Given the volatility of Ontario energy prices and time-of-use rates, the ability to better manage electricity costs is very critical. Knowing when your electricity is cheapest could potentially save you a huge amount off your monthly hydro bill and will give relief to your wallet while practicing responsible behavior with this resource. The Ontario Energy Board sets a regime of time-of-use electricity pricing, where charges vary throughout the day, depending on seasons and general demand for electricity. This article explains these factors in some detail and shares how to get the most from your electricity consumption, saving you money when possible through utilization of off-peak hours.
Is There a Time When Electricity Is at Its Cheapest in Ontario?
Yes, there is a specific time when electricity in Ontario becomes the cheapest due to TOU— Time-of-Use Pricing System. Off-peak hours in the evenings and during early morning hours are periods when electricity rates go for their lowest prices. This pricing structure provokes customers to conduct their electricity consumption during the low demand periods of the day to flatten the grid by taking strain off peak hours. For example, residents shifting power-consuming chores, such as running appliances or charging an electric vehicle, to these lower-rate times can save a lot on their hydro bills.
Time-of-Use Rates in Ontario
One of the dramatic factors of how electricity is being charged in every province is the time-of-use system adopted by Ontario. Put in place by the Ontario Energy Board, it has three major periods: off-peak, mid-peak, and on-peak. The times reflect a changing demand for electricity in the course of a day and are accompanied by appropriate rates, either to encourage or discourage usage at those times.
TOU Rates
TOU rates capture the ebbs and flows of electricity demand naturally. Rates are always cheaper off-peak—typically overnight and on weekends—simply because demand is very low. Next highest are mid-peak hours, with moderate demand, normally in the early morning and late afternoon.
Finally, on-peak hours are time ranges in the middle of the day and correspond to the highest prices because of the peak electricity use during such periods when businesses are operating at full magnitude and residents consume more at home.
For example, currently in Ontario, as summer 2024 stands, off-peak rates are just about 8.7 cents per kilowatt-hour, mid-peak rates are around 12.2 cents per kWh, and on-peak rates peak at 18.2 cents per kWh. This thus gives one an indication of the cost to be saved by deferring energy-consuming tasks to off-peak hours.
Seasonal Variations in TOU Rates
It's important to note that TOU rates in Ontario are not constant; they flatten out seasonally with electricity demand. Time-of-use summer seasons, May 1 to October 31, usually hit their peak during late morning to early afternoon when the most people use their ACs. On-peak winter time-of-use hours, November 1 through April 30, slide into the early morning and late afternoon owing to increasing heating demands.
This seasonal adjustment ensures that the pricing system appropriately captures the seasonal fluctuations in demand for electricity, producing the right incentives for the consumer to be more cautious regarding their energy use throughout the year.
Impact of TOU Rates on Energy Bills
The including effect of TOU rates to your bill can be actually very much huge, especially in the case when your usage pattern puts you consistently using electricity during on-peak hours. Taking a large appliance like a washing machine to run during the on-peak hours, for example, could cost more than twice as much compared to what it had cost if operated during off-peak hours. Adding together over one month these costs may mount high and result in higher-than-expected energy bills. Knowing this, you can reduce these costs by using electricity strategically. Simple changes, like running the dishwasher at night or charging an electric vehicle in the morning, can represent big dollars if one makes these simple timing adjustments. The key is to be aware of TOU rates and then plan energy usage around them.
Peak Hours vs. Off-Peak Hours
Regarding how to get the most from one's electricity use and be in a position to reduce one's energy costs, it is vital to understand when peak hours and off-peak hours of operation differ. The Ontario Energy Board made a provision for these times strictly with the view of helping consumers in Ontarioвич manage better their expenditure on electricity.
What Are Peak Hours?
This is when electricity is in maximum demand. During the summer months, they are from 11 am to 5 p.m. Most guys are at work, and all companies are operating to full capacity. This is along with air conditioning systems that tend to run on full power during these periods. Because of this high demand during the peak hours, the pressure on the electrical grid is immense, and then electricity prices go up.
Peak hours move into the morning hours from 7 a.m. to 11 a.m. and into the late afternoon from 5 p.m. to 7 p.m. during the winter months of the year when heating systems come on inside individual houses, and lights also turn on in these same time frames. This can be attributed to the demand driven by warmth and light against dwindling daylight hours and reduced temperatures.
What Are Off-Peak Hours?
They refer to those hours during which electricity is demanded the least. They happen from 7p.m. to 7 a.m., as well as during the weekends. It is at these times that most businesses are closed, and residential use has been reduced since many people go to bed. Since utilities require less electricity during off-peak hours, the utility companies make their rates lower to try and get more incentives to individual consumers to use electricity during off-peak hours. In other words, their purpose is hence to use the electricity at these times in order to take some of the load off the grid during peak hours.
Use Solar Generators to Save on Electricity Costs
While time-of-use rates and off-peak hours are where the true savings are made, another core strategy to bring down your electricity cost is through a solar generator. This innovation takes in the energy provided by the sun, offering a very sustainable and cost-effective energy solution. In Ontario, with varying rates charged for electricity that make huge differences throughout a day, the solar generators offset these costs by reducing dependence on the grid.
BLUETTI AC200L+PV200D
This is an excellent choice for any homeowner who wants to supplement their electricity supply with daylight energy. With a 2,048Wh battery capacity and 2,400W AC output, this powerful model can easily support a large number of appliances in the home. Say anything from a refrigerator down to a home entertainment setup.
This unit stands out for Supporting Power Lifting to surgences of up to 3,600W, which ensures it's able to handle the most energy-intensive devices.
The added PV200D solar panel is a 200W unit that proficiently converts sunlight into electricity, applicable to many uses at up to 23.4%. This high-performance panel is designed to be rugged and portable, earning an IP65 water resistance rating, making it perfect for outdoor use. Be it camping, hiking, or just saving on the home electricity bill, the BLUETTI AC200L + PV200D kit is a reliable and eco-friendly solution.
One of the major strengths in the BLUETTI AC200L is its multi-faceted nature. With six recharging methods that let you keep your generator on—AC, solar, car, generator, lead-acid battery, and AC + solar combination—there will never be a moment when it won't run for you as needed. The unit can recharge from 0-80% in 45 minutes with a 2,400W AC input, which brings prompt convenient power in any situation at demand.
BLUETTI AC500+B300S+PV350
This one covers the top end for those with more significant energy requirements. This setup is designed to provide a rated power output of 5,000W and surge capacity of 10,000W, enough to run whole houses in case of grid failures or off-grid living. This LiFePO₄ battery-equipped generator allows an impressive 3,500+ life cycles to 80% capacity for long-lasting reliability and performance.
The B300S battery module comes with a maximum of 3,072Wh storage, upgradeable to 18,432Wh. Thisums up pretty good savings of extra energy production off-peak and fairly brings it forth for use during the on-peak periods. This feature can be important in Ontario because you can sometimes get short-changed by TOU pricing; so when you have stored solar energy, you will be critically cutting back your reliance on the grid during those pricey times.
This bundle includes a 350W PV350 solar panel that is tailored to ensure maximum effectiveness. Having a higher conversion rate, it's able to glean more electricity from sunlight than the majority of standard panels. The PV350 is splash-proof and strong; it will easily get through any weather conditions, either at home or in some remote place.
Final Thoughts
Knowing the cheapest time to run electricity in Ontario is critical in keeping your energy costs sensible. Combining Time-of-Use rates with solar solutions like the BLUETTI systems, AC200L+PV200D and AC500+B300S+ PV350 kits, will keep you well on your way to getting the most value from your investment by avoiding peak demand times and therefore minimizing bills for electricity. While all of these solar generators can provide a sustainable alternative to traditional energy sources, some may be able to offer you an easy and reliable way to keep your home on during peak demand periods.
