What's the Cheapest Time to Use Electricity?

With electricity prices skyrocketing, everyone is endeavoring to lower their bills. However, understanding when it’s cheapest to use electricity could be one possible way out.

The electricity we use at home does not have a constant rate and it keeps changing throughout the day. These variations are subject to supply and demand fluctuation, which eventually changes electricity tariffs depending on the time of use, often called TOU. 

This article is a comprehensive guide to help you find the cheapest electricity rates. We will discuss when electricity is cheapest during the day and year, why its rate changes, and how you can minimize your electricity costs.

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When Can I Get the Lowest Electricity Rates?

To understand when you can get the lowest electricity prices, it's important to first understand how the energy market works. 

Electricity providers are encouraging consumers to change their consumption patterns, so the per-kWh prices are determined based on Time Of Use (TOU). This has made electricity rates variable, which are higher when demand is high and lower when demand is low. The rule is the same whether about per-day fluctuations or per-year changes. 

Electricity prices are usually lower in the afternoon and late at night due to fewer supply demands. For a comprehensive understanding, the peak and off-peak factors that cause power rates to fluctuate are discussed below. 

What Is The Difference Between Peak vs. Off-Peak Electricity Rates?

Peak Hours is the time of day when electricity demands are at their highest. However, these hours do not fall within the same time schedule for all locations and change with seasonal variations and from place to place. 

During this time, you are charged additional, and your per-kWh electricity rates are at maximum, referring to the term “peak pricing.” The additional charges you pay also vary according to your energy plan and your energy provider.  

Power combustion patterns in a society are usually the same so by looking at your own power usage, you can easily find the peak hours in your area. Generally, this period lies between 7 to 9 a.m. in the morning and 4 to 9 P.M. at night.

Conversely, off-peak hours are opposite to peak hours. During this time of day, electricity demands are low, and so are rates. Usually, individuals are at work from 10 A.M. to 4 P.M. You can analyze your own routines to get a rough guess of off-peak hours in your area.

Some utility providers introduce another phenomenon related to this called super peak hours. During these hours, electricity demands are extremely low. These hours usually start at midnight and go until 6 a.m.

What's the Cheapest Time to Use Electricity?

From the above explanation of peak and off-peak hours, you may probably have an idea about what time of day you can get the cheapest electricity. With TOU plans, you are charged for every kWh of electricity you use, and the rates vary depending on the time of day. 

For example, for those living on the East Coast, in summer, from 5 P.M. to 2 A.M., the weather temperature will be moderate. Eventually, people will use fewer cooling appliances, resulting in low electricity demands. During these hours, you will find your power tariffs at the lowest.  

By avoiding using electricity during peak hours, you can significantly cut your energy bills. The below tables mention the peak hours for the top US states depending on power consumption. 

Keep in mind that the above-mentioned peak hours are only for weekdays. The schedule could be different for weekends. Additionally, these timings could vary depending on your electricity provider, so it is recommended that you check the schedule of your specific electricity company.

What Is Cheapest Electricity Plan?

Electricity utilities offer various plans, each with its own offerings. Choosing the cheapest electricity depends on individual preferences. To get a comprehensive idea about these plans, review them below.

TOU Plan

Time-of-use plans are simply based on peak and off-peak hours. The tariffs will be high during peak hours and low during non-peak hours.

Tiered Plans

These plans charge consumers depending on their monthly power use. The rates increase if you consume more power than a set limit. For example, if your allowed limit is 900 kWh per month and you are consuming 1200 kWh, the rates for an extra 300 kWh will be higher. Some companies also allow consumers to avail themselves of the benefits of TOU rates with tiered plans.

Solar Based Plans

These plans are for homes with solar installations. Multiple factors, such as peak sunlight hours when solar panels produce maximum power, net metering, and the type of solar setup, affect the contract terms of such plans.

Also, if you have a solar setup in many states of the US, like California, signing up for TOU rates is necessary.

Other Plans

These are specialized programs furnished by some utility companies. For example, they could include incentives for using less than a fixed amount of electricity per month or bonuses for charging EVs during off-peak hours. You can consult your energy company to get details about such plans. 

Does Electricity Rates Change With Seasons?

Summer and winter are seasons of extreme heat and extreme cold, respectively. In summer, the use of air conditioners and other cooling devices is at its peak, and in winter, the use of heating appliances burgeons. 

If you ever had a chance to look at your appliance's wattage requirements, you would find that heating and cooling devices use around half of your total energy consumption. So household electricity consumption is at its peak in summer and winter.

Conversely, the temperature remains average in the fall and spring, negating the need for cooling and heating appliances eventually minimizing the home’s power requirements.

So, with the backdrop that power rates are subject to their demands, they change with seasons, too. 

Which Season Of Year Has Lowest Electricity Rates?

As discussed above, electricity demands are lowest in spring and fall, so these seasons have the lowest electricity rates. However, it is important to understand that a change in rates does not necessarily mean that you can use more electricity for the same amount. It's about a change in peak and off-peak hours. 

For example, in summer and winter, if the peak hours are between 5 p.m. and 10 p.m., in spring and fall, they would be between 7 p.m. and 9 p.m. Eventually, with fewer peak hours, you will have more freedom to use electricity at the lowest rates.

Tips for Saving Electricity Cost 

Unlike in the past, saving electricity costs does not come with sacrificing comfort. Instead, by modernizing your appliances and applying some energy conservation practices, you can effortlessly save on your energy bills. Here’s how you can do this.

Improve Your HVAC

In terms of energy usage, HVAC (heating, ventilation, and air conditioning) are the most energy-consuming appliances. Making them energy efficient could help you save around $120 to $150 on your monthly energy bills.

Insulations

Insulating is an important factor that is crucial to saving on electricity costs. An insulated home requires significantly lower energy to heat and cool it in summers and winters, respectively. The primary house areas where insulation is necessary include crawlspaces, floors, basements, attics, and walls.

Using Solar Generator Kits

The most recommended option to lower your energy bills is using a solar generator kit. This one-time investment not only helps you save significant amounts for years but also offers freedom from grid power outages and fluctuations in electricity costs. 

However, choosing a cost-effective and reliable solar generator is a daunting task. Thus below are the two best offers from BLUETTI, you can review them to choose what suits you the best.

BLUETTI AC300 + B300 + PV350

This small portable unit is best for fulfilling the power needs of a medium-sized home, whether grid-tied or off-grid. It is a pure sine wave inverter with an output capacity of 3 kW and a surge of 6 kW. Further, this modular unit comes with a 3072 Wh LiFePO4 battery, which can be expanded up to 12288 with 4 B300 batteries, depending on your needs.

It can help you with the lowest power bills by providing a continuous power supply for all your home appliances at peak hours with its 9+ output ports. Additionally, to ensure you never run out, it has 7 charging streams, including both solar and wall outlets. 

So, if the solar panels are not working, you can charge the system batteries from conventional grid power during off-peak hours and later use them during peak hours. Lastly, it comes with a PRICE MATCH GUARANTEE, ensuring you will never find such a system in low price than this.

BLUETTI AC240 + B210 + PV350

If you need a moisture, dirt, rain, and mud-free unit, AC240 is here for you. With its groundbreaking IP65 water resistance, this portable unit could be your reliable partner in all your adventures. 

Its 2.4 kW output capacity with up to 3.6 kW powerlifting mode is enough to run all your necessary home appliances simultaneously, whether at home or off the grid. Its built-in battery capacity is 1536 Wh which can be expanded up to 10136Wh with 4 B210 batteries.

What makes it special further is its fast charging. The system needs only 45 minutes to charge its batteries from 0% to 80%. This means with solar panels, only one hour of sunlight will be enough to keep your appliance running for hours and hours. 

AC240 also features PRICE MATCH GAURANTEE, so rest assured that you will get the best deal in town.

Using ENERGY STAR Appliances

Energy Star is a government organization that analyzes different electric appliances and recommends those that are environment-friendly and cost-saving. These appliances may have higher upfront costs, but their energy savings can effectively lower your monthly power bills.

Go For Energy Audit

Lastly, if your energy bills are high, you must undergo an energy audit. This includes an overall inspection of your house, which includes checking the construction of your house, your appliances, their energy requirements, the insulation of your home, and so on. 

If you hire a professional for this purpose, they will provide you with a comprehensive report that includes all the reasons for your high energy bills and how you can counter them. However, you can also do this at home with simple DIY approaches. 

Final Words

The cheapest time to use electricity is when demand is at its lowest or during off-peak hours. This is usually in the mornings until the afternoon and late at night. However, to find the cheapest time to use electricity in your area, it is recommended to consult your energy provider because the price of electricity varies according to your geographical location and energy provider.

Further, to completely cut off your energy bills, BLUETTI solar backups are best to rely on. They require minimal initial costs and could be your personal grid with free energy for more than a decade.