Peak vs. Off-Peak Cost Differences
- andy_mobiussolar
- Dec 30, 2024
- 4 min read
Peak vs. Off-Peak: Understanding the Cost Differences in Your Energy Bill
For homeowners in Missouri, understanding how electricity rates fluctuate throughout the day can be a game-changer. Utilities like Evergy Energy use Time-of-Use (TOU) pricing, which means the cost of electricity varies depending on when you use it. By knowing the difference between peak and off-peak hours, you can take control of your energy usage, lower your bills, and even reduce your environmental impact.
In this guide, we’ll explain what peak and off-peak hours are, how they’re priced, and how tools like whole-home batteries can help you optimize your energy use.
What Are Peak and Off-Peak Hours?
Electricity demand isn’t constant. It rises and falls throughout the day based on when people are most likely to use power. Utilities divide the day into three main periods:
Peak Hours: When electricity demand is highest, typically during the late afternoon and evening (4 p.m. to 8 p.m.).
Off-Peak Hours: Periods of lower demand, usually in the late evening and early morning.
Super Off-Peak Hours: Times of the lowest demand, often during the middle of the night (midnight to 6 a.m.).
Evergy’s TOU Rates in Missouri
For Evergy Energy customers, peak and off-peak pricing differs between summer and winter seasons. Here’s a breakdown of their current rates:
Summer Rates (June 1 - September 30):
On-Peak Hours (4 p.m. - 8 p.m.): $0.28129/kWh
Off-Peak Hours (All other times): $0.09376/kWh
Super Off-Peak Hours (Midnight - 6 a.m.): $0.04688/kWh
Winter Rates (October 1 - May 31):
On-Peak Hours (4 p.m. - 8 p.m.): $0.22892/kWh
Off-Peak Hours (All other times): $0.09237/kWh
Super Off-Peak Hours (Midnight - 6 a.m.): $0.03881/kWh
These rates highlight the stark differences in cost. By simply shifting your energy use to off-peak or super off-peak hours, you can save significantly.
Why Are Peak Hours More Expensive?
Peak hours are when the majority of households are using energy-intensive appliances like ovens, air conditioners, and televisions. To meet this high demand, utilities often have to:
Activate More Expensive Power Plants: These plants are less efficient and cost more to operate.
Strain the Grid: Higher demand increases wear and tear on infrastructure, raising maintenance costs.
To encourage people to shift their energy use, utilities charge higher rates during peak hours and offer discounts during off-peak times.
How to Save Money by Shifting Energy Use
To take advantage of off-peak and super off-peak rates, you can adopt simple strategies and technologies:
1. Adjust Your Habits
Run dishwashers, washing machines, and dryers after 8 p.m. or before 4 p.m.
Charge electronics, such as laptops and phones, overnight.
2. Automate Your Home
Use smart plugs and programmable thermostats to schedule appliances and heating/cooling systems to operate during off-peak times.
3. Invest in a Whole-Home Battery System
Store energy during off-peak hours and use it during peak periods, avoiding high rates altogether.
The Role of Whole-Home Batteries
A whole-home battery system is a powerful tool for optimizing energy use under TOU pricing. Here’s how it works:
1. Charge During Off-Peak Hours:
Batteries store electricity when rates are as low as $0.03881/kWh in winter.
2. Discharge During Peak Hours:
Use stored energy to power your home during on-peak periods, avoiding rates as high as $0.28129/kWh in summer.
3. Gain Backup Power:
Batteries provide reliable energy during outages, ensuring your home remains powered during storms or grid failures.
Example: Savings with a Battery System
Let’s calculate potential savings for a Missouri homeowner using a Tesla Powerwall 2 (13.5 kWh):
Daily Usage: 15 kWh during peak hours.
Without a Battery:
15 kWh × $0.28129 (peak rate) = $4.22 per day in summer.
With a Battery:
Charging Cost: 15 kWh × $0.04688 (super off-peak rate) = $0.70.
Daily Savings: $4.22 – $0.70 = $3.52.
Monthly Savings (30 days): $3.52 × 30 = $105.60 during summer months.
Over a year, these savings can add up to hundreds of dollars, making batteries a worthwhile investment.
Benefits Beyond Savings
While saving money is a big advantage, shifting energy use to off-peak hours also benefits the environment and the grid:
1. Reduced Carbon Footprint:
Off-peak energy often comes from cleaner, renewable sources.
2. Less Grid Strain:
Using energy during low-demand periods helps utilities maintain grid stability.
3. Greater Energy Independence:
Batteries and smart energy management systems put you in control of your home’s power needs.
Overcoming Common Misconceptions
1. “It’s too inconvenient to shift energy use.”
Smart home technology makes scheduling appliances and systems effortless.
2. “Batteries are too expensive.”
Federal tax credits and utility rebates significantly reduce the upfront cost of battery installations.
3. “The savings aren’t worth the effort.”
Small changes can lead to substantial savings over time, especially with a whole-home battery system.
Missouri Incentives for Whole-Home Batteries
Missouri homeowners can take advantage of various incentives to make battery installations more affordable:
Federal Investment Tax Credit (ITC):
30% tax credit for battery installations.
Utility Rebates:
Evergy and Ameren offer rebates for solar systems, which can be paired with batteries for enhanced savings.
Property Tax Exemptions:
Increased home value from solar or battery systems is exempt from property taxes.
Start Saving Today
Understanding the difference between peak and off-peak energy use is the first step toward lowering your electricity bill. By adjusting your habits and considering a whole-home battery system, you can:
Save money by avoiding high peak rates.
Gain energy independence with backup power.
Support a cleaner, more sustainable energy future.
Contact us today to learn how a whole-home battery system can help you maximize savings and take control of your energy use. Peak vs Off-Peak Cost Differences
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