When is the Cheapest Time to Use Electricity?
This article is your complete guide when solving the question, when is electricity cheapest? And the truth is learning the moving parts which factor into the cheapest time of day to use electricity is important when trying to become more energy efficient. In this article we’ll break down everything you will need to consider when trying to find the cheapest time to use electricity for your home or business. It’s even more important to understand these factors now as many suppliers are now offering time of use plans to their customers.
That includes a guide to electricity rates by time of day, if energy is cheaper at night and we will even break down when energy rates are at their lowest to renew your supply contract. We hope you find this article helpful, and if you would like to find out how you can save money on your next energy contract and become more energy efficient be sure to speak with us at the office at 888-836-9222 or chat with us on our website!
So if you’re ready to read about the cheapest time to use electricity read on!
When is Electricity Cheapest?
It’s important to keep in mind that there is both a cheapest time of year and the cheapest time of day to use electricity. These times are when the demand for electricity prices are at the lowest and consumers can get the best deal and pay the lowest electricity price possible. The one important factor when trying to find the cheapest electricity is to understand how the electricity market is traded and sold.
Electricity rates by hour
Electricity consumption by residential customers and businesses are tracked and sold by on-peak electricity rates and off-peak electricity rates. These rates are set and tracked by the hour, so their will be a time of day when electricity is the cheapest.
What are the peak hours for electricity?
On-peak hours for electricity consumers are when residential and businesses are using energy the most. These hours will typically fall within the hours of the day when most people are up and working. The on-peak hours in New York City are 7:00 AM – 11:00 pm Monday – Friday.
What are the off-peak hours for electricity?
Off-peak hours are when demand for the commodity are at it’s lowest and will fall during the hours when folks are sleeping. In New York City off-peak hours are between 11:00 PM-7:00 AM Monday-Friday and 11:00 PM on Friday night until 7:00 AM Monday morning.
When is the Cheapest Time of Day to Use Electricity?
As you can probably have guessed, the cheapest time to use electricity is later in the evening or early morning. During which, there is less demand for electricity and thus costs a little bit less. And because nighttime tends to be the cheapest time of day to use electricity, it also makes for one of the best times to pull energy usage onto any battery panels that you have installed at your home or business.
What time is electricity the cheapest?
- 11:00 PM – 6:00 AM
This doesn’t necessarily mean that energy stays the same price during these hours above, or from the time the sun rises to when it sets. For example, it’s usually cheaper to use electricity early in the morning than it would be around 3-4 p.m. It’s important to keep in mind that specific off-peak electricity and on-peak electricity hours may differ depending on your location and electricity provider.
Time of Use Energy Plans For Your Business
So what is the best way to get the lowest energy prices? We’ll if you are willing to make some adjustments to the way you consume electricity and take advantage of energy efficient upgrades, a time of use energy plan might be a great fit for your small business. The great news is that many suppliers now offer time of use energy plans. In these plans, the amount you’ll pay will vary because it’s based on the time of day you consumed energy. While in a standard plan, you’ll (typically) pay the same rate regardless. This is a popular option for some commercial building owners who don’t mind running operations overnight when prices would be lower. However, sometimes these plans can cost you more in the long run. So as always, be sure to do your research and talk to your supplier before making any decisions!
You can save even more money with TOU energy plans by installing solar panels. When you send surplus solar energy back to the grid, your supplier will give you credits toward your energy bill.
When is the cheapest time of year to use electricity?
Demand for energy is at its highest during the summer and winter, and so the cheapest time to use electricity is during the fall and spring. This is due to the increase in demand for air conditioning in the summer and for heat in the winter. Obviously, the amount prices fluctuate will depend somewhat on the climate of where you live.
Are electric rates higher in summer or winter?
This also depends on where you live. If you live in a state with colder winters and average summers, then electric rates would be higher in winter. However, on average in the US, electric rates tend to be a bit higher in the summer.
Related post: Energy Conservation Tips to Reduce Business Expenses
How to Find the Cheapest Electricity Contract?
A good electricity rate depends on what state you’re located in. In states with lowest electricity rates, like Oklahoma, a cheap electricity plan would be under $0.07 per kWh (the average commercial rate). Whereas in New York, the average commercial rate would be double that. When you shop electricity rates, it’s always a good idea to know your state’s average rate per kWh.
Finding the best electricity plan
The best electricity plan may not necessarily come from the cheapest energy provider and rate. Always do your research and compare best electricity prices that fit the needs of your business. Your rate will depend on:
- Type of energy source
- Contract length
- Whether you choose a fixed or variable rate
- Time of year you’re signing up
- Your energy supplier’s service charge
- Any applicable state taxes/regulations
Occasionally, energy market rates may cause prices to dip or rise, which will also impact your kWh rate.
Factors that influence energy market rates
The most unpredictable factors that influence electricity prices are natural and accidental disasters. However, these both influence prices because they influence the driving force behind market rates: Supply and demand. When there’s some kind of disaster that causes a shortage of natural gas, for example, the cost of gas will then surge because the supply can’t meet the demand.
We can apply this same principle to the cheapest times to use electricity. The reason there are seasons and certain hours of the day where the demand for electricity is lower, so are your rates! So when is electricity cheapest?
What is the Best Time to Renew Energy Contract?
Generally speaking, the best time to renew your energy contract is in the fall or spring when demand is lower. A lot of business owners choose a fixed-rate plan so they can lock these lower prices in to avoid a price surge in peak months. It’s important to note that most energy providers will usually factor in the price difference when pricing your rate if your contract extends through those peak seasons.
So, to get the absolute cheapest electricity rates immediately, you’d probably need to choose a variable plan during the spring or fall. However, a fixed-rate plan usually results in more long-term savings. While you consider which option is best for you, be sure to also research your city and state’s energy market price trends. This can help you narrow down which time is the best time to renew your electricity contract.
When is the best time to find a new electricity provider?
The best time to find a new electricity provider depends on the current and future needs of your business. Although it never hurts to know your options and compare electricity prices, be sure to review your current contract if you’re considering breaking it. You may have an early termination clause. Additionally, while it may seem like you’re getting the lowest electric rates by choosing the variable rate, month-to-month electricity plans, you could actually be spending more in the long run.
Does your electric rate seem too high? At Aggressive Energy, our team of experts is here to craft an energy plan tailored to your specific needs. We’ll help you find the lowest electric rates possible and give you the tools you need to manage your energy use.
Contact us today to learn how we can work for you!