ELECTRICITY RATES
Should You Switch to a Time-of-Use Electricity Plan? Overnight Savings Explained
Learn when overnight electricity pricing saves money, which appliances to shift, and how to compare the discount with peak-hour surcharges.
A time-of-use plan is most likely to save money when you can move a meaningful amount of electricity—especially EV charging—from expensive evening hours into the overnight discount period. It can cost more when large heating, cooking or water-heating loads remain in the peak surcharge window. Test the plan using your own hourly usage before switching.
- ✓ EV charging is often the largest flexible load
- ✓ Peak surcharges can erase overnight savings
- ✓ Model seasonal hourly usage before enrolling
How overnight pricing works
Time-of-use plans change the price per kilowatt-hour by time of day. Hours and prices vary by utility. As a current example, BC Hydro applies an optional 5-cent-per-kWh discount from 11 p.m. to 7 a.m. and a 5-cent surcharge from 4 p.m. to 9 p.m.; other hours have neither adjustment. Verify your own tariff because this example is not universal.
Calculate your break-even point
Net adjustment equals overnight kWh multiplied by the discount, minus peak kWh multiplied by the surcharge. Shifting 200 kWh into a period discounted by $0.05/kWh produces $10 of discount. If 120 kWh remains in a period surcharged by $0.05/kWh, the net benefit is about $4 before taxes and other rate effects.
Best loads to move overnight
Flexible high-energy loads produce the largest benefit. Use manufacturer scheduling features and follow unattended-operation instructions.
- Schedule EV charging inside the complete overnight window
- Delay a dishwasher cycle when the appliance permits unattended use
- Move suitable laundry and dryer cycles away from the peak window
- Charge home batteries and tools in approved locations
- Avoid creating new safety or noise problems merely to save a few cents
Who may pay more
A household with electric cooking, resistance heating, water-heater recovery and laundry concentrated in the evening may face more peak surcharges than overnight discounts. Download several weeks of hourly data and calculate winter and summer scenarios separately.
Official sources and program finders
Rules and funding change. Confirm current eligibility directly before signing a contract or purchasing equipment.
Actual energy use and product performance vary by equipment, conditions and installation. Confirm measurements and manufacturer specifications. Qualified professionals should handle permanent wiring and transfer equipment.