What is off-peak electricity and how can it help save money?

Off-peak electricity refers to electricity used during times when demand is lower, typically during the night or early morning hours. During these periods, electricity prices are lower, which can help consumers save money on their energy bills.

In many cases, electricity providers offer off-peak tariffs as part of their pricing plans, making it a great option for households or businesses that can shift some of their energy usage to these cheaper times.

Off-peak rates can significantly reduce your overall electricity costs if you adjust your habits and schedule energy-intensive activities, such as running washing machines, dishwashers, or heating, to off-peak hours.

This article will explore how off-peak electricity tariffs work, who should consider them, the best off-peak plans for 2025, and tips on managing energy consumption to make the most of these savings.

How off-peak tariffs work and who should consider them

Off-peak electricity tariffs typically feature cheaper rates during specific hours of the day when overall demand for electricity is low. These hours are usually during the night and early morning, when most people are not using electricity at home.

In return for this lower price, consumers must commit to using electricity during the off-peak times.

The tariff structure is often broken down into:

• Peak hours: The times when electricity demand is highest and prices are higher (e.g., evenings when everyone is home).
• Off-peak hours: The periods when demand is lowest, and electricity prices are cheaper (e.g., late night or early morning).
• Shoulder hours: These are the times between peak and off-peak, usually around midday or early evening, when demand is moderate.

Off-peak tariffs are ideal for households or businesses that have flexibility when they use electricity. This includes:

• Shift workers: If you work late-night shifts or irregular hours, you can take advantage of off-peak tariffs while you’re awake and active.
• Large households: Families with many people who can stagger energy use during the day may benefit by shifting high-consumption activities to off-peak hours.
• People with electric vehicles: Those who charge electric cars overnight can make substantial savings by charging during off-peak hours.
• Eco-conscious consumers: If you want to reduce your environmental footprint, using off-peak electricity can help you consume power when the grid is less burdened, which can reduce the need for fossil fuel-based generation.

Before switching to an off-peak tariff, it’s important to assess your usage patterns to ensure the change will work for you. The best way to check that? Call the Compare Energy team to discuss off-peak energy usage!

Best off-peak electricity plans in 2025

As of 2025, several electricity providers in the UK and Australia are offering competitive off-peak tariffs. These plans provide consumers with a chance to cut their electricity bills significantly by using power during cheaper times.

Some of the best off-peak electricity plans in 2025 include:

AGL Energy

AGL offers flexible off-peak tariffs that allow you to enjoy lower prices during off-peak periods, with an emphasis on renewable energy. Their options include time-of-use tariffs that offer significant savings for those who can shift energy usage. AGL also offers bundled services, where you can combine electricity with gas or internet for additional discounts.

Alinta Energy

Alinta Energy's off-peak plans offer low rates for off-peak usage and the option to choose renewable energy sources. Their "Time of Use" plans are ideal for consumers who have the ability to manage when they use energy-intensive devices. Customers can enjoy significant savings by using energy during off-peak hours.

Red Energy

Red Energy provides off-peak pricing structures that offer significant savings during off-peak periods. Their plans are flexible, and they also focus on renewable energy options for environmentally conscious consumers. Red Energy is known for its good customer service and simplicity, making it a solid option for those looking for an easy switch.

EnergyAustralia

EnergyAustralia offers some of the most competitive off-peak rates in the market. Their "Smart Energy Plans" come with off-peak options that can help reduce electricity costs by shifting usage to cheaper times. They also offer solar integration with some of their plans, making it a great choice for customers looking to maximise their energy savings.

Simply Energy

Simply Energy’s off-peak electricity plans offer competitive rates and straightforward pricing. They provide flexibility for households looking to save money by using energy at night, making it one of the best choices for those with variable energy needs.

When choosing an off-peak plan, be sure to consider the specific off-peak hours, the cost of the electricity during peak times, and any additional fees that might apply to ensure you get the best deal.

How to manage your energy consumption to take advantage of off-peak rates

To make the most of off-peak electricity rates, you’ll need to adjust your energy consumption habits. Here are some practical tips to help you shift your usage and maximise savings:

Schedule appliances for off-peak hours

The most effective way to benefit from off-peak tariffs is to run high-consumption appliances, such as washing machines, dishwashers, dryers, and electric ovens, during off-peak times. Most modern appliances have delay timers, which allow you to schedule these tasks to run during the night or early morning.

Charge electric vehicles overnight

If you own an electric vehicle, charging it overnight during off-peak hours can lead to significant savings. Many providers offer additional savings on electric vehicle charging, so be sure to check for any special offers.

Use smart home technology

Smart meters and home energy management systems can help you track your usage patterns and optimise your consumption. These systems allow you to monitor your energy use in real-time and can even automate certain functions, like adjusting your thermostat or switching on appliances, to run at off-peak times.

Switch to energy-efficient appliances

While shifting your energy use to off-peak times is effective, using energy-efficient appliances can further reduce your overall consumption. Consider replacing old appliances with more efficient models that consume less energy, even during peak hours.

Monitor your usage regularly

Keep an eye on your energy usage through your provider’s app or online portal. Many providers offer detailed usage data, so you can adjust your habits accordingly and continue to benefit from the best off-peak rates.

Comparing peak vs off-peak electricity plans and savings potential

When choosing between peak and off-peak electricity plans, it’s essential to understand the savings potential based on your lifestyle and energy consumption habits.

• Peak plans: These plans charge a single rate for electricity use, regardless of the time of day. While convenient, they can be more expensive, particularly if you use energy during high-demand hours (e.g., evenings).
• Off-peak plans: Off-peak plans charge different rates depending on the time of day. While the rates during peak hours can be higher, the savings during off-peak times can be substantial if you can shift your energy-intensive activities to the cheaper periods.

For example, a typical off-peak electricity plan may offer a 30% reduction in the cost of electricity during off-peak hours, compared to a standard rate plan. For a household with high evening energy use, this can result in significant savings over the course of a year.

To calculate the potential savings, it’s important to:

• Estimate how much electricity you use during peak hours and how much you can shift to off-peak times.
• Compare the rates for both peak and off-peak periods, including any additional fees or charges.
• Factor in the potential cost savings from using energy-efficient appliances and making the most of off-peak rates.

Speak to Compare Energy today!

Off-peak electricity tariffs offer a great way to save money on your energy bills if you can adjust your consumption to off-peak hours. By switching to the best off-peak plan in 2025 and managing your energy use wisely, you can significantly reduce your electricity costs while still enjoying the same comfort and convenience at home.

If you need help finding the best off-peak electricity plan or want to compare options available to you, contact the team at Compare Energy on 1300 790 106. Our experts can guide you through the process and help you start saving today!