Grappling with high electricity bills throughout the year? If you are, you will be pleasantly surprised to know that there is a way to reduce your electrical bills without compromising on your extensive usage of electrical appliances.
That’s right! Understanding the time-of-use (TOU) rates is one thing that will aid you in reducing your electricity bills. Read on to learn everything about times-is-use rates, how they work, their benefits, and how to utilize them.
You will also learn some cost-saving tips other than times-of-use rates. So, read till the end!
What is Time-of-Use (TOU) Rates?
Your normal way of paying electricity bills is that you calculate the electricity rate with the amount of electricity you have consumed for a month. Now, this standard bill method involves your electricity usage throughout the month.
Time-of-use rates, on the other hand, are a different form of billing method. They consider the demand for electricity throughout the day. For example, during peak hours when electricity is being used at its highest, electrity rate will be higher.
When electricity is used less in off-peak hours, electricity rate is less. Time-of-use rates is, thus, a pricing scheme that energy companies offer. They are a mode of encouraging users to use electricity during the times of the day when the electricity rate is low.
How Do Time-of-Use Rates (TOU) Work?
With their focus on differing electricity rates according to their times of demand, energy companies divide a day into three time periods to implement the time-of-use rate.
- Peak Hours
Peak hours in the time-of-use rates plan refers to the time of the day in which you use the most electricity. This is normally the time from 4:00 p.m. to 9:00 p.m. because this is when people come home from offices.
They then use various electrical appliances to cook dinner, do some house chores, and engage in other family bonding activities such as watching TV together. This time, thus, using the most electricity is termed as the peak hours. During this time, the electricity rate is the highest.
- Off-Peak Hours
Off-peak hours refer to the time of the day when you use the least electricity. For example, overnight and early mornings.
These are times when you are usually sleeping; therefore, there is a lack of electrical appliance usage. Thus, the electricity rate during these times is lower than peak hours.
- On-Peak Hours
The on-peak hours are the hours between peak hours and off-peak hours. These are the mid-morning and the mid-afternoon times when electrical appliances are in use but not to the extent of their usage during peak hours.
Therefore, the electricity rate during on-peak hours is less than that of peak hours but more than that of off-peak hours.
Benefits of Time-of-Use Rates (TOU)
There are several benefits you will reap by utilizing the time-of-use rates and adjust at what time you do what electrical task.
- Save Money on Electricity
You can reduce the money spent on your electricity bills by moving the use of your major electrically used appliances during off-peak hours or on-peak hours.
With this, you are not limiting any of your elctrically used activities, just shifting them to a different time as it suits you. You will be able to utilize the lower electricity rate during those times.
- Less Strain on the Grid
If you make sure to utilize the off-peak electricity hours for your electricity-intensive tasks, you are taking the load off of the grid during peak times.
With this, there will be less pressure on power plants. This could, in turn, also potentially lower overall energy costs.
How Can I Save on My Electricity Bill with TOU?
Now, moving on to the main question: how to utilize time-of-use rates so that you are less reliant on the peak hours for all your tasks involving electricity. There are several ways in which you can shift your essential tasks to another timing such as off-peak or on-peak hours.
For instance, you can try to:
- Do not use your washing machine for laundry during peak hours. Wash your laundry before 4:00 p.m. or after 9:00 p.m.
- Charge your electric vehicles during off-peak or on-peak hours.
- Charge other electrical appliances, such as gaming consoles or printers, early in the morning or late at night.
- Run your dishwasher early in the morning or late at night.
Other Tips for Saving Cost
Besides shifting the time of your activities using electrical appliances, there are also other effective ways of reducing your electrical costs.
1. Use Energy-Efficient Appliances
Do you still use older models for all your electrical appliances? Well, it is time for you to change or upgrade these appliances. Look for modern models of electrical appliances, such as refrigerators and air conditioners, that are ENERGY STAR certified models.
These are models with features that reduce energy consumption while working. Through these energy-efficient features, you can save on your electrical costs while also following the time-of-use rates.
2. Sealing Air Leaks
Another thing you can do is seal any and all air leaks around your windows and doors to prevent any warm or cool air from escaping your house in winter and summer, respectively.
It is because of these leaks that warm or cold air of home goes out and your heating or cooling systems will work harder to make your home warm or cool again.
It, thus, results in higher electricity bills. So seaking any such air leaks will prevent high electricity bills.
3. Using Solar Generator Kits
Using solar generator kits for your home is yet another effective method of reducing your electricity bills besides following the time-of-use rates.
Since they use solar power to charge electrical appliances, you can significantly reduce your electrical bills even if you don’t follow the time-of-use rates.
When considering solar generator kits, BLUETTI offers some of the best in the market. Two of them are the following:
- BLUETTI AC300 + B300 + PV350
The BLUETTI AC300 + B300 + PV350 is a powerful and robust solar system that guarrantees you clean power and it lowers your electricity bills even without using the time-of-use rates.
Key Features:
3,000W AC Pure Sine Wave Inverter: This solar generator kit can provide you 3,000W power consistently. All that power is clean and stable electricity so you don’t need to worry about it damaging any of your appliances.
6,000W Surge Power: It can handle a surge power of upto 6,000W; this is especially useful for those appliances which require a higher starting wattage.
3,072Wh Capacity: It has a capacity of 3,072Wh - sufficient to run all your home appliances withour any issues. Even more amazing is that this capacity is expandable with up to four B300 for 12,288Wh.
LiFePO4 Battery: This system has the LiFePO4 battery in it which is known for its long duration and reliability. Also, it can be fully charged and discharged over 3,500 times before its capacity decreases to 80% of its original state.
24/7 EPS Home Backup: The 24/7 EPS home backup allows the system to automatically switch to battery power mode in case of a power outage, ensuring that you have a continuous power supply without any interruption.
- BLUETTI AC240 + B210 + PV350
The BLUETTI AC240 + B210 + PV350 is another amazing solar power system you will love for its environmental resistance and versatile features. Your electricity bills will definetely reduce with this even without following the time-of-use rates.
Key Features:
2,400W AC Output: This system will provide you with 2,400W of continuous and clean power supply for your home electrical appliances.
3,600W Power Lifting Mode: This system can handle higher loads of power up to 3,600W. This way, you can smoothly power up your appliances requiring higher starting wattage.
IP65 Water & Dust-Resistant: This system is made to be highly water and dust resistant. Therefore, even if you place it outside for longer periods, it will suffer no damage. Tempting, isn’t it?
Parallel Connection: With this system, you can use parallel connections to double both its capacity and output. You will have 20,272Wh of energy storage and 4,800W of power at 120V, ideal for any situation requiring high power.
0-80% Recharging in 45 Minutes with 2,200W AC Input: You can rapidly restore power to your system when connected with a 2,300W AC input. That will recharge it from zero to 80% in just 45 minutes.
Also, find out the secret to choosing the best battery generator for home.
4. Keep Unused Appliances Unplugged
Even if you are not using electrical appliances but leave them plugged in anyway, you should stop doing this. Remember to always unplug any electrical device you are not using.
This is because there is some power that appliances still use while being plugged. It is called standby power. While it is not much, when added up over the course of a month, it is a significant amount.
So, besides following time-of-use rates, remember to unplug any unused appliances.
5. Thermostat Adjustment
Adjusting your thermostat setting a little lower in winter and a little higher in summer is another small but effective method of reducing your power consumption and thus lowering your electricity bills.
It is because by doing so, you create a gap between the desired indoor temperature and the actual temperature. Thus, your warming or cooling systems will not work as hard to create the right temperature in your home. It will lead to saving electricity and, thus, your money.
Do I Have to Switch to a TOU Rate?
Switching to time-of-use rates is not mandatory; it is entirely your choice. If all of your chores involving electrical usage are done during peak hours and you don’t have time for them any other time, changing to time-of-use rates won’t benefit you.
However, if you want to reduce your electrical bills and you feel like you can adjust your chores around, you should definitely consider following time-of-ues rates. It will only benefit you in the long run.
Final Thoughts
Having realized the potential saving ability of following time-of-use rates for your electricity bills, you should definitely opt for it if you can.
Other than this, there are other options available as well, among which opting to buy solar generator kits is the most effective in greatly reducing your electrical bills. You can buy the BLUETTI AC300 + B300 + PV350 and the BLUETTI AC240 + B210 + PV350 for it.
