Glossary
Time-of-use rate (TOU)
A time-of-use or TOU rate is an optional utility plan where the price per kWh changes by hour: higher during peak-demand hours and lower the rest of the time. It only pays off if you can move a meaningful share of your consumption out of the expensive windows.
What a TOU rate is
On the standard rate you pay the same price for every kWh at any hour. On a time-of-use rate, the utility defines peak windows (usually late afternoon and early evening, when everyone gets home and turns on the AC) at a higher price, and off-peak windows at a lower price. Some Florida utilities offer it as an option; it is not mandatory for residential customers.
The plan bets on you changing habits: laundry at night, charging the electric car before dawn, heating water off-peak.
Why it matters in Florida
The problem is air conditioning. In Florida, peak hours line up exactly with when the house needs cooling most, and turning the AC off at 5 p.m. in August is not a real option for most families. If AC dominates your usage and you cannot shift it, a TOU rate can cost you more than the flat rate.
What changes the math is a battery: it charges off-peak (or from solar at midday) and powers the house during the expensive hours. But the battery has its own cost, and you need to run the numbers for your specific home before assuming it pays off.
Common mistake
Switching to TOU because “off-peak kWh are cheaper” without checking when you actually consume. Your utility lets you see hourly usage in your online account. Look at one summer week before deciding. In time-of-use rates in Florida we explain how to make that comparison.
Full guide: Time-of-use rates in Florida 2026: when they save and when they cost you more →
Updated