What Is Off-Peak Vs Peak Time for Electricity?

In many states of the US, electric companies are introducing time-of-use (TOU) plans. These plans charge consumers different electricity rates during different times of the day, offering an opportunity to save a significant amount of money on their electric bills.

Two key concepts in this regard are Off-peak and peak hours. Some electric companies have also introduced a third term called Super off-peak. These are durations when electricity demand and prices vary greatly.

Read the article to gain a comprehensive understanding of these concepts, how they affect your electricity bills, and, most importantly, how you can control and save on your electricity costs during off-peak hours. 

What Are Electricity Time Of Use (TOU) Plans?

In the US, electricity is provided to consumers with different plans. The two most widely used plans are fixed-rate and time-of-use plans. Fixed-rate plans have a set electricity rate per kWh, and their prices do not change. 

However, in the case of TOU plans, electricity rates vary at different intervals of the day. Depending on this,  a day is sub-categorized into peak hours, off-peak hours, and super-peak hours. You can find the details for each below. 

Additionally, its important to mention here that rates for TOU plans are low as compared to fixed-rate plans.

What Are Electricity Peak Hours?

Peak hours are simply the rush hours of electricity. These are the times of day when the demand for electricity and its price per kWh are the highest. Peak hours can vary depending on multiple factors, such as your location, the season of the year, and your electric company.

The peak hour strategy is mainly used across the US to balance the availability of electricity with its demands. This high pricing curtails the burden on the grid when electricity use is high.

Peak hours usually occur between 5 to 10 p.m. While continuous operations for appliances like refrigerators and security systems are necessary, it is recommended that other household chores like dishwashing and laundry be avoided during these times.

What Are Electricity Off-Peak Hours?

Off-peak hours are the opposite of peak hours. During these hours of the day, the demand for electricity and its prices are low. This is usually the time when people are mostly not home and attending their everyday official commitments to schools, businesses, or others. This eventually lowers the consumption of power and its demand.

Off-peak is more suited to completing your energy-intensive tasks. Unlike peak hours and super peak hours, you do not have to pay extra for energy expenditure or sacrifice your rest hours.

What Are Electricity Super Off-Peak Hours?

Some electric companies have also introduced super off-peak hours for further energy conservation and to provide more choices for consumers. As their name suggests, during these periods, the electricity rate and consumption are at their lowest.

However, this time usually starts late at night and lasts until early morning, when most people are sleeping, and power demands are minimal. Utilizing this time could help you save significant amounts on your monthly electric bills but you have to work during these unusual times.

Why Do Electric Companies Use Peak And Off-Peak Hours?

Electric companies are liable to provide a specific amount of electricity, known as the base load, to the grid, which is eventually distributed to consumers. However, there are times during the day when everyone is at home, and the demand for electricity increases exponentially.

To meet these high power requirements, electricity companies either invest to boost production capacity or buy power from other sources. 

Increasing production capacity is useless when demand is low, so buying from other sources, though it comes with high prices, seems more feasible for electric companies. This causes electricity tariffs to be high during peak hours, ultimately managing the load.

Besides making electricity available for every consumer, these time-based plans also encourage people to use renewable energy. For example, California is shifting from conventional energy production with fossil fuels to renewable energy, such as solar energy. 

During peak hours, which usually start in the evening and last until night, solar radiation is not available to offer a continuous power supply. But, because the power demand increases during these times, companies may have to revert to fossil fuels to fill this supply-demand gap. This increased rate during peak hours keeps the energy demand at a minimum and helps avoid the use of fossil fuels.  

However, the ultimate goal of peak and off-peak hours is to ensure the availability of power during high demands, keep the dependency on fossil fuels at the lowest, and avoid scenarios like blackouts due to high-strain on grids.

When Are Peak And Off-Peak Hours Of Electricity? 

Peak and off-peak times vary according to your location, season of the year, and electricity provider. Generally, electricity providers analyze consumers' consumption patterns and set TOU accordingly.

However, for your easy understanding, you can look into your surroundings and see when most of the people are at home and using electricity.  Further, below are two tables for peak and off-peak hours for famous electricity supplier companies depending on your time zone.

Peak And Off-Peak Hours For Different Electric Companies

Peak And Off-Peak Hours For Different Time Zones

What Is The Cost Difference Between Peak And Off-Peak Hours Of Electricity?

It is obvious that peak and off-peak hours have different electricity rates. But how much of a cost difference do they have? Well, there are no simple numbers to answer this question, as this again depends on your location, the mode of energy you are consuming, whether it is fossil fuels or renewables, and your electric company.

However, below is an example of a California electric company plan that gives you an idea of the cost difference between peak and off-peak hours. 

For its E-TOU-C plan, in summer, the off-peak rates are between 33 and 42 cents per kWh, and peak rates are between 40 and 49 cents. For winter, off-peak electricity rates are between 28 and 37 cents, and peak rates vary between 30 and 39 cents per kWh.

How to Save Electricity Cost? 

With the burgeoning electricity prices, electricity conservation has become a necessity. For individuals with TOU plans, one way out is to align their power consumption accordingly with peak and off-peak hours. 

But this is not practicable for many households. If this is the case, shifting towards solar is the best and most recommended option. This will not only help you achieve your saving goal but also allow you to go completely off the grid. 

Also, there are some concerns about the solar system’s ability to fulfill a house's power needs. But with advancements in battery and solar panel technology, a solar system can effortlessly fulfill a house's power needs. 

Below, we have carefully catered two BLUETTI solar backups that can effectively shield against peak electricity hours.

Electricity Cost Saving For A Small To Medium House With BLUETTI AC300 + B300 + PV350

This 3kW power solar inverter, which is attached to B300 batteries and PV350 solar panels, is enough to meet the power needs of all your home appliances. Its 6kW surge power makes it compatible to run any appliance, whether it's a small laptop or as big as an AC.

With its 3072Wh LiFePO4 battery, it offers a continuous power supply during peak hours. Further, if you want to go completely off-grid, you can expand this capacity to up to 12288 Wh with additional B300 batteries.

But that is not all, B300 promises to never let you run out of power. For this, it can be charged through 7 different streams including AC, solar, generator, car battery, and AC+Solar. 

Still confused to make a purchase, don’t worry. AC300 comes with a money back guarantee that means if you do not find this product fit for you, you can return the unused product within 30 days of your purchase. 

Electricity Cost Saving For A Medium To Large House With BLUETTI EP500 + 3*PV200

Whether you need a power backup for your home or off the grid camping trip, EP500 can be your go to solution. With its extensive 5120Wh LiFePO4 battery, it keep your appliances running for hours and hours. Further, batteries 6000+ charge cycles ensures a life span of more than 20 years.

The unit comes with integrated wheels that make its portability very easy. Further, its slim design makes it perfect for your RV or camping tent. It’s 10-plus output ports make it compatible with all your home appliances.

For smooth operations and enhanced safety the unit has a Battery Management Sytem and a dual core microcomputer which helps your run the unit with Wifi, Bluetooth, and BLUETTI smart app. 

Final Words

Understanding of peak and off-peak hours can help you save significant amounts on your monthly power bills. However, strict alignment with these schedules requires careful planning and extra effort. Going solar is the best solution to this. BLUETTI solar backups are cost-effective, reliable, and efficient. You can review BLUETTI’s vast product list to choose a system that aligns best with your needs and goals.