Looking for ways to decrease your spending on utilities? Wondering if the time of day matters when it comes to what you spend on electricity every month? 

As it turns out, there really are times of the day that you’re more likely to save!

Read on to learn about ways you can save money on energy usage, take advantage of the demand in the energy market, and the kind of electricity plan you may want to consider.

Table of Contents

  • Does the Time of Day I Use Electricity Affect My Bill? It Depends on Your Plan
  • When Is the Best Time to Use Electricity? 
  • What Is Peak Demand for Electricity?
  • When are Peak Hours for Electricity Usage? 
  • How Can I Lower My TOU Electricity Bill? 
  • Are There Electricity Plans That May Benefit You More Than a TOU Plan?
  • Are You Looking for a New Electricity Provider? Gexa Energy Offers Plans to Suit Every Households’ Needs

Does the Time of Day I Use Electricity Affect My Bill? It Depends on Your Plan

Depending on your current electricity provider, you likely have one of two types of plans:

  1. A fixed-rate plan 
  2. A ‘time of use’ (TOU) plan

If you have a TOU plan, the time of day affects what you pay for your electricity usage. 

On the other hand, with a flat-rate electricity plan, the time of day you use electricity does not affect what you pay.

Time of Use Plans

TOU (time of use) plan is an arrangement between you and your electricity provider where you pay a higher rate during certain hours of the day when energy is in higher demand and a lower rate when the demand is lower. 

You can also think about it this way: ‘TOU rates’ will be higher during ‘peak hours’ and lower during ‘off-peak hours’.

In theory, someone with a ‘time of use’ plan could save money if they were strategic about the time of day they consumed the most electricity. 

If this has you interested, consider one of Gexa Energy’s free energy plans that let you use energy for free for up to three days in a row or a long weekend! 

Gexa Energy’s free energy plans are 100% renewable and include:

  • Periods of the day or week when you are not charged for electricity use
  • 100% green energy
  • Our Happiness Guarantee*    

Why Do Providers Offer Time of Use Plans?

Electricity providers offer ‘time of use’ plans so that the cost they incur supplying energy during ‘peak hours’ is covered.  

The cost to source electricity varies at different times of the day. In fact, the cost of supplying electricity changes from minute to minute. 

If everyone had flat-rate plans, electric companies wouldn’t profit during hours of the day when electricity is in high demand.  

The TOU plans electricity providers offer are generally meant to:

  • Incentivize consumers to use electricity during off-peak hours  
  • Curb the demand for energy in a given area; and
  • Decrease the cost of supplying electricity.  

Is a Time of Use Plan Right for Me? 

A TOU plan isn’t for everyone. 

Every household is different and every household comes with its own set of electricity needs. 

If you tend to consume higher amounts of electricity when your area’s energy supply is in high demand, then a flat-rate plan may benefit you most. 

On the other hand, if you have the flexibility to push off some of the bigger chores until the evening or right before bed, you could experience some real savings with a TOU plan. 

‘Time of Use’ plans are most likely to benefit:

  • Those who are home during ‘off-peak’ hours
  • Individuals with enough flexibility in their schedule to plan around changing electricity rates

Contact your energy provider or reach out to Gexa Energy and choose a plan that is right for you, your family, and your budget!

If you have a TOU electricity plan or are planning to establish one, you’ll want to read on to learn about the best hours to use electricity in order to save the most money.

When Is the Best Time to Use Electricity?

As a general rule, the best time to use electricity is early in the morning or late in the evening. The times of day when electricity rates are lowest are called ‘off peak’ hours.

If you want to save more money, perform the majority of energy-consuming activities during off-peak hours. 

These activities might include:

  • Running the dishwasher
  • Doing laundry
  • Taking a shower or bath

An important thing to note: Electricity rates vary from state to state and even within a state. Look into the electricity rates in your area here

What Is Peak Demand for Electricity? 

Peak demand for electricity is simply referring to the times of day when demand for electricity is the highest. During this time, electrical grids are expected to expend a sustained amount of power.

Demand for electricity changes with the seasons, too. For example, summer months are more likely to experience peak rates. Different providers may offer different rates from summer to winter. 

This is especially true in Texas where summers can really bring the heat.

When are Peak Hours for Electricity Usage? 

Peak demand typically falls between the hours of 3 p.m. to 7p.m. when most people are home from work and consuming the most energy. 

Activities that would consume energy during those hours may include:

  • Cooking dinner
  • Washing the dishes or running the dishwasher
  • Charging a car 
  • Watching TV

On the other hand, ‘off-peak’ hours will typically be early in the morning and late at night. That said, waking up extra early to do some of those activities might really pay off. 

There are also hours of the day when rates aren’t super high or super low. 

In the middle of the day, for example, between the hours of 10 a.m. and 2 p.m., rates will generally be somewhere in the middle. As more people stick to working from home, this reality may be subject to change. 

On-Peak Electricity Costs

Since the price of electricity is changing constantly and takes into account so many variables, we aren’t able to provide exact costs. Rates are usually determined by:

  • Location
  • Time of year
  • Amount of energy consumed
  • Market changes

Electricity is priced in terms of cents per kilowatt-hour (kWh). This is how it shows up on your bill whether you’re consuming electricity in a regulated or deregulated market.

Using electricity during on-peak hours will result in a higher cost because the amount of energy you use in that time period is multiplied by the on-peak rate.

Off-Peak Electricity Costs

Similarly, using electricity during off-peak hours will result in a lower overall cost because the amount of kilowatts used is multiplied by the off-peak rate. 

The key takeaway: If you want to spend less on electricity, consider shifting some of your larger chores to off-peak hours and enjoy the lower rates. 

How Can I Lower My TOU Electricity Bill? 

Whether or not you currently have a TOU plan, it is in everyone’s best interest to save on energy. Fortunately, there are several things we can do to conserve energy and reduce our spending. 

And Gexa Energy has already done a lot of the research for you!

If you have a TOU and you aren’t prioritizing energy-consuming activities during off-peak hours, that is a great place to start. If you are already taking advantage of off-peak hours, you can still save through these energy-saving tips

Unplug Electronic Devices When Not in Use

Leaving your electric devices plugged in all the time can be a really big waste of energy and a drain on your wallet. 

Not only do you end up spending money to charge a device that you aren’t using, but leaving devices plugged in longer than they need to be could  cause the device to overheat. Overheating your device may weaken the battery life of the device over time.

Unplugging devices during the day when you aren’t home or when they are not in use is a great way to save electricity.

Pro tip: Try charging your devices during off-peak hours to maximize your current plan.

 Keep Your Thermostats Set

Residential areas tend to use the most electricity for heating and cooling. 

Be sure to keep an eye on your thermostat. Most thermostats have settings that enable a homeowner to run heating or cooling during certain times of the day. 

Depending on your household needs and your electricity TOU plan, you can consider having your air conditioning run during off-peak hours of the day where rates are lower.

Make Changes Around the House

Elements of your home could be affecting how hard your AC unit is working. Investing in an energy-saving design could produce significant savings.

Really significant changes to your home could warrant a hefty investment.

Luckily, there are some really simple changes you could make around your house to help reduce energy consumption. 

Some of them include:

  • Shade the windows to let in less light during the day
  • Consider a lighter color roof
  • Install weather stripping
  • Make sure your ceiling is properly insulated

Are There Electricity Plans That May Benefit You More Than a TOU Plan?

With so many electricity providers out there, choosing the right plan for you can feel overwhelming. Depending on your unique electricity needs, several different plans could benefit you.

Flat-rate plans could be a great option for you if you don’t have the flexibility to use the bulk of your electricity during off-peak hours. We’ll cover this type of plan in more depth below.

 Fixed-Rate Electricity Plans

 Fixed rate plans typically offer contract terms of 3 to 24 months (or more) during which the rate for each billing period stays the same.For example, even if you crank up the air conditioning in the summertime, your rate won’t change from what was agreed upon when your plan was established.

If this sounds good to you, you may want to consider one of Gexa Energy’s fixed-rate plans that lock in a low rate for up to 24 months. 

Our fixed-rate electricity options include:

  • Varying term-length options
  • Great rates
  • Promotional offers
  • 100% renewable plans
  • Our Happiness Guarantee*

Gexa Energy has plans designed to meet every household’s electricity needs. Compare plans in your area. 

Are You Looking for a New Electricity Provider? Gexa Energy Offers Plans to Suit Every Households’ Needs

Gexa Energy provides electricity to over 100,000 Texas residents. Why do they choose us? 

In addition to our great plans and affordable pricing, our customers benefit from outstanding customer service. 

Are you looking to switch electricity providers? We’ve made it really easy —  all you have to do is follow these simple steps:

  1. Browse Gexa Energy’s available 100% renewable plans. 
  2. Choose the plan that fits your current needs.
  3. Fill out our quick and easy online enrollment form.
  4. Sit back and enjoy Gexa’s fantastic customer care.

Once online enrollment is complete, we’ll even work with your current energy provider to help ensure a smooth transition. 

Gexa has a wide variety of 100% renewable plans that are designed to meet your household’s electricity needs. 


Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan.  The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.  


* Happiness Guarantee - If you’re not happy with your new Gexa Energy residential plan, just call us within 60 days of your service activation date, change to another available Gexa Energy plan, and we’ll waive the early cancellation fee on your first plan; applies one time only for new Gexa Energy residential customers. Your contract term will restart with your second plan. Offer subject to change or withdrawal prior to customer acceptance.