Time-of-Use (TOU) Pricing

Time-of-Use (TOU) pricing adjusts electricity rates based on the time of day, charging higher prices during peak demand and lower prices when demand is lower.

How It Works
Utilities divide the day into peak, off-peak, and sometimes mid-peak periods. Prices are highest during peak demand and lowest overnight or midday when usage drops.

Grid & Cost Benefits
TOU pricing shifts energy use to off-peak hours, easing grid strain, reducing overall electricity costs, and encouraging more efficient energy consumption.

Adoption & Growth
With smart meters and automation, TOU pricing is expanding, helping utilities balance demand while enabling consumers to cut costs by shifting usage to off-peak hours.