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Peak electricity is based on demand. When more people are using grid power, the demand is the highest, and so are the rates. On the other hand, when demand is low, rates are lower.
In this blog, we’ll clearly explain these terms, time-of-use rates, and the impact of peak hours. Then, we will examine several ways that you can take advantage of this new knowledge to save big on your next electricity bill.
What Are Peak Hours and Off-Peak Hours?
Peak hours are the hours when electricity demand is the highest. In South Africa, this is from 6 a.m. to 9 a.m. and again between 5 p.m. and 9 p.m. In the winter, from June to August, peak hours change due to additional evening demand when people turn their electric heaters on.
Off-peak hours are when electricity demand is the lowest. It’s during the night, usually between 10 p.m. and 6 a.m. the next morning, although the hours can vary with the day of the week and the season.
Time-of-Use Rates: Understanding Electricity Pricing
Time-of-use rates charge users more if they use power during peak hours, less during “standard hours” between peak and off-peak, and the least during off-peak hours like the middle of the night.
What Is the Impact of Peak Hours?
You’ll pay the highest rates that day if you use electricity during peak hours. If you switch to a time-of-use rate but don’t alter your energy usage patterns, you might pay more than you do now.
However, you could save significant money if you alter your energy usage patterns and use more power late at night to run appliances or recharge batteries. Therefore, the impact of peak hours depends on when you use the most power.
How Can I Mitigate the Effects of Peak Hours?
You can do a few things to mitigate the effect of high tariffs at peak times.
First, it’s crucial to understand how much energy your home uses. If you have a lot of old appliances that are not energy efficient or have a lot of people in your home, you will use more power than other households.
Calculate your kWh usage by adding up all those appliances and how often you run them, and you will have a good idea of your energy budget. Compare your findings to your bill and look for additional power drains you were unaware of. Then, examine how to reduce your overall consumption and save money using less power.
Then, consider other tips to save money on electricity, such as installing energy-efficient appliances, switching to LED lighting, taking short showers, and better insulating your home, doors, and windows. These will also help further reduce your overall consumption.
Next, change your usage patterns. For instance, run your appliances after 10 p.m. to take advantage of the cheapest rates instead of right after you get home from work. Smart appliances simplify this step, so you don’t have to get up at night to start your appliances.
Also, installing a geyser timer will allow you to heat your water during cheaper tariffs. Then, recharging your batteries, electronic devices, and electric vehicles (EVs) at night can also save a lot of money.
Finally, alternative energy sources like solar are the best way to avoid peak times. When you invest in an EcoFlow Solar Generator, you can produce power anytime the sun is shining. EcoFlow Portable Power Stations have a battery and a built-in inverter so that you can store the energy you generate during the day and use it during the evening when electricity is the most expensive.
Then, rely on grid power during the cheapest tariff rates and utilise an EcoFlow DELTA Pro when it’s costly.
Another option is to go off-grid altogether and never pay Eskom again. For instance, the EcoFlow DELTA Series Solar Generators have various capacities with expandable batteries, such as the EcoFlow DELTA 2 Max + 220W Solar Panel. This way, even large, power-hungry homes can gain energy independence and get off the grid. After the solar payback period, the savings on your utility bills will pay for the installation cost, and your energy will be free for about 20 years.
Frequently Asked Questions
Off-peak power is when power demand is the lowest. The times can vary depending on the day of the week and the season in South Africa. However, off-peak is usually between about about 10 p.m. at night and 6 a.m. the next morning.
A time-of-use tariff is where users’ rates vary with the time and day of the week. Tariffs are highest when demand is the highest, usually between 6 and 9 a.m. and again from 5 to 9 p.m. The cheapest rates are usually between 10 p.m. and 6 a.m. the following morning.
Final Thoughts
Understanding how peak electricity works is critical for anyone on a time-of-use tariff. Rates are highest when demand is highest, like right after work, and demand and rates are lowest during the night when fewer people are using power.
By altering your energy use patterns, you can save significant money. Another good way to save even more money is to use an EcoFlow Solar Generator. Then, you can use the power you generate during the day in the evening when rates are the highest. You can even purchase a large enough system and go off-grid altogether.