Time of Use Rates

Time of Use (TOU) energy rates are a pricing structure that aims to reflect the varying costs of electricity production and delivery throughout the day. Unlike traditional flat-rate billing, TOU rates offer consumers the opportunity to save money by adjusting their energy consumption habits to coincide with periods of lower electricity demand.

What are Time of Use energy rates?
Time of Use energy rates involve dividing the day into distinct periods, each with its own associated electricity price. These periods are typically referred to as peak, and off-peak periods. The goal is to encourage consumers to shift their energy usage from peak periods, when electricity is most expensive, to off-peak periods.

Time of Use energy rates offer a dynamic and responsive approach to electricity pricing, encouraging consumers to be more mindful of their energy consumption habits. By understanding the peak and off-peak periods, and employing smart strategies to optimize energy usage, consumers can not only reduce their electricity bills but also contribute to a more sustainable and efficient energy infrastructure.

Peak and off-peak periods:
• Peak periods: These are periods when electricity demand is at its highest, often during the late afternoon and early evening when people return home from work. Electricity rates are highest during these hours to reflect the increased strain on the power grid.

• Off-peak periods: These are periods when electricity demand is lowest, usually during late night or mid-morning. Off-peak rates are lower, encouraging consumers to perform energy-intensive tasks during these periods.


Benefits of Time of Use energy rates:
• Cost savings: TOU rates provide an opportunity for consumers to reduce their electricity bills by shifting energy-intensive activities to off-peak hours.

• Grid optimization: By incentivizing consumers to use electricity during off-peak periods, TOU rates help balance the load on the power grid, reducing the need for expensive infrastructure upgrades to meet peak demand.

• Environmental impact: Offsetting energy consumption to off-peak hours can also contribute to environmental sustainability by promoting the use of renewable energy sources during periods of lower demand.


Optimizing TOU energy rates:
• Time-shifting activities: Perform energy-intensive tasks such as laundry, dishwashing, and charging electric vehicles during off-peak hours to take advantage of lower rates.

• Smart home technology: Utilize smart thermostats, smart appliances, and other automated devices to schedule energy-consuming activities during offpeak periods.

• Energy monitoring: Stay informed about your energy consumption patterns to make informed decisions about when to use electricity and minimize usage during peak periods. This can be done through our SmartHub app.