Shifting your laundry, dishwasher, and other heavy appliances to off-peak hours on a time-of-use electricity plan can realistically save between $150 and $300 per year, depending on your utility and how much energy you consume during expensive peak windows. The math is straightforward: if your utility charges 35 cents per kilowatt-hour between 4 p.m. and 9 p.m. but only 12 cents per kWh after 9 p.m., running a single load of laundry (washer plus dryer) costs roughly 90 cents during peak versus 31 cents off-peak. Do that five times a week, and the savings add up to about $153 annually on laundry alone. Add in your dishwasher, electric vehicle charger, or pool pump, and you cross the $200 mark without much effort. Time-of-use plans are not new, but they are becoming harder to avoid.
Utilities in California, Arizona, Illinois, and several other states have already moved millions of customers onto TOU rate structures either by default or as the only available option. Whether you chose this plan or got enrolled automatically, the savings hinge entirely on understanding when electricity costs the most and rearranging your habits around those windows. This article breaks down how TOU pricing actually works, which appliances matter most, where the plan can backfire, and how to decide whether switching makes sense for your household. The savings are real, but they are not automatic. A family that runs the dryer at 6 p.m. every night, cranks the air conditioning all afternoon, and charges an EV when they get home from work could actually pay more on a TOU plan than on a flat rate. The rest of this piece will walk through the specific numbers, the appliances worth targeting, and the honest tradeoffs so you can figure out whether this approach fits your life or just adds stress for marginal returns.
Table of Contents
- How Do Time-of-Use Electricity Plans Work and How Much Can You Actually Save?
- Which Appliances Should You Shift to Off-Peak Hours?
- Understanding Your Utility’s Peak and Off-Peak Schedule
- Setting Up Automation So You Do Not Have to Think About It
- When Time-of-Use Plans Can Backfire
- Combining TOU Plans with Solar Panels and Battery Storage
- The Future of Electricity Pricing and What It Means for Your Bill
- Conclusion
- Frequently Asked Questions
How Do Time-of-Use Electricity Plans Work and How Much Can You Actually Save?
Time-of-use pricing divides each day into two or three rate tiers. Peak hours, typically running from mid-afternoon through early evening, carry the highest per-kWh price because that is when demand on the grid spikes. Off-peak hours, usually late night through early morning, cost significantly less. Some utilities add a “mid-peak” or “partial-peak” tier that falls between the two extremes. For example, Southern California Edison’s TOU-D-4-9PM plan charges around 43 cents per kWh during summer peak hours (4 p.m. to 9 p.m.) and roughly 27 cents off-peak. Pacific Gas and Electric, Commonwealth Edison in Illinois, and Arizona Public Service all run similar structures with their own rate windows and price spreads. The size of your savings depends on the price spread between peak and off-peak and how much load you can realistically shift.
A household using 900 kWh per month that moves 30 percent of its consumption from peak to off-peak on a plan with a 20-cent spread would save about $54 per month, or $648 per year. Most households cannot shift that much, however. A more realistic scenario involves moving laundry, dishwashing, EV charging, and perhaps a pool pump, which might represent 15 to 20 percent of total consumption. That still lands in the $150 to $250 annual range for many families. The Department of energy has noted that customers who actively manage their usage on TOU plans save 10 to 15 percent on their bills compared to what they would pay on a flat rate. One important distinction: TOU plans do not reduce your total electricity consumption. They reduce your cost by shifting when you use the same amount of power. If your utility’s off-peak rate is higher than the flat rate you currently pay, you will not save money unless you shift a meaningful portion of your usage. Always compare the actual rates side by side before enrolling, because some TOU plans set their off-peak price only slightly below the flat-rate alternative while hiking peak prices substantially.
Which Appliances Should You Shift to Off-Peak Hours?
The appliances worth rescheduling are the ones that draw the most wattage and run for extended periods. Clothes dryers top the list at roughly 2,500 to 5,000 watts per cycle, making them one of the most expensive single appliances to run during peak hours. Electric vehicle chargers pull between 1,400 watts (Level 1) and 7,700 watts or more (Level 2), and since a full charge can run for several hours, the timing difference is enormous. A Level 2 EV charger running for four hours at peak rates versus off-peak rates can represent a daily cost difference of $2 to $4 in high-rate territories. Pool pumps, electric water heaters, and dishwashers round out the high-impact targets. However, not every appliance is worth the hassle. Your refrigerator runs 24 hours a day and cannot be shifted. Lights, routers, and small electronics draw so little power that moving their usage would save pennies per month.
The 80/20 rule applies aggressively here: focus on the four or five biggest loads, and ignore everything else. A common mistake is obsessing over unplugging phone chargers or turning off power strips, which saves almost nothing, while continuing to run the dryer at 5:30 p.m. every day, which is where the real money goes. If you work from home and run air conditioning during the afternoon, TOU pricing can actually work against you. Cooling a house between 2 p.m. and 7 p.m. in a hot climate can easily consume 3 to 5 kWh per hour, and at peak rates, that adds up quickly. Pre-cooling your home before peak hours starts, setting the thermostat a few degrees higher during peak, or using fans to supplement can help, but if you genuinely need heavy cooling during those hours, the TOU plan may cost you more than a flat rate. Run the numbers for your specific situation before assuming savings will materialize.
Understanding Your Utility’s Peak and Off-Peak Schedule
Peak windows vary significantly by utility, and getting the schedule wrong by even an hour can erase your savings. Most utilities in the western United States set peak hours from 4 p.m. to 9 p.m. during summer months, while some in the Midwest and East Coast use 2 p.m. to 7 p.m. or 1 p.m. to 6 p.m. Seasonal shifts are common too. Pacific Gas and Electric, for instance, adjusts its TOU windows and rates between summer (June through September) and winter (October through May), with summer peak prices running considerably higher. Weekends and holidays often get off-peak pricing all day, which is a detail many customers overlook. If your utility treats Saturday and Sunday as entirely off-peak, that is the time to batch your laundry, run the dishwasher multiple times, and handle any other energy-intensive chores.
Some plans also distinguish between weekday mid-peak and full peak, giving you a cheaper window in the late morning that is still more expensive than nighttime but far better than the afternoon spike. Arizona Public Service’s Saver Choice Max plan, as one example, charges its highest rate from 4 p.m. to 7 p.m. on weekdays but offers a cheaper “shoulder” rate from 7 a.m. to 4 p.m. and 7 p.m. to 10 p.m. before dropping to the lowest off-peak rate overnight. The most reliable way to find your exact schedule is to look at your utility’s rate card, which is usually a PDF or webpage listing the specific plan name, the time windows, and the per-kWh prices for each tier. Do not rely on third-party summaries, which are often outdated. Your utility’s app or online portal typically shows your current plan name, and from there you can find the detailed rate schedule. Write the peak hours on a sticky note and put it on your washer or dryer until the schedule becomes second nature.
Setting Up Automation So You Do Not Have to Think About It
The biggest risk to TOU savings is human forgetfulness. You intend to wait until 9 p.m. to start the dryer, but after a long day, you throw the clothes in at 7 p.m. because you just want it done. Automation removes willpower from the equation. Most modern dishwashers and some washing machines have delay-start timers built in, letting you load the machine whenever you want and schedule it to run during off-peak hours. If your washer lacks this feature, a simple outlet timer or smart plug rated for the appliance’s amperage can do the same thing, though you should never use a standard smart plug on a dryer circuit since those require 240-volt connections. Electric vehicle owners have it easiest.
Nearly every EV and most Level 2 chargers allow you to set a charging schedule directly in the car’s software or the charger’s app. Set it once to start charging at your off-peak window, and it handles itself permanently. Smart thermostats like the Ecobee or Google Nest can be programmed to pre-cool the house before peak hours begin and raise the temperature a couple of degrees during the expensive window, shaving peak consumption without leaving you uncomfortable. The tradeoff is upfront cost: a smart thermostat runs $100 to $250, a heavy-duty appliance timer is $20 to $40, and a Level 2 EV charger with scheduling runs $400 to $700 installed. For most households, the thermostat alone pays for itself within a year if it reduces peak cooling costs by even 15 percent. The comparison between manual effort and automation is stark. Households that rely on memory and discipline tend to shift about 10 to 15 percent of their peak usage, while those that automate the big loads regularly shift 25 to 40 percent. If you are going to commit to a TOU plan, invest the small amount of time and money needed to automate the three or four appliances that matter most. Otherwise, the theoretical savings stay theoretical.
When Time-of-Use Plans Can Backfire
TOU plans are not universally beneficial, and there are specific household profiles that tend to lose money on them. Families with someone home all day in a hot climate face the hardest math. If you are running air conditioning from noon to 8 p.m. and cannot pre-cool effectively because the house heats up too quickly, the peak pricing penalty can exceed whatever you save by shifting laundry and dishes. Similarly, households with medical equipment that must run continuously, like oxygen concentrators or CPAP machines, cannot shift that load and may find the peak surcharge outweighs the off-peak discount. Another risk comes from rate plan changes that utilities make periodically. Your current TOU plan might offer a generous off-peak discount, but utilities can and do adjust rates, sometimes narrowing the spread between peak and off-peak to the point where the hassle of shifting usage is no longer worth the shrinking savings.
California utilities have restructured their TOU tiers multiple times over the past five years, and customers who set up their routines around one rate structure have occasionally found their savings cut in half after a rate adjustment. Always review your rate plan annually and compare it against the flat-rate alternative your utility offers. There is also a behavioral cost that rarely gets mentioned in savings projections. Running the dishwasher at 10 p.m. means it finishes at midnight, and if you need to unload it before bed, that is a mild annoyance. Running the washing machine on a delay timer overnight means wet clothes sitting in the drum for hours, which can develop mildew if you forget to move them to the dryer first thing in the morning. These are small frictions, but they add up over months, and for some households, the $15 to $20 in monthly savings is not worth the daily mental overhead of managing appliance schedules.
Combining TOU Plans with Solar Panels and Battery Storage
Households with rooftop solar panels are in a particularly interesting position with TOU pricing. Solar panels generate the most electricity during midday hours, which under older rate structures was when utilities paid the highest credits through net metering. But as utilities shift peak pricing to late afternoon and evening, the mismatch between when solar panels produce and when electricity costs the most has grown. In California, the duck curve phenomenon means solar production peaks around 1 p.m. while peak TOU rates do not kick in until 4 p.m., leaving a gap where your panels are winding down just as prices are ramping up.
A home battery system like the Tesla Powerwall or Enphase IQ changes this equation. The battery stores midday solar production and discharges it during peak TOU hours, effectively letting you use your cheapest electricity when prices are highest. Paired with a TOU plan, a well-sized battery can eliminate peak consumption almost entirely. The catch is cost: a residential battery system runs $10,000 to $15,000 installed even after federal tax credits, and at $200 per year in TOU savings alone, the payback period from rate arbitrage is measured in decades. The battery makes financial sense only when you factor in backup power value, additional solar self-consumption savings, and in some states, utility demand-response incentive programs.
The Future of Electricity Pricing and What It Means for Your Bill
The trend in electricity pricing is moving firmly toward more granular time-based rates, and in some cases, real-time pricing that changes hour by hour based on grid conditions. ComEd in Illinois already offers an hourly pricing plan where your rate fluctuates with the wholesale market, meaning prices can drop below 3 cents per kWh in the middle of the night and spike above 10 cents on hot afternoons. As smart meters become universal and utilities deploy more sophisticated grid management software, expect TOU-style pricing to become the default rather than the exception within the next decade. For consumers, this shift rewards flexibility.
Households that invest in smart home technology, battery storage, or simply build habits around off-peak usage will pay measurably less than those who consume electricity without regard to timing. The $200 per year you can save today by running the washer at 9 p.m. instead of 5 p.m. is likely to grow as peak-to-off-peak price spreads widen under increasing grid strain from electrification of vehicles and heating systems. Building these habits now, while the savings are modest but real, positions you well for a future where timing your electricity use is not optional frugality but basic financial hygiene.
Conclusion
Time-of-use electricity plans offer a genuine path to saving $150 to $300 per year, but the savings require active participation. The core strategy is simple: identify your utility’s peak hours, shift your dryer, dishwasher, EV charger, and water heater to off-peak windows, and automate as much of that shifting as possible. The households that benefit most are those with flexible schedules, electric vehicles, or the willingness to invest in smart home devices that remove the burden of remembering when to run each appliance. Before switching to a TOU plan, pull up your utility’s rate comparison tool and look at what your bill would have been under the TOU structure for the past 12 months.
Most major utilities offer this analysis online. If the numbers show savings, start with the two or three biggest appliances, set up delay timers or smart schedules, and give it a three-month trial. Check your bills against the projection, adjust your habits if needed, and decide from there whether the savings justify the effort. The money is real, but only for households willing to pay attention to the clock.
Frequently Asked Questions
Can I switch back to a flat-rate plan if TOU pricing does not work for me?
Most utilities allow you to switch plans once per 12-month period, though some allow changes more frequently. Check your utility’s plan-switching policy before enrolling, and keep your first few months of TOU bills so you can compare them against your previous flat-rate costs.
Do TOU rates apply to natural gas, or just electricity?
Time-of-use pricing applies only to electricity. Natural gas is typically billed at a flat per-therm rate or a tiered rate based on total monthly consumption, not on time of day. If your dryer, water heater, or furnace runs on gas, shifting their usage times will not affect your gas bill.
What happens if I run an appliance right at the boundary between peak and off-peak?
Your smart meter records usage in 15-minute intervals. If peak pricing ends at 9 p.m. and you start your dishwasher at 8:50 p.m., the first 10 minutes of the cycle will be billed at the peak rate and the remainder at the off-peak rate. Starting appliances 15 to 30 minutes after the rate change is a safe buffer.
Are TOU plans worth it if I do not have an electric vehicle?
Yes, but the savings will be smaller. EV charging is often the single largest shiftable load, representing $50 to $100 of the potential annual savings. Without an EV, your savings will come primarily from laundry, dishwashing, and water heating, which typically add up to $100 to $150 per year depending on your household size and utility rates.
Do TOU plans charge more during heat waves or extreme weather?
Standard TOU plans charge the same peak rate regardless of weather, but some utilities have critical peak pricing events where rates spike much higher, sometimes to $1 per kWh or more, on days when the grid is under extreme stress. These events are usually announced a day in advance and happen only a handful of times per year. Check whether your plan includes critical peak pricing and whether you can opt out of that component.
