Last updated: June 2026
What Is Time-of-Use (TOU) Electricity?
Most residential electricity customers pay a flat rate — the same price per kWh regardless of when you use electricity. But many utilities now offer (or require) time-of-use (TOU) rate plans that charge different prices depending on the time of day and season.
TOU plans typically have:
- Off-peak hours: Midnight–6am (cheapest electricity, sometimes 50% below peak rates)
- Mid-peak hours: 6am–2pm and 8pm–midnight (moderate rates)
- Peak hours: 2pm–8pm on weekdays (most expensive, sometimes 2-3x off-peak)
For EV owners, TOU plans are a massive financial advantage — because you can schedule your EV to charge exclusively during off-peak hours, when electricity is cheapest.
How Much Can TOU Save You?
The savings depend on your utility's specific rate structure. Here are real examples from major US utilities in 2026:
Example 1: PG&E (California)
- Flat rate (E-1): 34.3¢/kWh (all day)
- TOU rate (E-ELEC): 48.2¢/kWh (peak, 4pm–9pm) / 22.7¢/kWh (off-peak, midnight–4pm & 9pm–midnight)
- Savings from charging overnight: 34.3¢ → 22.7¢ = 33.8% savings
- Annual savings (13,500 miles, 0.34 kWh/mile): $1,571 → $1,041 = $530/year
Example 2: Con Edison (New York)
- Flat rate: 26.1¢/kWh (all day)
- TOU rate: 38.4¢/kWh (peak, 2pm–6pm) / 15.2¢/kWh (off-peak)
- Savings from charging overnight: 26.1¢ → 15.2¢ = 41.8% savings
- Annual savings: $1,197 → $697 = $500/year
Example 3: ComEd (Illinois)
- Flat rate: 15.8¢/kWh (all day)
- TOU rate: 24.1¢/kWh (peak) / 9.4¢/kWh (off-peak)
- Savings from charging overnight: 15.8¢ → 9.4¢ = 40.5% savings
- Annual savings: $725 → $431 = $294/year
How TOU Plans Work with EV Charging
1. Enroll in a TOU Rate Plan
Contact your utility to enroll. Most utilities encourage EV owners to switch to TOU, because overnight charging makes better use of grid capacity. Some utilities even require TOU for customers with a Level 2 charger.
Enrollment is typically free and takes 1–2 billing cycles to take effect.
2. Schedule Your EV Charging
Every EV and every Level 2 charger supports scheduled charging. You set a "departure time" or "charging window," and the car/charger automatically starts charging during off-peak hours.
How to set it up:
- Tesla: In the Tesla app → Charge → Schedule → Set "Start Time" to your off-peak start (e.g., 11pm)
- Chevrolet/GM: In the myChevrolet app → Energy → Charging → Schedule
- Ford: In the FordPass app → Charging → Schedule
- ChargePoint/JuiceBox/Emporia chargers: In the charger's app → Scheduling → Set time window
3. Preconditioning (Don't Waste Your Savings)
Many EVs let you schedule "preconditioning" — heating or cooling the cabin while still plugged in, so you use grid power instead of battery power. This preserves your range and maximizes the value of your off-peak charging.
Weekend vs. Weekday TOU Rates
Many TOU plans have different rates on weekends (when peak demand is lower). For example:
- Weekdays: Peak = 2pm–8pm, Off-peak = midnight–6am
- Weekends: All day = off-peak or mid-peak (no peak period)
This means weekend charging is even cheaper. If you can wait until Friday night to charge (instead of charging mid-week), you'll save even more.
TOU + Solar Panels: The Ultimate Combo
If you have home solar panels, TOU plans work differently. During the day (when your solar panels are producing), you're on peak rates — but you're generating electricity, not buying it.
In many states with net metering, the excess solar electricity you send to the grid during the day is credited at the peak rate, while the electricity you use at night (from the grid or your battery) is charged at the off-peak rate. This "arbitrage" can save you an additional $200–$500/year.
Use our Solar + EV Savings Calculator to see how solar panels + TOU rates affect your total savings.
Utilities That Mandate TOU for EV Owners
Some utilities now require EV owners to be on a TOU rate plan. As of 2026, these include:
- PG&E (California): All new EV charger installations must be on a TOU rate
- SCE (California): Same requirement
- Eversource (Massachusetts/Connecticut): Optional but heavily incentivized
- Duke Energy (North Carolina): EV owners get a $10/month credit for being on TOU
Even when not mandated, TOU is almost always cheaper for EV owners who charge overnight. The only exception is if your utility has very low flat rates and very high peak TOU rates (rare).
How to Check Your Utility's TOU Rates
- Find your utility's name on your electricity bill
- Visit their website → "Rates" or "EV Programs" section
- Look for "Time-of-Use" or "TOU" rate schedules
- Compare: Flat rate vs. TOU rate (off-peak only) for your annual kWh usage
- Call the utility if anything is unclear — they can run a "bill comparison" using your actual usage history
Potential Downsides of TOU
TOU isn't always better. Consider these scenarios:
- If you can't charge at home (apartment, no charger): TOU doesn't affect you — you're using public chargers at fixed rates
- If you drive during peak hours and need mid-day top-ups: TOU peak rates will cost you more
- If your utility has a very high "customer charge": Some TOU plans add a fixed monthly fee ($10–$30) that eliminates your savings
- If you have an older home with limited electrical capacity: Some TOU plans require a "smart meter" installation ($50–$200), though this is often free
Bottom line: For 90%+ of EV owners who charge overnight at home, TOU plans save $200–$600/year. Always run the numbers for your specific situation.
State-by-State TOU Rate Summary (2026)
| State | Major Utility | TOU Available? | Peak Rate | Off-Peak Rate | Savings Potential |
|---|---|---|---|---|---|
| California | PG&E, SCE | Yes (often required) | 48.2¢ | 22.7¢ | High |
| New York | Con Edison | Yes | 38.4¢ | 15.2¢ | Very High |
| Illinois | ComEd | Yes | 24.1¢ | 9.4¢ | High |
| Texas | Oncor, CenterPoint | Yes (ERCOT market) | Varies by hour | Varies by hour | Very High (if you time it right) |
| Colorado | Xcel Energy | Yes | 18.2¢ | 11.4¢ | Moderate |
| Washington | PSE, Seattle City Light | Limited | N/A | N/A | Low (already cheap electricity) |
TOU Rate Optimization: Advanced Strategies
Once you're on a TOU plan, you can optimize further:
- Pre-cool or pre-heat your home: Run your AC/heat during off-peak hours to "bank" temperature (using thermal mass). In moderate climates, this can reduce peak-hour electricity use by 20-30%.
- Use "smart" appliances: Many modern washers, dryers, and dishwashers have "delay start" features. Set them to run at 2am instead of 6pm.
- Consider a home battery: Tesla Powerwall, Enphase, and LG Chem batteries can charge during off-peak ($0.12/kWh) and discharge during peak (avoiding $0.35/kWh). Payback period: 5-8 years. With an EV, a home battery is even more valuable — you can charge your car from the battery during peak hours (avoiding grid electricity entirely).
FAQ: Time-of-Use Electricity and EVs
No. TOU plans only save you money if you can shift electricity usage to off-peak hours. If you rely on public chargers, TOU doesn't affect you (public chargers have their own pricing, typically not TOU-based). However, some public charger networks (like EVgo) offer "membership plans" with off-peak discounts — similar concept, different application.
Most EVs and chargers have "schedule charging" features — once set, they automatically charge during off-peak hours. But if you need an emergency charge during peak hours, you'll pay 2-3x your normal rate. One emergency peak charge (adding 50 miles = ~15 kWh) might cost $5-$8 on peak vs $2-$3 off-peak — not ruinous, but adds up if it becomes a habit.
Yes, usually. Most utilities allow you to switch rate plans once per billing cycle (or once per 12 months for some specialized TOU plans). If you try TOU for 2-3 months and find your bill is higher, you can switch back. Just be sure to cancel any "smart charger" schedules you set up.
Yes. Every 2020+ EV supports scheduled charging via the car's infotainment system or mobile app. Even if you don't have a "smart" Level 2 charger, the car itself can control when it draws power. For 2017-2019 EVs (like the first-gen Nissan Leaf or Chevy Bolt), you may need to rely on the charger's scheduling feature instead of the car's.
Related Calculators
- Home Charging Cost Calculator — estimate your charging cost on TOU vs. flat rate
- EV Annual Savings Calculator — see total fuel savings including TOU benefits
- Solar + EV Savings Calculator — TOU + solar arbitrage