With TOU plans, electricity rates depend on the time of day that energy is pulled from the grid. These peak and off-peak hours can vary by utility company and season. Shifting your energy use to off-peak times saves you money because power is cheaper when fewer people use it. This is also good for the environment and your community.
You’ll Have More Control
With TOU electric company Dallas charges you different rates depending on when you use power. That’s because the rates reflect the electricity and energy demand cost. During peak times, like the afternoon of a hot summer day when families come home and fire up all their appliances, it costs more to produce electricity. And because electricity demand is highest during these peak hours, utilities charge you a higher rate to help offset this increased cost. This structure allows you to take control of your energy usage by strategically consuming during off-peak hours. For example, using an appliance with a built-in timer to run your dishwasher, washing machine, or AC during off-peak hours could save money and reduce your bills. It’s also a great way to support the local grid since it allows your community to shift electricity consumption away from peak periods. While the details of a TOU plan will vary by region and electric company, most TOU plans will include separate rates for summer and winter with peak periods that typically extend from late afternoon to evening on weekdays. Check out your utility company’s website for your TOU schedule and rate. Then, you can explore how your new rate plan can benefit you! Sense will even provide notifications throughout the day as your energy rates change, helping you stay on top of any changes in TOU.
You’ll Save Money
Electricity rates are typically higher during peak demand times, like late afternoon and evening. Utility companies have to spend more on generating energy during these high-demand hours because they must meet electricity usage from all customers at once. When demand is low, like at night or early in the morning, the electricity rate is lower too. With TOU programs, you pay less when you shift your electricity usage to these off-peak times. For example, running your washing machine or dishwasher at 9:00 instead of 6:00 pm saves $12 annually. Over time, these small savings add up and help offset your electricity costs. Many of your customers may be open to trying a TOU program but need to understand the benefits and how it works. Educating them on their options, such as TOD Rate, Super Off-Peak Rate, and peak time discount, can help them make the best decision for themselves and their family. For example, some customers have found that running their large appliances (such as laundry, electric car charging, and kiln firing) during off-peak hours can significantly reduce their electricity costs without sacrificing the efficiency of these devices. This is because they can still run these devices when the electricity cost is lowest but avoid paying higher weekend and holiday rates. The more electricity they can shift from peak to off-peak hours, the better their results will be.
You’ll Help the Environment
Many utility customers only see one price per kilowatt-hour (kWh) for electricity and have yet to learn how much it costs to generate that energy daily. With time-of-use rates, homeowners can see those costs rise and fall throughout the day, encouraging them to shift their usage during off-peak periods. This pricing structure is designed to better align the cost of residential electric company Dallas with the actual generation price — and reduce overall demand on the power grid. During peak hours, which typically run from 4–9 pm on weekdays, it can cost more to access the grid because there’s more significant pressure on the system. During off-peak hours, on the other hand, it can be cheaper to get the energy you need from the grid because it’s less expensive to produce the extra power to meet demand. It also helps the environment by shifting the load away from fossil fuels needed to meet demand during peak times. When paired with solar panels, TOU rates can be an even more effective way to save money on your electric bill. You can maximize your savings by using the solar energy you collect daily to power your home and storing that electricity in a battery at night when TOU prices are highest. By doing so, you can successfully evade peak-demand TOU electricity rates and save on your monthly energy bills while supporting the growth of clean, renewable energy.
You’ll Have More Choices
Time-of-use rates are a dynamic pricing plan that splits the day into different electricity rate tiers, typically with “Peak Periods” on weekday evenings or during hot summer afternoons and “Off-Peak Periods” like late nights or weekend mornings. TOU customers can significantly lower their monthly electric bills by shifting energy-intensive activities to off-peak hours. TOU rates are a great way to encourage energy conservation and balance supply and demand on the grid, and they provide you with more choices than traditional flat-rate plans. But to reap the benefits of TOU rates, homeowners must know how they work and be willing to shift their energy usage. The good news is that most utility companies will indicate their TOU plan in the summary area of your bill. This should make comparing your options and choosing the best plan for your needs easier. But even if you know the ins and outs of your TOU rate plan, you may still need clarification about its impact on your household budget. Understanding how your energy consumption impacts your monthly electric bill is essential, and an excellent place to start is by reviewing your current billing structure and habits. Getting to know your TOU rates and making changes to your energy habits can help you save money—and make your home more comfortable at the same time.