How they work
A time-of-use plan splits the day into price periods. A typical plan has an expensive peak in the late afternoon and early evening on weekdays, when demand is highest, and cheaper off-peak hours overnight and on weekends. Some add a middle “shoulder” period, and some change by season.
Each utility sets its own hours and prices, and in some states TOU is now the default plan for residential customers. Your bill or your utility’s rate page lists the periods.
Who saves
You save if a large share of your use can move out of the peak window. You lose if you’re home all afternoon running the AC with no way to shift it.
| Load | Easy to shift? | How |
|---|---|---|
| EV charging | Yes | Schedule it in the car’s app or the charger’s app. EV charging |
| Electric water heater | Yes | A heat pump water heater’s schedule, or a timer on a resistance tank installed by an electrician. Water heating |
| Dishwasher, laundry | Mostly | Delay-start buttons |
| Heating and cooling | Partly | Pre-cool or pre-heat before the peak with a smart thermostat. Thermostats |
| Fridge, lights, router | No | These run when they run |
Check before you switch
Ask your utility for a comparison based on your last 12 months of hourly data; many offer one online. If you have a smart meter, you can usually download that data yourself (often labeled Green Button) and see how much of your use falls in the peak.