When is electricity cheapest?

Electricity is cheapest late at night and in the early morning, typically between 9 pm and 6 am for most utilities in the U.S. These are called “off-peak” hours, when demand on the grid is low and utilities charge their lowest rates. For homeowners on a time-of-use (TOU) plan—a pricing structure where rates change based on the time of day—electricity is almost always cheaper at night. The reason is simple: fewer people are home and using power, so demand and the cost of generating electricity drops.

That said, the exact hours and savings you can capture depend on your utility and your location. In California, for example, PG&E, SCE, and SDG&E all have peak windows from 4 to 9 pm on weekdays, meaning anything before or after those hours—including the entire night—qualifies as off-peak. In New England, peak windows often extend later into the evening. Check with your utility provider to confirm your specific schedule.

Your electric bill is based on a charge per kilowatt-hour (kWh), so you’re billed for the actual electricity pulled from the grid. Under TOU rate plans, your utility charges more for electricity during “peak” hours when demand is highest, and less during “off-peak” hours when demand drops. 

As we mentioned, peak hours typically fall in the late afternoon and evening on weekdays, somewhere between 4 pm and 9 pm when people return home from work, turn on lights and appliances, run the AC, and cook dinner. Off-peak hours are everything else: overnight, early morning, and most of the weekend. 

Some utilities add a third tier called “partial-peak” or “mid-peak” hours—a middle rate that applies during shoulder periods between peak and off-peak. For example, San Diego utility SDG&E expanded its super off-peak window to weekdays from 10 am to 2 pm year-round, meaning midday is now among the cheapest times for its customers to use electricity. 

Rates during peak hours can be two or three times higher than off-peak rates. Even slight shifts in when you run your energy-hungry appliances can add up to real savings over the course of a year.

On-peak hours for the top 10 states by solar power usage

Rates are subject to change. Check with your utility for current schedules. Rows marked without a link could not be verified against a primary source—confirm directly with your utility.

California customers: For a deeper look at your specific utility's peak windows and rate options, see our guides to PG&E TOU rates, SCE TOU rates, and SDG&E TOU rates.

Summer is when TOU rates matter most. Air conditioning is by far the biggest driver of electricity demand on hot days, and utilities know it. Peak windows in summer are longer, rates during those windows are higher, and the cost difference between peak and off-peak hours is often greatest from June through September.

For a household running central AC, a dishwasher, and charging an EV, the timing of those loads can make a significant difference on your monthly bill. Here's what to shift out of peak hours:

• Laundry: Run your washer and dryer after 9 pm or before the peak window starts. Many modern machines have delay-start features built in—set them before bed and let them run overnight.

• Dishwasher: Run it after dinner but delay the start until after peak hours end. Most dishwashers have built-in delay functions. The dishes will be just as clean, and you'll pay off-peak rates.

• EV charging: This is one of the biggest opportunities for TOU savings. An EV charged nightly at off-peak rates can cost a fraction of what it would during peak hours. Set your car to charge after 9 pm — most EVs and home chargers let you schedule charging times directly from an app.

• Pre-cooling your home: Before peak hours hit in the late afternoon, lower your thermostat a degree or two during off-peak morning hours to pre-cool your home. Then raise the thermostat during peak hours and let the thermal mass of your home keep it comfortable. A smart thermostat can automate this entire process. You'll reduce how hard your AC runs during the most expensive hours without sacrificing comfort.

That depends. TOU plans can save you money, but they can also be costly if your lifestyle makes it hard to shift usage away from peak hours. Before switching to TOU, it's worth knowing what you're switching from. Most customers who aren't on TOU are on a tiered rate plan, where the rate you pay increases as you use more electricity—regardless of when you use it. TOU replaces that structure with one that rewards shifting usage to off-peak hours.

The best way to determine the right plan is to review your options on your utility's website, compare current rates against your usage patterns, and consider any solar, battery, or EV equipment you have or plan to add. Just note that some utilities require you to stay on a TOU plan for at least 12 months before switching back, so it’s worth doing your homework before opting in. 

Even with the best intentions, it’s not realistic to avoid using electricity altogether during peak hours. Luckily, there are tools available that can help.

Install a home battery

A home battery lets you store cheap off-peak electricity and use it during expensive peak hours—buying low and using high. It’s one of the most effective ways to manage TOU costs, with the added benefit of providing backup power during outages. Many state and utility companies offer incentives and rebates to help reduce the upfront cost.

Go solar

Solar panels can generate significant electricity during the day, reducing how much you need to pull from the grid during peak hours. If your panels generate more than you need, the excess may earn you credits through net metering. If your roof faces west, your panels will produce the most power in the late afternoon, when peak rates are highest. Talk to your installer about system design to maximize TOU savings. 

Whether you're thinking about a home battery, solar panels, or just want a better handle on your electricity bill, EnergySage can help. If you're ready to go further and generate your own power, compare solar quotes from vetted local installers or explore home battery options to start taking control of what you pay.