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What does peak and off-peak electricity actually mean?

When are peak and off-peak hours?

What’s the cheapest time of day to use electricity?

What types of electricity plans offer off-peak tariffs?

How do I get a time-of-use electricity plan with off-peak tariffs?

What are the benefits of switching to a time-of-use tariff?

How can I get the most from an off-peak electricity tariff?

Lighten up your electricity bill (and your life)

Long story short

Peak and off-peak hours affect what you pay for electricity

Peak periods happen when electricity demand is highest and have higher costs, while off-peak electricity rates are lower.

Off-peak times vary depending on where you live

Each state, distributor and energy provider can have different off-peak periods, so it’s worth checking the times that apply to your plan.

Using more power off peak can help lower your bills

Switching to a time-of-use tariff and shifting energy-heavy tasks to cheaper periods can reduce energy costs and ease pressure on the grid.

What does peak and off-peak electricity actually mean?

Peak and off-peak hours are different electricity cost periods based on the demand to the main grid. Peak times are when demand is at its highest, usually early evenings, while off-peak hours, usually the middle of the day or night, are times when the grid has much less strain. To encourage people to shift their main usage hours away from peak periods, those electricity costs are more expensive than off-peak.

A time-of-use (ToU) tariff is an electricity plan structure designed by energy retailers that charge you different amounts during off-peak and peak hours. So, if you can tweak your habits – like throwing the washing on before bed or setting the dishwasher as you leave for work – you’re not just taking some weight off the grid, you could be getting lower electricity prices and better energy efficiency too.

This doesn’t mean you need to tiptoe around your appliances during peak hours. ToU tariffs are designed to help you focus on being more mindful of when to use your energy-hungry appliances, like washing machines and electric vehicle charging.

When are peak and off-peak hours?        

Peak electricity hours start in the late afternoon and early evening and finish in the night when demand is highest, while off-peak hours are overnight and outside periods of high demand. Some providers, like EvoEnergy and SA Power Networks, also have peak periods in the morning. The exact peak and off-peak hours depend on your state, energy provider and plan.

Many electricity distributors also have a third period, known by a few different names. Solar Sponge, Solar Soak and Sun Soaker offer cheaper electricity in the middle of the day, when solar energy generation is highest. Shoulder times are periods in between peak and off-peak periods that cost a little less than high demand periods, but not as low as off-peak times.

Here are the current pricing periods across some Australian states. Remember, for the most accurate info, it’s best to check the details with your electricity provider, distributor or directly on your power bill details.

Notes: These figures reflect electricity pricing periods for distributors in Victoria. Actual times may depend on location and provider and may change slightly. Data retrieved July 2026.

Notes: These figures reflect electricity pricing periods for distributors in New South Wales. Actual times may depend on location and provider and may change slightly. Data retrieved July 2026.

Note: These figures reflect pricing periods for the distributor SA Power Networks in South Australia. Actual times may depend on location and provider and may change slightly. Data retrieved July 2026.

Note: These figures reflect pricing periods for the distributors operating across South East Queensland. Actual times may depend on location and provider and may change slightly. Data retrieved July 2026.

Note: These figures reflect pricing periods for the distributor EvoEnergy in the Australian Capital Territory. Actual times may depend on location and provider and may change slightly. Data retrieved July 2026.

Helpful tip

Got solar panels on your roof? It could be worth asking your electricity network provider whether a solar time-of-use tariff is available. These plans let you use your own self-generated solar power during peak times, while still having peak and off-peak periods outside of these self-powered hours. This means you rely less on the main grid and can still tap into cheaper off-peak rates when needed. Check with your provider to see if this option is available.

Julia Paszka

General Manager – Utilities & Credit Cards

What’s the cheapest time of day to use electricity?

If you have a time-of-use (ToU) tariff, the cheapest time to use your electricity is either during off-peak hours or, for states that offer the new Solar Sharer Offer or Solar Soak initiative, during that period. Solar Sharer runs for around 3 hours in the late morning to early afternoon, while Solar Soak runs for 5 hours. Off-peak periods usually run outside peak times; in Queensland, this is from 11 am to 4 pm, in South Australia it’s from 12 am to 6 am, and in Victoria, it’s from 9 pm to 11 am. The exact time that is cheapest will depend on your provider and location.

Looking at the ToU energy rates for homes in Victoria, as of July 2026-27, peak charges per kilowatt hour (kWh) can be more than double off-peak charges in some distributor areas. Off-peak periods average at 22 cents per kWh, while peak periods average at 41 cents per kWh and solar soak periods average at 19 cents per kWh. The solar soak period is a new initiative in Victoria that introduces even lower charges to encourage energy usage during high solar generation periods.

Remember, you might pay less on a retail or market offer, but these figures give you a broad idea of how a ToU tariff could work in your home.

Note: These figures reflect time-of-use costs per kilowatt hour for residents based on the Victorian Default Offer 2026–27. Data has been rounded where appropriate, with all figures including GST. Internal iSelect calculations have been applied to this data. Actual costs may vary by location, energy plan and providers. Data retrieved July 2026.

What types of electricity plans offer off-peak tariffs?

Time-of-use (ToU) tariffs give you access to off-peak pricing periods. To get onto a ToU tariff, you’ll need a smart meter. A smart meter records your data every 30 minutes so your provider can tell exactly how much energy you’re using and where it falls within your different demand pricing periods.

The type of tariff on your electricity plan sets the rules for how you’re charged, and whether off-peak rates are available to you depends on your tariff. A single rate tariff plan, which most homes are on, will only have one flat rate no matter what time you use your energy. But if you’re on a 2-rate plan, you’ll be charged by peak and off-peak rates. There are also some ToU tariffs which come with shoulder periods, sometimes called solar soak/sponge periods (which fall between peak and off-peak). If you have a dedicated circuit or controlled load tariff for things like your hot water system, you’ll also be able to use off-peak timings.

How do I get a time-of-use electricity plan with off-peak tariffs?

To get onto a time-of-use (ToU) tariff, you’ll need to check your bill to make sure you aren’t on one already, then check that your provider has a ToU plan that’s available to you before switching over. You’ll also need to make sure you have a smart meter to be eligible for a ToU tariff and make sure that it’s configured correctly for peak and off-peak pricing.

If you haven’t got a smart meter, you’ll need to consider the meter costs associated with swapping over to a ToU tariff. Once you’ve been swapped over, make sure to double-check your Energy Plan Documents (in Vic/WA) or Basic Plan Information Documents (ACT, NSW, SA and Qld). These handy forms will spell out your exact peak and off-peak hours, so you know when to charge up and when to chill.

What are the benefits of switching to a time-of-use tariff?

Switching to a time-of-use tariff and shifting your usage to off-peak periods means lower electricity bills and more control over your energy usage. By better understanding your electricity usage patterns, you can better understand your own bills and see how shifting over to off-peak can make a positive difference.

But switching over to a time-of-use tariff doesn’t just mean saving money or interesting insights. You’re also helping to ease pressure off the main grid and opting for a more environmentally friendly energy option. That’s a win for your wallet and the planet.

How can I get the most from an off-peak electricity tariff?

When switching over to off-peak pricing, you should check that you have the right meter, make sure it’s available in your area, then shift big energy appliances over to off-peak periods and use an app to monitor your energy consumption. These tips will help ensure that you get the most from your off-peak pricing structure tariff.

Check your meter type

Only digital or smart meters can send your provider your usage information daily. Without one, you can’t track your peak and off-peak usage.

Availability matters

Time-of-use tariffs aren’t available everywhere, so check whether they’re an option in your area first.

Use an app

If you’ve got a smart meter, you can download your electricity retailer’s mobile app to monitor your energy usage patterns in real time. This can be a great way to see how much you’re using in peak times.

Switch big appliances to a controlled-load tariff

For energy-hungry appliances like underfloor heating, air conditioners or pool pumps, a controlled-load tariff can save you some money on your bills. It works like an off-peak tariff, but with separate metering to ensure those devices only run during cheaper hours. So, there’s no need to stress about your bill if you like a piping hot shower every night.

Lighten up your electricity bill (and your life)

Feeling the pinch from rising costs? Switching to an off-peak electricity plan could help you save without sacrificing your comfort. Compare a range of electricity plans and brands with iSelect and find one that matches your energy usage habits. Call our team of energy comparison experts on 1800 664 532 or start comparing online. It’s quick and simple and might just be the easiest way to take back control of your bills.