Time-of-Use Electric Rates: How to Beat Them in 2025

TL;DR: Time-of-use (TOU) electric rates charge 2 to 4 times more during peak hours, usually 4 p.m. to 9 p.m. on weekdays, than during off-peak hours overnight or on weekends. Shifting laundry, dishwashing, EV charging, and thermostat pre-cooling outside that window can cut a monthly bill by 20-30% without buying new equipment. The biggest wins come from a programmable thermostat, a delay-start setting on big appliances, and knowing your utility's exact peak schedule.

_Last reviewed: July 2026 · 7 min read_

Your utility switched you to a time-of-use plan and now your bill swings depending on when you run the dryer. That's not a mistake on your end, it's how the rate structure is designed, and there's a straightforward way to work around it.

Okoniq Property Hub logs your utility rate schedule alongside appliance maintenance dates, so you can track which upgrades actually lower your bill over time.

What are time-of-use electric rates, exactly?

Time-of-use rates charge different prices for electricity depending on the hour of the day and sometimes the day of the week. Utilities set this up because the grid gets stressed during specific windows, usually late afternoon into evening when people get home, turn on AC, and start cooking dinner. Peak pricing in California, Texas, and much of the Northeast runs anywhere from 2x to 4x the off-peak rate, meaning a kilowatt-hour that costs 12 cents overnight might cost 35-45 cents at 6 p.m.

The schedule isn't universal. Some utilities run peak hours from 4 p.m. to 9 p.m. weekdays only, others extend it to 3 p.m. to 8 p.m. and include weekends in summer months. Pacific Gas & Electric, for example, uses a 4 p.m. to 9 p.m. peak window year-round for most residential TOU plans, while ComEd in Illinois prices hourly and publishes next-day rates the evening before. Pull up your actual bill or your utility's rate page before assuming a generic 4-9 window applies to you.

Which appliances should you shift out of peak hours?

The appliances worth shifting are the ones that run for an hour or more and don't need to run at a specific time. Dishwashers, clothes washers, and dryers top the list, since most models have a delay-start button that lets you load it at 6 p.m. and have it kick on at 10 p.m. once rates drop. Electric vehicle charging is the single biggest lever for owners who have one: charging a 60-kWh battery at peak rates versus off-peak can mean a $15-20 difference per full charge, which adds up to $60-80 a month for daily commuters.

Water heaters on electric resistance or heat pump models can also be scheduled, either through a smart plug or a built-in timer, to heat water in the early morning hours instead of during dinner prep. Central air conditioning is trickier since you can't just turn it off at 4 p.m., but pre-cooling the house to 68°F at 2 p.m. before rates jump lets the thermostat coast through peak hours without the compressor kicking on as often. If your home still runs older wiring or a 100-amp panel, check whether your setup can even support 100 vs 200 amp service before adding a smart charger or heat pump water heater, since undersized service can trip breakers when multiple shifted loads overlap during off-peak hours.

Is a smart thermostat or timer worth the cost?

Yes, for most homes the payback lands within one to two cooling seasons. A smart thermostat costs $130-$250 installed and typically saves 10-15% on cooling costs by pre-cooling before peak hours and easing back once the sun goes down, according to data utilities publish in their own TOU program guides. Compare that to a simple mechanical timer for $15-30 that only handles on/off appliances like water heaters or pool pumps, with no scheduling intelligence.

| Feature | Smart Thermostat | Mechanical Timer | |---|---|---| | Upfront cost | $130-$250 | $15-$30 | | Handles HVAC pre-cooling | Yes | No | | Learns peak schedule automatically | Some models (via utility integration) | No, manual only | | Best for | Central AC/heat, whole-house savings | Single appliance, like a water heater |

For owner-operators managing a rental, a smart thermostat also gives you a usage log you can hand a tenant or reference at turnover, which beats guessing why last August's electric bill spiked.

How much can you actually save by switching habits?

Most households on TOU plans save between 20% and 30% on their monthly bill by shifting three or four habits: laundry, dishwasher, EV charging, and thermostat pre-cooling. A household with a $180 average summer bill on a flat rate might see that climb to $210 on TOU without behavior changes, since peak-hour AC use gets penalized. Shift the laundry and EV charging alone, and that same household often lands back around $150-165, a savings of roughly $45-60 a month during peak season.

The math works because the rate difference is so steep. If your peak rate is 40 cents/kWh and off-peak is 14 cents/kWh, running a 4-kWh dryer cycle at 7 p.m. instead of 10 p.m. costs $1.60 versus $0.56, a $1.04 difference for one load. Multiply that across a month of laundry, dishes, and charging, and the savings compound fast. If your home has older electrical panels or ungrounded outlets, upgrading them can also reduce fire risk when you're running more devices on delay-start timers overnight; see 2-prong vs 3-prong outlets for what to check before adding smart plugs to older circuits.

Should you worry about your home's wiring before adding smart devices?

Yes, if your home was built before 1970 it's worth a quick check before loading up on smart plugs and delay-start devices. Older homes sometimes still have knob-and-tube wiring that wasn't designed for the kind of continuous, scheduled loads that TOU strategies rely on, like overnight EV charging or a smart thermostat cycling the HVAC system more aggressively during off-peak windows. A licensed electrician can confirm your panel and wiring can handle the shifted load pattern before you commit to a smart charger or new thermostat.

FAQ

What time do peak electric rates start?

Most US utilities set peak hours somewhere between 3 p.m. and 4 p.m., running through 8 p.m. or 9 p.m. on weekdays. The exact window varies by utility and season, so check your bill or your provider's rate schedule page for the specific hours that apply to your account.

Do time-of-use rates apply on weekends?

It depends on the utility. Many providers, including several in California and Arizona, treat weekends and holidays as off-peak all day, while others in colder climates apply a modified peak schedule year-round regardless of the day.

Can I opt out of time-of-use pricing?

Some utilities allow customers to opt back into a flat or tiered rate, especially if you can show the TOU plan increased your bill. Call your utility's customer service line and ask directly, since not all states require them to offer an opt-out.

Does solar make time-of-use rates less painful?

Yes, in most cases. Solar panels generate power during daylight hours, which often overlaps with the shoulder period before peak pricing kicks in, so homeowners with solar and battery storage can avoid drawing from the grid entirely during the most expensive hours.

Is it worth charging an EV overnight instead of after work?

Almost always, yes. Charging overnight typically falls in the cheapest off-peak tier, and the cost difference on a full charge can run $15-20 compared to charging right when you get home during peak hours.

This is educational information, not financial advice. Contact your utility provider directly for your exact rate schedule, and consult a licensed electrician before adding EV chargers or other high-load smart devices to older wiring.