How to maximize savings with a time-of-use electricity plan

When you know which time of day your home uses the most energy, even small shifts on a time-of-use (TOU) electricity plan can add up to meaningful savings.

Many homeowners and renters are exploring time‑of‑use electricity as an adaptable way to make their energy habits work smarter. These plans reward you for moving certain activities to lower‑cost hours. And with a few helpful automations, fitting a TOU plan into your lifestyle becomes even easier.

What is time-of-use electricity?

In a deregulated energy market like Texas, time-of-use electricity plans reward you for using energy during lower-demand times of the day. Wondering which electricity plans are TOU? If you've heard of "free nights" or "free weekends" plans, those offers are also referred to as “time-of-use” plans.

How time-of-use electricity rates work in Texas

You can think of plans like our Truly Free Nights and Truly Free Weekends as an “off-peak pass” for your home’s electricity. When you avoid the busiest “rush hours” or peak hours, these plans reward you for using electricity during specific windows. Instead of paying one flat rate all day long, your electricity price changes based on when you use it. 

Peak vs. off-peak hours explained

Time-of-use electricity plans, for example, break the day into two parts:

• Peak hours: When energy demand in Texas is highest like summer afternoons. The rate is usually higher during these times.
• Off-peak hours: When energy demand drops in Texas like late at night. On a TOU plan, your rate during these hours drops significantly, sometimes all the way to zero.

Why choose a time-of-use electricity plan?

Finding an energy plan that works for you is all about matching your electricity to your lifestyle. If you’re a night owl who runs the dishwasher after 9 p.m., or if you prefer to have laundry day on Saturdays, a time-of-use plan lets you take advantage of those lower-cost windows. By shifting your biggest energy tasks away from peak times, you can manage your energy usage and savings more effectively. For time-of-use plans, it’s less about what you do and more about when you do it.

Time-of-use vs. fixed-rate electricity plans

Choosing between a TOU plan and a traditional fixed‑rate plan depends on your lifestyle and when you typically use the most electricity. While TOU plans are technically a type of fixed‑rate plan, offering a set price per kWh under contract, they work differently by rewarding you for shifting usage to off‑peak or “free” periods.

A traditional fixed‑rate plan maintains the same price per kWh at all times, making budgeting straightforward if your household uses electricity consistently throughout the day.

If you prefer predictable billing and don’t want to think about shifting tasks, a traditional fixed‑rate plan may be the better fit. But if you can move high‑usage activities like laundry, cooking or electric vehicle (EV) charging into lower‑cost or free windows, a TOU plan can help lower your monthly bill.

Discover smart ways to save with time‑of‑use electricity plans

Here’s how you can start increasing energy efficiency at home with a TOU plan by shifting key activities and using smart strategies during your free or reduced‑rate hours.

Smart ways to make the most of your TOU plan

Focus on high‑impact tasks that you can do during your plan's TOU period, like free nights or weekends. Once you’ve adjusted one or two routines, you can layer in additional habits to increase your savings.

• Air conditioning and heating: Precool or preheat your home before peak hours, then let your thermostat gradually adjust during busier times.
• Cooking with electric stoves and ovens: Prep or cook meals earlier in the evening, then reheat leftovers during peak periods to reduce high‑demand usage.
• Electric vehicle charging: Schedule EV charging to begin after 9 p.m. or set it to charge overnight during your plan’s free window.
• Home electronics and gadgets: Plug devices into smart plugs or power strips you can program to charge phones, tablets and small devices overnight.
• Laundry: Delay start time for washers and dryers so loads begin during off‑peak hours or free weekend windows.
• Lighting: Use timers or smart bulbs to dim or automatically turn lights off while ensuring your lights operate mainly during off‑peak hours.
• Refrigeration: Avoid opening the fridge repeatedly during peak hours and shift tasks like making ice to off‑peak times.
• Using a dishwasher: Use the delay‑start setting so your dishwasher runs automatically after 9 p.m.
• Water heating: Use timers to schedule water heaters or pool pumps to run during your plan’s free hours.

Smart home tools can help you automate these shifts, simplifying your life as you integrate devices or set custom schedules. Explore our Truly Free Time tips for ideas to plan high‑usage activities during your free hours.

Is a time-of-use electricity plan right for your home in Texas?

When you choose a plan that fits your lifestyle, you can maximize your savings. Here’s what Reliant customers enjoy about our three different TOU plans: 

Take more control of your energy use

A simple way to evaluate what works best for you is to review your past electricity usage patterns to see when you use energy the most throughout the day. Then, take what you know about your usage and compare it to how TOU and fixed‑rate plans align with your lifestyle.

Ultimately, understanding time‑of‑use electricity options empowers Texas residents to make informed decisions about their energy plans and potentially reduce their monthly costs. If you’re ready to explore whether TOU pricing makes sense for your home, Reliant is here with helpful tools and flexible plan options to fit your lifestyle.