What are peak electricity hours and why am I charged more?

Different Ways Electric Companies Determine Billing

Electric companies have 2 different modules for residential customers. The standard electricity plan requires a flat rate for usage regardless of the time of day it is. Time-of-use (TOU) plans have different cost for usage depending on the time of day you are drawing from the electricity grid.

 

TOU rates are separated into two categories, the first being peak hours. A peak hour is when electricity is in higher demand, while an off-peak hour is when less individuals are using electricity, or the demand is lower.

Each electric provider determines their own hours and days for peak and off-peak hours.

 

Changing Your Habits to Use Non-Peak Electricity

Even if you are not home during non-peak hours several appliances have scheduling functions. Appliances such as dishwashers, washing machines, and dryers can be run on schedule or during non-peak hours. If you have an electric car you can charge your vehicle at night.

Waking up earlier or going to bed later can also help offset your electric cost. Charging laptops, cell phones, and other devices at nighttime can make changes to your account.

 

Consider Installing a Battery

Lots of homeowners are looking into installing battery storage at home. They can charge the battery during non-peak hours and run off the battery during peak hours. Another perk to having a battery is if there is a power outage you can run off the battery as well.

 

Produce Your Own Power

Another way to take control of your electric bill is through the installation of solar panels. Installing solar panels allows homeowners to produce their own power and offset the cost of your electric bill. Depending on your usage you can completely customize your system to cover some or most of your utility bill.