Time-of-use (TOU) electric rates encourage customers to use electricity when demand on the power grid is lower. Under a TOU rate structure, electricity rates are higher during on-peak hours from 3:00 PM to 10:00 PM, Monday through Friday, and less during off-peak periods. By reducing electricity use during peak hours and improving overall energy efficiency, households can lower both their energy consumption and monthly electric bills.
Several household appliances account for the majority of residential electricity use. Air conditioners, clothes dryers, dishwashers, ovens, and electric vehicle chargers can consume significant amounts of electricity. Simple efficiency improvements, as well as shifting usage to off-peak hours, could result in meaningful savings.
Estimated Appliance Usage and Potential Savings
| Appliance | Typical Energy Use | Potential Energy Savings | Ways to Save |
|---|---|---|---|
| Air Conditioner | 1 to 5 kWh per hour | 1 to 3 kWh per day | Raise thermostat 2 to 4 degrees, use ceiling fans, seal air leaks, and pre-cool the home before 3 PM |
| Clothes Dryer | 2 to 5 kWh per load | 2 to 10 kWh per week | Run full loads, clean lint filters, air dry when possible, and operate after 10 PM |
| Dishwasher | 1 to 2 kWh per cycle | 1 to 3 kWh per week | Run only full loads and use delay-start settings to operate off-peak |
| Electric Oven/Range | 2 to 5 kWh per use | 1 to 5 kWh per week | Use microwaves, air fryers, or outdoor grills when appropriate and avoid cooking during peak hours |
| Electric Vehicle Charger | 7 to 15 kWh per day | Cost savings from shifting 100% of charging off-peak | Schedule charging overnight after 10 PM |
| Lighting | 0.06 to 0.1 kWh per LED bulb per day | 50 to 200 kWh per year | Replace incandescent bulbs with LEDs and turn off lights when not needed |
| Electronics & Standby Loads | 1 to 5 kWh per day | 50 to 100 kWh per year | Unplug unused devices and use smart power strips |
Shift Usage to Off-Peak Hours
- Running dishwashers after 10 PM by using delay-start settings.
- Doing laundry early in the morning or later in the evening.
- Charging electric vehicles overnight.
- Pre-cooling homes before 3 PM to reduce air conditioner operation during peak hours.
- Preparing meals before peak periods or using smaller cooking appliances that consume less energy.
Reduce Overall kWh Consumption
In addition to shifting usage, reducing total energy consumption can provide year-round savings. Maintaining HVAC equipment, upgrading to LED lighting, using ENERGY STAR® appliances, sealing air leaks, and turning off unused electronics can significantly reduce household energy usage.
By combining energy-efficient practices with shifting appliance use away from 3:00 PM to 10:00 PM Monday through Friday, many households can reduce electricity consumption by 10 to 15% per year while also taking advantage of lower off-peak electric rates. Small changes in energy habits can lead to substantial savings over time.