How Time-of-Use Electricity Rates Change the Best Time to Run Appliances

Most people think the cost of electricity is determined simply by how much electricity they use. But if your utility offers a time-of-use (TOU) electricity plan, when you use electricity can also affect what you pay.

Under a time-of-use plan, electricity can cost more during periods when demand is high and less during periods when demand is lower. That means the best time to run a dishwasher, washing machine, dryer, water heater, pool pump, or EV charger may not be the time that is most convenient.

Instead, the cheapest time can depend on your utility’s specific pricing schedule.

Time-of-use pricing is designed to encourage customers to move flexible electricity consumption away from expensive peak periods. The U.S. Department of Energy describes TOU pricing as a form of time-variable pricing in which electricity prices change at predetermined times, often with peak, shoulder, and off-peak periods.

The important part is that there is no single best appliance schedule for every household.

Your ideal schedule depends on your utility, tariff, season, appliance, electricity rate, and how flexible your household routine is.

This guide explains how TOU rates work, which appliances are easiest to shift, how much timing can matter, and how to create an appliance schedule that fits your electricity plan.

What Are Time-of-Use Electricity Rates?

Time-of-use electricity rates are pricing plans in which the price of electricity changes depending on the time of day and sometimes the season.

Instead of paying the same energy rate throughout the day, a TOU customer may have several pricing periods.

A simplified example could look like this:

Time period	Example rate	Typical use
Off-peak	$0.12/kWh	Overnight or low-demand hours
Shoulder	$0.20/kWh	Morning or evening transition
Peak	$0.35/kWh	High-demand afternoon/evening

These prices are only an illustration. Actual rates and time periods vary substantially between utilities and locations.

The U.S. Department of Energy notes that TOU programs generally use predetermined time periods, while other time-variable programs can have prices that change more dynamically.

This creates an important opportunity for households:

If an appliance can operate at a different time without affecting your daily routine, you may be able to move its electricity consumption into a cheaper pricing period.

Why Does Electricity Cost More at Certain Times?

Electricity demand isn’t constant throughout the day.

Households may collectively use more electricity during periods when people return home, turn on heating or cooling, cook meals, use appliances, charge vehicles, and operate electronics.

The U.S. Department of Energy notes that household electricity use often increases in the late afternoon and evening, although the exact pattern varies by location and season.

Utilities therefore have an incentive to reduce electricity demand during high-demand periods.

TOU rates provide a financial signal:

• Use electricity during expensive periods → pay the higher applicable rate.
• Shift flexible usage to cheaper periods → pay the lower applicable rate.
• Reduce unnecessary consumption → potentially reduce total electricity costs regardless of timing.

The goal isn’t necessarily to make people use less electricity. In many cases, TOU pricing is intended to shift electricity consumption from one time to another.

That distinction matters.

Does Running Appliances at Night Always Save Money?

No.

This is one of the most important things to understand about TOU electricity rates.

Running an appliance at night only produces a timing-related saving if:

1. You are actually on a time-based electricity plan.
2. Your nighttime period is cheaper.
3. The appliance is consuming electricity during the cheaper period.
4. The difference between rates is large enough to matter.
5. Other charges on your bill don’t offset the savings.

The U.S. Energy Information Administration explains that utilities may encourage customers to move high-electricity-use activities to lower-demand periods through time-of-use or time-of-day rates.

If your household is on a flat-rate electricity plan, moving your dishwasher from 7 p.m. to 11 p.m. generally won’t change the energy price simply because the clock changed.

You should therefore check your electricity tariff before changing your appliance schedule.

How Time-of-Use Rates Change the Best Time to Run Appliances

The traditional advice might be:

“Run appliances at night.”

A better rule is:

Run flexible appliances during your utility’s lowest-cost rate period.

That period could be overnight.

But it could also be:

• Late morning
• Early afternoon
• Weekends
• Holidays
• Early morning
• A specific super-off-peak window

Some TOU plans have multiple pricing periods rather than simply “day” and “night.”

The Department of Energy describes TOU programs as commonly having peak periods, overnight off-peak periods, and sometimes shoulder periods between them.

So instead of memorizing a generic schedule, look at your actual tariff.

The Three Main Electricity Pricing Periods

1. Peak Hours

Peak hours are periods when electricity costs more under your particular TOU plan.

They often correspond to periods of high demand.

Depending on the utility, peak hours could occur in:

• The afternoon
• Early evening
• Evening
• Winter mornings
• Summer afternoons
• Other utility-defined periods

Peak periods can also change by season.

The important thing is not the label itself but the price attached to it.

2. Shoulder or Mid-Peak Hours

Some utilities use an intermediate pricing period.

Shoulder hours cost more than off-peak electricity but less than peak electricity.

For example:

• Off-peak: $0.12/kWh
• Shoulder: $0.20/kWh
• Peak: $0.35/kWh

If your dishwasher can operate overnight, moving it from shoulder hours to off-peak hours may make sense.

3. Off-Peak Hours

Off-peak hours are periods when electricity is priced lower under your specific plan.

They frequently occur overnight, but that isn’t universal.

Some tariffs may also have lower-cost daytime periods, weekends, or special seasonal pricing.

That’s why “electricity is always cheapest at night” is too broad.

Which Appliances Should You Run During Off-Peak Hours?

The best candidates are generally appliances that:

• Use significant electricity.
• Don’t need to run at a specific time.
• Can operate safely without constant supervision.
• Have delayed-start or timer features.
• Can complete their cycles without interfering with your routine.

Here is a practical guide.

Appliance	Easy to Shift?	Typical Strategy
Washing machine	Yes	Run during off-peak hours
Dishwasher	Yes	Use delayed start
Clothes dryer	Yes	Shift drying away from peak
Electric water heater	Often	Heat during lower-cost periods
EV charger	Usually	Schedule charging during cheap periods
Pool pump	Usually	Move some cycles to off-peak
Electric oven	Sometimes	Avoid peak when practical
HVAC	Limited	Use smart controls and pre-conditioning where appropriate
Refrigerator	No	Keep operating continuously
Freezer	No	Keep operating continuously
Lighting	Limited	Use only when needed
Television	Flexible	Avoid unnecessary peak use if practical

The exact strategy depends on your equipment and tariff.

Washing Machine: When Should You Run It?

Washing machines are one of the easiest appliances to move to a different time.

If your TOU plan has cheaper overnight or daytime hours, consider scheduling laundry during those periods.

For example:

Peak: 4 p.m.–9 p.m.
Off-peak: 9 p.m.–4 p.m.

You could run a load at 10 p.m. instead of 6 p.m.

The washing machine doesn’t care whether the cycle starts at 6 p.m. or 10 p.m., provided the timing works for your household.

However, don’t assume that every washing machine cycle consumes the same amount of electricity.

Heating water is often a major source of energy use in laundry. Choosing cooler wash settings can reduce total energy consumption in addition to shifting the load to a cheaper time.

That means there are two separate strategies:

Efficiency: Use less electricity.

Load shifting: Use electricity at a cheaper time.

Combining both can be more effective than relying on timing alone.

Dishwasher: A Good Candidate for Load Shifting

Dishwashers are another strong candidate for TOU scheduling.

If your utility’s expensive period occurs in the evening, you could load the dishwasher after dinner and use its delayed-start feature to begin the cycle later.

For example:

7 p.m.: Load dishwasher
8 p.m.: Select delayed start
11 p.m.: Dishwasher begins
1 a.m.: Cycle finishes

The exact schedule depends on your machine and tariff.

ENERGY STAR-related guidance has also highlighted smart appliances that can shift certain operations, such as refrigerator defrost cycles, to different periods when electricity pricing makes timing valuable.

Clothes Dryer: Timing Can Matter

Clothes dryers can consume substantial amounts of electricity, especially electric models.

If your electricity rate is significantly higher during peak hours, consider running the dryer during an off-peak period.

This is particularly useful because drying is usually flexible.

You can wash clothes during one period and delay drying until the cheaper period.

For households with frequent laundry loads, the cumulative effect can be more noticeable than shifting an appliance that runs only occasionally.

However, always follow the manufacturer’s safety instructions. Don’t use a dryer in a way that creates a fire, ventilation, moisture, or overheating risk simply to reach a cheaper electricity period.

Electric Water Heater: One of the Biggest Opportunities

Electric water heating can be particularly interesting under TOU pricing.

A conventional electric water heater may heat water periodically throughout the day.

If your system supports scheduling or smart control, you may be able to concentrate heating during lower-cost periods.

Some systems can also take advantage of stored hot water.

For example, a household could heat water during an off-peak period and then use that stored hot water later.

However, water heating requires more careful planning than simply plugging in a washing machine.

You should consider:

• Household hot-water demand
• Tank size
• Recovery rate
• Temperature settings
• Manufacturer requirements
• Anti-legionella or sanitation requirements where applicable
• Whether the system has a dedicated TOU control mode

Don’t disable required safety or hygiene functions just to save electricity.

EV Charging and Time-of-Use Rates

Electric vehicle charging is one of the clearest examples of why TOU pricing changes the best time to use electricity.

An EV may consume many kilowatt-hours during a charging session.

If the vehicle doesn’t need to be fully charged immediately, charging can often be scheduled for a lower-cost period.

For example:

Expensive period: 5 p.m.–9 p.m.
Cheaper period: 11 p.m.–6 a.m.

Instead of charging immediately after arriving home, the vehicle could begin charging later.

Many EVs and chargers include scheduling features specifically suited to this type of load management.

The same principle applies to home battery systems: energy can potentially be stored when electricity is cheaper and used later when electricity is more expensive, depending on the equipment and tariff.

The DOE describes this type of energy time-shifting as a way customers can charge storage during lower-priced periods and use the stored electricity during higher-priced periods.

What About Refrigerators and Freezers?

Refrigerators and freezers are different.

You generally cannot simply move their electricity use to off-peak hours because they need to maintain temperature continuously.

Don’t unplug a refrigerator during peak hours as a money-saving strategy.

Modern refrigerators cycle their compressors and controls automatically. Their electricity consumption changes naturally based on temperature, door openings, defrost cycles, and other factors.

For always-on appliances, focus on:

• Proper temperature settings
• Good door seals
• Clean ventilation areas
• Efficient models
• Minimizing unnecessary door openings
• Correct installation and airflow

TOU pricing is most useful for flexible loads, not appliances that need continuous operation.

What About Air Conditioning?

Air conditioning presents a more complicated situation.

You generally cannot simply turn off cooling throughout peak hours without considering comfort, indoor temperature, humidity, weather, and health needs.

However, smart thermostats and properly designed HVAC systems can sometimes shift or reduce electricity consumption around peak periods.

For example, a home might be pre-cooled during a lower-cost period and then allow the indoor temperature to rise slightly during the most expensive hours.

Whether this saves money depends on:

• Outdoor temperature
• Building insulation
• HVAC efficiency
• Thermostat settings
• Electricity rates
• Household comfort requirements

The DOE has emphasized that the value of electricity savings can vary significantly depending on location, season, and rate structure.

So don’t treat HVAC like a dishwasher.

A Simple Formula for Calculating TOU Savings

You don’t have to guess whether shifting an appliance is worthwhile.

Use this basic formula:

Savings = Appliance energy use × (Peak rate − Off-peak rate)

Suppose a dryer uses:

4 kWh per cycle

And your tariff is:

Peak: $0.30/kWh
Off-peak: $0.15/kWh

The cost during peak would be:

4 × $0.30 = $1.20

The cost during off-peak would be:

4 × $0.15 = $0.60

Potential timing-related savings:

$1.20 − $0.60 = $0.60 per cycle

If you shift 12 cycles per month:

12 × $0.60 = $7.20 per month

That’s $86.40 per year, assuming the rates and usage remain unchanged.

This example is intentionally simplified. Real electricity bills can include taxes, fixed charges, delivery charges, demand charges, adjustments, or other components.

The DOE notes that utility bills can include different components, including energy charges, demand charges, and fixed charges.

Why Your Electricity Bill May Not Drop as Much as Expected

This is where many TOU articles oversimplify the issue.

Moving appliances to cheaper hours doesn’t automatically mean your entire electricity bill falls dramatically.

There are several reasons.

Fixed Charges

A monthly fixed charge generally doesn’t change when you shift appliance usage.

Taxes and Fees

Some charges may be calculated separately from the energy rate.

Demand Charges

Certain tariffs include demand charges based on peak power consumption.

The DOE explains that demand charges can be based on maximum demand during a specified period.

For households, the exact treatment depends on the tariff.

Small Appliance Loads

If an appliance uses very little electricity, the rate difference may produce only a small saving.

Low Peak-to-Off-Peak Price Difference

If peak electricity costs only slightly more than off-peak electricity, moving an appliance may not be worth changing your routine.

The Best Appliance Scheduling Strategy

Rather than trying to schedule every appliance around the clock, use a priority system.

Priority 1: High-energy flexible appliances

Start with:

• Electric water heaters
• EV chargers
• Clothes dryers
• Washing machines
• Dishwashers
• Pool pumps
• Large electric heating loads

Priority 2: Moderately flexible appliances

Then consider:

• Ovens
• Electric cooking equipment
• Some HVAC operation
• Dehumidifiers
• Home battery charging

Priority 3: Low-impact devices

Don’t spend excessive effort scheduling:

• Phone chargers
• Small electronics
• LED lights
• Small fans

The amount of energy involved may be too small to justify complicated scheduling.

How to Find Your Cheapest Electricity Hours

Don’t rely on a random online chart.

Start with your electricity provider.

Look for:

• TOU tariff
• Time-of-use schedule
• Peak hours
• Off-peak hours
• Shoulder or mid-peak hours
• Seasonal schedule
• Weekend rates
• Holiday rates
• Super-off-peak rates

The EIA notes that it does not publish retail peak and off-peak electricity prices because those rates are determined by individual utility tariffs. Consumers therefore need to check their utility’s specific rate information.

Your bill may also identify the rate plan you’re currently using.

Example: Creating a Household Appliance Schedule

Imagine a hypothetical household has these rates:

Peak: 4 p.m.–9 p.m.
Shoulder: 9 a.m.–4 p.m.
Off-peak: 9 p.m.–9 a.m.

A practical schedule could look like this:

Appliance	Preferred window
Washing machine	After 9 p.m.
Dishwasher	After 9 p.m.
Dryer	After 9 p.m.
EV charger	Overnight
Water heater	Scheduled off-peak periods
Pool pump	Overnight or other low-cost period
Refrigerator	Continuous operation
HVAC	Smart scheduling where appropriate
Cooking	Based primarily on household needs

The goal isn’t to make the household operate like a power station.

The goal is to move flexible electricity demand away from expensive periods.

Weekends Can Change the Equation

Some TOU plans have different pricing on weekends.

For example, a weekday evening may be expensive while the same period on Saturday could have a different rate.

That means weekend laundry, dishwashing, or other flexible activities may sometimes be more attractive.

But again, don’t assume.

Check your tariff.

A schedule such as “always run appliances after 9 p.m.” can be less effective than a schedule based on your actual weekday and weekend rates.

Seasonal Rates Can Change the Best Time

TOU schedules may also change by season.

A utility could have:

• Summer peak periods
• Winter peak periods
• Different rates in spring and fall
• Special summer pricing
• Different weekend rules

The Department of Energy notes that electricity pricing can vary by time of day and season under time-variable pricing structures.

This means your appliance schedule may need to change during the year.

A timer programmed in January may not be optimal in July.

Smart Plugs Can Help—But Only for Suitable Devices

Smart plugs can make appliance scheduling easier.

You can use them to create schedules such as:

Dishwasher → start at 11 p.m.

Water pump → operate from 1 a.m. to 4 a.m.

EV charger → begin at midnight

However, never use a smart plug with equipment unless the plug is properly rated for the device’s electrical load and the manufacturer permits that type of control.

High-power appliances such as heaters, dryers, ovens, and other large loads can require specialized controls rather than an inexpensive consumer smart plug.

When in doubt, follow the appliance manufacturer’s requirements and use an appropriately rated control system.

Smart Appliances Can Automate Load Shifting

Some newer appliances can communicate with energy-management systems or respond to utility programs.

The advantage is convenience.

Instead of remembering:

“Start the dishwasher at 11 p.m.”

You can potentially configure the system to automatically delay operation until a preferred pricing period.

The DOE has highlighted smart appliances and grid-interactive technologies as tools that can make household electricity demand more responsive to grid conditions and pricing.

This can be especially useful for households with several flexible loads.

When You Shouldn’t Shift an Appliance

Saving money shouldn’t override safety or basic household needs.

Don’t shift appliance operation if doing so would:

• Create a fire hazard
• Overload a circuit
• Violate manufacturer instructions
• Cause excessive heat or humidity
• Create a water leak risk
• Interfere with required medical equipment
• Create unsafe conditions
• Cause unacceptable indoor temperatures
• Require leaving equipment unattended when it shouldn’t be

For example, running a dishwasher overnight may be convenient for one household but undesirable for another.

The cheapest electricity period isn’t automatically the safest or most practical period.

TOU Rates vs. Energy Efficiency

TOU scheduling and energy efficiency are two different strategies.

Energy efficiency

You reduce the amount of electricity required.

Examples:

• Use an efficient appliance.
• Wash clothes with cooler water.
• Improve insulation.
• Reduce unnecessary HVAC operation.
• Replace inefficient lighting.

Load shifting

You use electricity at a different time.

Examples:

• Run the dishwasher at night.
• Charge an EV overnight.
• Operate a water heater during off-peak hours.

You can combine both.

For example:

Efficient washing machine + cold-water cycle + off-peak operation

can address both electricity consumption and electricity timing.

Is a Time-of-Use Electricity Plan Worth It?

That depends on your household’s actual electricity habits.

A TOU plan can be more attractive when you have:

• Flexible schedules
• An EV
• Electric water heating
• Frequent laundry
• A dishwasher
• Smart appliances
• Home energy storage
• The ability to shift electricity use away from peak hours

It may be less useful if most of your electricity consumption occurs during expensive periods and cannot easily be moved.

The Energy Saving Trust similarly notes that the value of a time-of-use tariff depends partly on how flexible a household is in changing when it uses electricity.

The best approach is to compare your actual usage with the alternative tariff rather than assuming TOU pricing will automatically reduce your bill.

A Quick TOU Appliance Checklist

Before moving an appliance to off-peak hours, ask:

1. Am I actually on a TOU plan?

If not, timing may not affect the energy price.

2. What are my peak hours?

Find the exact schedule from your provider.

3. What are my off-peak hours?

Don’t assume they’re overnight.

4. Does the appliance consume meaningful electricity?

Focus on bigger loads first.

5. Can I safely delay operation?

Safety comes before savings.

6. Does the appliance have a timer?

If yes, scheduling becomes easier.

7. Are weekends priced differently?

Check the tariff.

8. Does the schedule change seasonally?

Check before assuming your routine works all year.

9. Are there demand charges?

If applicable, understand how they work.

10. How much will I actually save?

Calculate the rate difference instead of guessing.

Common Mistakes to Avoid

Mistake 1: Assuming electricity is always cheaper at night

Nighttime is often an off-peak period, but not universally.

Mistake 2: Ignoring your actual tariff

Online advice may describe a different utility.

Mistake 3: Trying to schedule every appliance

Focus on meaningful, flexible loads.

Mistake 4: Confusing energy savings with cost savings

Using 100 kWh instead of 150 kWh is an energy reduction.

Using the same 150 kWh at a cheaper time is primarily a cost-shifting strategy.

Mistake 5: Ignoring safety

Never create an unsafe appliance routine for a small electricity saving.

Mistake 6: Forgetting seasonal changes

Your utility may change its peak schedule.

Mistake 7: Ignoring weekends

Weekend pricing can differ under some plans.

Mistake 8: Looking only at the advertised energy rate

Your total bill can include other charges.

How Much Can You Save by Changing Appliance Times?

There isn’t one universal savings number.

Your potential savings depend on:

• Appliance consumption
• Number of cycles
• Peak price
• Off-peak price
• Number of hours shifted
• Seasonal pricing
• Other bill charges
• Your current electricity plan

For example, shifting a 4-kWh dryer load from $0.30/kWh to $0.15/kWh saves approximately $0.60 for that cycle before considering other bill components.

But shifting a 0.05-kWh phone charger would save almost nothing.

That’s why load size × rate difference × frequency is a better way to prioritize appliances.

The Bottom Line

Time-of-use electricity rates change the best time to run appliances because electricity doesn’t necessarily cost the same throughout the day.

If your utility charges higher rates during peak periods, flexible appliances can often be moved to lower-cost periods.

The biggest opportunities are usually appliances that:

• Consume substantial electricity,
• Operate for predictable periods,
• Don’t need to run immediately,
• And can be safely scheduled.

For many households, that means looking first at the washing machine, dryer, dishwasher, electric water heater, EV charger, and other flexible high-energy loads.

But there is no universal “best time” for every home.

The correct strategy is to start with your electricity provider’s current tariff, identify the peak and off-peak periods, estimate the energy consumption of your largest flexible appliances, and then shift those loads where the potential savings justify the change.

Most importantly, remember that TOU pricing is about timing electricity use, while energy efficiency is about reducing electricity use. Combining both strategies can give you a more effective approach to managing household energy costs.

Frequently Asked Questions

Is electricity always cheaper at night?

No. Many TOU plans have cheaper overnight periods, but the actual schedule depends on the utility and tariff. Some plans may also have cheaper daytime, weekend, or seasonal periods.

What is the cheapest time to run appliances?

There is no universal cheapest time. The cheapest period is the lowest-priced period on your specific electricity tariff.

Does running a washing machine at night save money?

It can if you are on a TOU plan and nighttime electricity is cheaper than the period when you would otherwise run the machine.

Is it cheaper to run a dishwasher at night?

It can be. Dishwashers are generally flexible loads, so using a delayed-start feature during an off-peak period may reduce the energy charge under a TOU tariff.

Should I run my dryer at night?

If your electricity tariff has cheaper nighttime electricity, shifting dryer use to that period can reduce the energy cost of those cycles. Always follow the manufacturer’s safety and ventilation requirements.

What appliances use the most electricity?

The answer depends on the appliance, usage pattern, efficiency, household, and climate. Large heating and cooling loads, water heating, clothes drying, and EV charging can represent substantial electricity consumption in many homes.

Does a smart meter automatically mean I have TOU rates?

Not necessarily. A smart meter can measure electricity usage at intervals, but whether you are billed under a TOU tariff depends on your utility and rate plan. The DOE notes that advanced meters can record hourly or 15-minute consumption, while rate structures are separately determined by the utility.

Can I save money without using less electricity?

Potentially. If you are on a TOU plan, shifting the same electricity consumption from a high-priced period to a lower-priced period can reduce the energy cost without necessarily reducing total kWh.

Are weekends cheaper on TOU plans?

Sometimes. Some utilities offer different weekend or holiday pricing, while others don’t. Check your tariff rather than assuming.

Should I switch to a TOU electricity plan?

The answer depends on your actual usage pattern, available rates, and ability to shift electricity consumption. Compare your current bill with the TOU plan’s complete pricing structure before switching.

Final TOU Appliance Strategy

If you want a simple starting point, use this five-step process:

1. Find your tariff.
Identify whether you’re actually on a TOU plan.

2. Mark the expensive hours.
Put your peak periods on your calendar.

3. Find your biggest flexible loads.
Start with EV charging, water heating, laundry, drying, dishwashing, and similar loads.

4. Move them into lower-cost periods.
Use timers, delayed-start settings, or appropriate energy-management controls.

5. Review your bill.
After a billing cycle or two, compare actual usage and costs.

The objective isn’t to run appliances at a particular clock time simply because someone online said it was cheaper.

The objective is to match your appliance schedule to the rate structure you’re actually paying for.