
• You’re comfortable making small habit changes to avoid peak hours.

Households with flexible routines often save the most.

Scheduling Appliances for Savings

Smart technology makes it easier than ever to take advantage of TOU pricing.

• Dishwashers and washing machines – Use delay-start features to run cycles overnight.
• Electric vehicle charging – Schedule charging during off-peak windows.
• Smart thermostats – Pre-cool or pre-heat your home before peak hours begin.
• Water heaters – Some models can store hot water during off-peak times.

Even modest adjustments, like waiting until 9 p.m. to start laundry, can cut monthly bills by double-digit percentages.

Time-of-Use vs Flat-Rate Plans

Here’s a side-by-side comparison:

Things to Watch Out For

While TOU plans can save money, they’re not for everyone.

• Inflexible schedules – If your family uses most electricity in the evenings, savings may be limited.
• Lifestyle considerations – Cooking, laundry, and other tasks may need to shift to off-peak hours.
• Seasonal differences – Some providers set different peak windows for summer vs winter.

Before enrolling, review your last year of electricity usage to see when your household consumes the most power.

Combining TOU with Energy-Saving Habits

A TOU plan works best when paired with efficiency measures to reduce electricity consumption:

• Replace bulbs with LEDs to lower baseline usage.
• Install smart thermostats to manage heating and cooling around peak hours.
• Unplug devices or use smart plugs to cut phantom loads.
• Monitor habits with energy monitors for real-time insights.

This combination ensures you’re saving both by using less electricity overall and by paying less for the electricity you do use.

Final Thoughts

A time-of-use plan can be a powerful tool for households willing to adjust routines. By shifting tasks like laundry, cooking, or EV charging away from peak hours and into cheaper off-peak rates, you can significantly cut your monthly bill. When paired with energy-efficient habits, TOU plans not only reduce costs but also support a more balanced and sustainable grid.

Want to Save More on Your Energy Bill?

Explore smarter electricity options today. Visit Get Home Utilities electricity page to see if a time-of-use plan is available in your area and how much you could save.