5 reasons to switch to a time-of-use tariff

Households across Ireland are already benefitting from smart meter plans that reward them for using electricity at a time of lower demand. With a time-of-use tariff, your electricity price changes depending on when you use energy, giving you more control over your bills and helping you make better use of off-peak rates.

In this article, we’ll explain how a time-of-use tariff works, the typical time bands, and five key reasons to switch.

What are time-of-use tariffs?

Time-of-use tariffs are electricity plans that can help you save money by encouraging you to use electricity during off-peak times. 

Instead of paying the same rate for electricity all day, you pay different rates during day, night and peak periods. This means you can save money by shifting some of your electricity use to cheaper times.

At Energia, a time-of-use tariff on a smart meter has the following three time bands:

• Night (Lowest rate): 11pm - 8am           
• Peak (Highest rate):  5pm - 7pm
• Day (Moderate rate): 8am-5pm, 7pm-11pm  

Benefits of switching to time-of-use tariff

There are many advantages of making the switch to a time-of-use tariff. Here are five reasons to consider making the switch.

1. Save money with off-peak rates

The top reason for switching to a time-of-use tariff is that it helps you unlock savings on your electricity bills. Day/night/peak plans offer discounted electricity rates at times when there is less demand for electricity. By making simple changes to the way you use electricity, you can easily cut your energy costs.

Some of the top ways of achieving this are:

• Setting appliances for off-peak times: 

Set your dishwasher, washing machine and other appliances to start their programmes when electricity is cheapest. This will usually mean scheduling them to start when your night rate begins or early in the morning.

• Batch cooking when electricity is cheaper: 

Instead of switching on the cooker at peak times when most people are making dinner, batch cook meals when your time-of-use plan offers cheaper electricity price plans.

2. Make EV charging and battery storage more affordable 

A time-of-use tariff can be especially useful for EV owners and households with battery storage.

If you have an electric vehicle, overnight charging can be one of the easiest ways to benefit from cheaper rates. Instead of charging during evening peak hours, you can schedule your EV to charge when electricity demand is lower. At Energia, we also offer discounted EV charging rates between 2am and 6am.

3. Reduce pressure on the electricity grid

Switching to a time-of-use tariff does not just benefit your household. It can also help reduce pressure on the wider electricity grid.

Electricity demand is usually highest in the early evening, when people return home, cook dinner, use appliances and heat their homes. A time-of-use tariff encourages households to move some usage away from this busy period. When more people shift usage to off-peak times, it can help reduce demand during peak hours, make the grid easier to manage and lower the need for expensive infrastructure upgrades.

4. Track and manage your usage

Time-of-use tariffs are smart meter plans. This means they give you detailed insights on your electricity use. By tracking your energy usage, you can manage or change how you’re using your electricity.

That means no nasty surprises when your bill arrives. Instead, you get detailed insights and the opportunity to take action during your billing cycle.

All this data is at your fingertips when you sign up for Energia’s Energy Insights app. You’ll be able to see:

• Your usage and costs by hour, day, week or month: 

Check your electricity use over various periods. Easily spot high-usage times and make changes to cut your costs.

• Track your performance: 

Set budgets in € for how much you want to spend on electricity. Get at-a-glance graphics showing how you’re doing against your targets.

• Estimates on energy-guzzling appliances: 

See which appliances are likely to be using the most energy in your home based on your usage. These insights help you identify appliances that are pushing up your energy bills. You can then change how and when you use them.

• Comparisons to other households: 

Track your energy usage against other homes in Ireland. Find out how your electricity use and bills compare to similar households. This can be useful for seeing if you’re doing well or whether there’s room for improvement.

• Tips on reducing your usage: 

You’ll find personalised tips and advice on how to cut your electricity usage. These snippets of useful information will guide you towards ways to save on your bills. 

5. Support renewable energy

Switching to day/night/peak tariffs also has environmental benefits. By shifting your energy use, you're reducing Ireland’s reliance on fossil fuels — and supporting a cleaner grid.

Here are a few key ways in which time-of-use tariffs support renewable energy in Ireland:

• Reducing peak electricity demand: 

When you move to a time-of-use tariff, you’re helping to ease electricity demand at peak times. This makes it easier to manage demand across the grid. The result is that more of Ireland’s electricity demand can be met using renewable energy instead of fossil fuels. Good for energy bills and good for the environment. With smart meters now in place, Ireland is also moving towards dynamic electricity pricing, where prices can vary more frequently based on real-time renewable generation and grid demand.

• Maximising solar energy: 

Many time-of-use plans offer a daytime electricity rate that is cheaper than the peak rate. This encourages electricity use at times when the grid is generating lots of solar power. Make the most of green, sustainable energy provided by the sun during daylight hours.

• Supporting battery storage: 

If you have solar panels with battery storage, time-of-use pricing enables you to charge your battery when electricity is less expensive. You can then use your stored battery energy at peak times, when importing from the grid is more expensive.

You’ll earn from selling solar power to the grid under our microgeneration scheme. Enjoy financial benefits whether you or someone else uses the cheap solar power you’ve generated.

FAQs: Time-of-Use Tariff

What is the time-of-use tariff in Ireland?

A time-of-use tariff in Ireland is a smart meter electricity plan where your rate changes depending on whether you use power during day, night or peak hours.

What is the cheapest time to use electricity in Ireland?

The cheapest time to use electricity in Ireland is usually overnight, often from around 11pm to 8am. 

Is a time-of-use tariff good for EV owners?

Yes, a time-of-use tariff can be useful for EV owners because they can schedule charging during cheaper overnight periods. Energia offers discounted rates between 2am and 6am.

What is the cheapest time to run a washing machine?

The cheapest time to run a washing machine is usually during your tariff’s off-peak or night-rate period.