Time-of-use rates in Florida 2026: when they save and when they cost you more

A time-of-use (TOU) rate prices each kWh by the hour you use it: expensive during the grid’s peak hours and cheap the rest of the day. In Florida, FPL offers it (rider RTR-1) and so does Duke Energy (RST-1); TECO has its own program called Energy Planner. It saves only if you can pull big loads out of the peak. Otherwise, it costs more.

What is a TOU rate and why does it exist?

The grid costs more to run when everyone uses power at once, typically summer afternoons. On a flat rate you pay the same at 3 AM and 5 PM; on TOU, the utility gives you an off-peak discount in exchange for an on-peak premium. Definition at /en/glossary/tou. Your normal rate is the “flat” one: FPL’s, for instance, averages about 12.8 ¢/kWh for 1,000 kWh in September 2026 (/en/learn/how-to-read-your-fpl-bill).

What does each utility offer?

Weekends and the major holidays (New Year’s, Memorial Day, July 4, Labor Day, Thanksgiving and Christmas) are off-peak at FPL and Duke.

FPL: RTR-1

FPL describes it in round numbers: “about 26 cents per kilowatt-hour” on-peak and “around 9 cents” off-peak, noting it is an approximation. On the rate sheet, the rider applies on top of RS-1: it adds 14.410 ¢ to base energy on-peak and subtracts 6.157 ¢ off-peak (plus a fuel adjustment of +0.226 / −0.098). It requires a one-year commitment, a new meter and about three months to activate; joining costs nothing. FPL itself says who it suits: homes over 1,000 kWh that can shift usage, especially with an EV charger. And who it does not: lower-usage homes or those “mostly at home during the day”.

Duke: RST-1

Duke’s peak is shorter: three evening hours year-round, with an extra morning peak in December, January and February. In exchange, since January 2025 it widened the discount period (formerly “super off-peak”): midnight to 6 AM most of the year. It is the best scheme in the state for charging an electric car overnight.

TECO: Energy Planner

It is not a classic TOU. TECO installs a programmable thermostat and a control for the water heater and pool pump, and shifts your equipment by price level. The critical level cannot exceed 1.5% of the hours in a year. Key restriction: it is not available to customers with solar and net metering.

When does it pay?

When you have large loads you can move and a house that does not consume in the peak:

• Electric vehicle: charging between 11 PM and 5 AM at Duke or overnight at FPL is the clearest case.
• Battery: charge it off-peak (or with solar) and discharge from 6 to 9 PM. With solar and no battery, at FPL part of the summer peak (until 9 PM) falls after the panels stop producing; the battery is what changes the result. Context at /en/learn/net-metering-florida.
• Pool pump and water heater: programmable with no loss of comfort.
• Empty house by day (everyone works out) with pre-cooling before the peak.

When does it NOT pay?

• If people are home in the afternoon and the AC works from noon to 9 PM in summer: at FPL, nearly all your usage would fall at 26 ¢.
• If you use under 1,000 kWh: the absolute savings are small and do not offset the risk of one bad month.
• If you will not program anything: the rate does not save on its own. A smart thermostat and a pool timer are the minimum.
• If you are on TECO and have or plan solar: you cannot enroll.
• If your AC is old and runs extra hours (/en/learn/old-ac-and-your-bill): fix that first, because TOU punishes exactly that usage.

Heads up: FPL’s one-year commitment exists because the utility knows many people sign up for the “9 cents” and discover the “26” in July. If you leave before the year is up, the tariff provides for billing you the difference against what you would have paid on RS-1. Do not sign for the headline; sign with your hourly kWh in hand.

How to run the numbers at home

1. Open the hourly view of your account (Energy Dashboard at FPL, “Usage” in the Duke app).
2. Take one week in July and one in January. Add up the kWh that fall inside your utility’s peak.
3. Multiply peak by the peak price and the rest by the off-peak price; compare with what you paid.
4. Subtract what you could shift (EV, pool, water heater) and repeat.
5. If the annual savings do not cover one bad vacation month with the AC on in the afternoon, stay on the flat rate.

What to check before deciding

• How many kWh of a summer week fall inside your utility’s peak.
• Whether you have or will have an EV, a battery or a pool pump on a timer.
• The real schedule of the house: who is home at 3 PM in July.
• The exit terms (FPL: one-year contract).
• If you are on TECO, whether your plan includes solar. More on each utility at /en/florida/fpl, /en/florida/duke-energy and /en/florida/teco.