Strategic Use of Appliances to Capitalize on Lower Electricity Rates

The effective management of household energy consumption is crucial not only for reducing utility bills but also for contributing to environmental sustainability. By strategically using different appliances during periods of lower electricity rates, homeowners can significantly lower their energy costs. This article outlines practical strategies that can be employed to optimize energy usage according to varying electricity rates.

Understanding Time-of-Use Rates

Many electricity providers offer time-of-use (TOU) electricity rates, which vary based on the time of day. These rates reflect the electric supply's cost, which typically fluctuates throughout the day, being higher during peak demand times and lower during off-peak hours. Effective planning and usage can result in substantial savings.

Optimizing Major Appliances

Consider the following appliances and their strategic use to take advantage of lower electricity rates: Water Heater

My water heater runs on propane, but I have an electric one as a backup. Utilizing an electric water heater’s thermostat, I set it to shut off at 7 am and turn on at 9 pm. This ensures that the water is heated during the lower rates, providing hot water when needed without incurring peak rates.

Electric Clothes Dryer

I strategically use my clothes dryer during the late evening or the weekend, when rates are significantly lower. Vented dryers can also be set to vent into the home, providing some additional warmth and humidity, which is particularly useful during the colder months.

Stove and Oven

My stove consumes around 2 kW and requires only 10 to 15 minutes of use. Therefore, using it whenever needed is feasible. However, my oven, which is 3800 watts and consumes around 2.5 to 3 kW per hour, should be used during off-peak hours. Peak hours are from 5 pm to 9 pm on weekdays, so avoiding it during these times can save significantly on electricity costs.

Sustainable Heating and Cooling

Effective management of heating and cooling systems can further reduce energy consumption and costs. Here are some strategies: Heat Pump

My heat pump operates at 4 kW, and I strategically avoid using it during peak daytime hours. I often program it to run a bit before the 7 am cutoff to ensure the home is warm enough when I wake up. During off-peak hours, I let the home cool to a comfortable level. For instance, in the summer, I cool the home to 70°F at 4:50 pm and avoid running the heat pump until 9 pm, when the cost drops. The system cools the house by 5°F per hour, providing cooling without incurring peak rates.

Electric Vehicles and Smart Charging

For owners of plug-in hybrid or electric vehicles, strategic charging can ensure optimal use of lower rates. Even though electricity rates can double during peak hours, planning is key to avoiding these higher costs. My 2017 Ford C-Max, a plug-in hybrid, can be charged overnight when rates are lower, and during the day when necessary, I can ensure I pay the lower rate by charging it during off-peak hours. Given that my car’s charging capacity is only 7 kW, which is relatively low, the increase in cost is minimal, only 0.56 on overnight rates and 1 on the higher day rate.

Conclusion

By carefully planning the usage of major household appliances based on time-of-use electricity rates, homeowners can achieve significant savings on their energy bills. Implementing simple strategies can make a substantial difference, leading to a more financially and environmentally responsible use of energy.