When Is Electricity the Cheapest?

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Is electricity cheaper during certain times?

Yes, electricity is typically cheaper at night and during mild weather seasons (spring and fall). Electricity rates can also vary daily and even hourly in deregulated states. The rates set by energy providers are affected by factors such as the wholesale cost of electricity, energy demand, and seasonality. When energy demand is low, the price of electricity is normally cheaper. In contrast, when demand skyrockets, so does the cost of energy.

What time of year is electricity the cheapest?

Electricity is cheapest in spring and fall because the weather is moderate in most areas of the country during these seasons. Mild temperatures typically result in low electricity usage because heating and cooling aren’t necessary. Areas with hot summers or cold winters may experience their highest electricity rates from June to August and December to February. For example, Texas summers are very hot and humid, requiring most residents to use air conditioning around the clock. Due to the increased demand, electricity rates soar in the summer.

Is electricity cheaper at night?

Yes, electricity is technically cheaper at night because most people are asleep and not running their large appliances or lighting. Peak hours are when most people have the lights on, do chores, or cook. This coincides with the mornings and evenings before and after traditional work hours. The same rule applies to the weekends — electricity is typically cheaper at night than during the day. Due to these usage patterns, some Texas providers set higher rates during peak hours to make more money on time-of-use plans. However, a traditional fixed-rate plan with a set rate won’t become more expensive during peak times.

How to take advantage of cheap electricity periods

Fortunately, deregulated customers can use the knowledge of peak seasons and times to find cheaper electricity rates. Here are a few ways to maximize your energy savings.

Time-of-use plans

Time-of-use plans offer cheaper electricity rates during off-peak hours and a higher rate during peak hours. One example of a time-of-use plan on our marketplace is the Free Night & Solar Days plan from TXU Energy. This plan is offered at both 12 and 24 months. You’ll receive 100% free energy from 8 p.m. to 4:59 a.m. every night.

Time-of-use plans are advantageous if your lifestyle already matches the free periods. You must use most of your electricity at night to get the most savings out of this plan. This may be challenging for most consumers but could fit someone who is out of the house all day. If your schedule doesn’t match this plan, you’re unlikely to save money since the electricity rate during the day is much higher than other options on our marketplace.

Shop during the low season

Our energy experts recommend shopping for energy during spring and fall to lock in an affordable electricity rate. It may be worth switching to a month-to-month plan for a few months if you are stuck in an unfavorable billing cycle, such as summer. This could help you wait until a cheaper month to shop for a lower electricity rate. Otherwise, if your electricity rate is very high, consider canceling your plan and paying the early termination fee (ETF) if current rates are significantly cheaper. Read your Electricity Facts Label (EFL) to learn how much this would cost. The free SaveOnEnergy marketplace can help you switch energy plans and find the best option for you at any time of the year.