Short answer: on a time-of-use (TOU) plan, the price of electricity depends on when you use it. Peak hours (often late afternoon and evening) cost more; nights and middays cost less. If you can move big loads like EV charging, laundry and dishwashing out of the peak window, TOU usually saves money. If you can’t, it can cost more.
How TOU works
- Peak: the most expensive hours, when the grid is busiest. For most PG&E plans in California, that’s 4-9 p.m. every day.
- Off-peak: cheaper hours, usually overnight and sometimes midday.
- Partial-peak or shoulder periods on some plans.
- Seasons: summer peak prices are usually higher than winter ones.
Real example: PG&E plans
| Plan | Peak window | Summer peak | Summer off-peak | Winter peak | Winter off-peak |
|---|---|---|---|---|---|
| E-TOU-C | 4-9 p.m. daily | 44-52¢ | 32-40¢ | 32-40¢ | 29-37¢ |
| E-TOU-D | 5-8 p.m. weekdays | 48¢ | 34¢ | 39¢ | 35¢ |
| E-ELEC | 4-9 p.m. daily | 39¢ | 33¢ | 30¢ | 28¢ |
Rates effective March 2026, per EnergySage (Sept 2026). Your utility’s plans, hours and price gaps will differ; some utilities offer EV-specific plans with very cheap overnight hours.
Worked example
A household moves 300 kWh a month (mostly EV charging, plus laundry and dishwasher) from 4-9 p.m. to after 9 p.m. Using the E-TOU-C summer prices above, the gap is about 12 cents per kWh:
300 kWh × $0.12 = about $36 a month in summer (June through September). In winter, the E-TOU-C gap is only about 3 cents, so the same shift saves about $9 a month.
The 4-step test before you switch
- Download your hourly usage from your utility account (smart meters record it).
- Use your utility’s rate comparison tool; most show what last year would have cost on each plan.
- List what you can move: EV charging, laundry, dishwasher, pool pump, pre-cooling the house before peak.
- Check what you can’t: cooking dinner and evening air conditioning in hot climates often fall in the peak.
Tools that make TOU easy
- EV charging schedules in the car or charger app. See Level 1 vs Level 2.
- Delay-start buttons on dishwashers and washers.
- Smart thermostats that pre-cool or pre-heat before peak. See smart thermostat savings.
- Home batteries that charge off-peak or from solar and power the home at peak.
Solar owners
With low export credits, such as under California’s net billing, TOU timing becomes even more important: evening power is expensive and midday exports earn little. That’s the main case where a battery pays off. See are home batteries worth it.
FAQ
Can I switch back? Most utilities let you return to a standard plan, sometimes with limits on how often. Check the terms.
Is TOU mandatory? Some utilities make it the default for new customers; you can usually opt out.