Moonlight savings: Is electricity cheaper at night?

With the cost of our energy bills continuing to rise, it’s important that we try and save money whenever we can. But do energy suppliers charge more at peak times? Let’s take a look to see if electricity really is cheaper at night and if you should change your energy usage.

Is electric cheaper at night?

No. For the majority of people, the time of day you use your electricity has no impact on how much you pay.

However, most energy companies offer special tariffs (such as an EV tariff) allowing you to use electricity at a reduced rate during the night. Take a look below to see how these tariffs work and if they’re worth switching to.

How to get cheaper electricity at night

If you fancy paying a cheaper rate for your electricity at night, you will need to switch to an off-peak tariff, usually called Economy 7 or Economy 10 – also known as a differential or multi-tariff rate.

The Economy 7 tariff gets its name because you have 7 hours of cheaper electricity. And unsurprisingly, Economy 10 gives you 10 hours. The exact hours you receive your cheap rate depends on your utility company, but the majority of the time, this will be anywhere between 10 p.m. and 8 a.m.

Some companies will have a different name for the tariff. And some (like Octopus Energy) confuse matters even further and have multiple off-peak tariffs, also known as smart tariffs.

If you decide to switch to an off-peak tariff, you will need to have a compatible dual-rate meter fitted by your energy company. This measures your electricity usage at different times of the day. If you already have a later generation smart meter fitted (SMETS2), then this should be compatible. Earlier smart meters (SMETS1) will not always work.

To find out more, you can visit your electricity provider’s website to see the current tariffs they have on offer.

Why would companies make electricity cheaper at night?

Simply because of supply and demand. Think about the early evenings when people get home from school and work and turn the TV on, put the dinner in the oven and start the kettle. Everybody demands electricity at the same time during these peak periods and the energy-producing companies have to burn more fossil fuels to keep up.

If this energy use could be spaced out more evenly, it reduces the strain on the energy network.

Offering cheaper electricity rates during off-peak hours is a way for energy providers to be able to manage demand better. Of course, for most of us, that just isn’t practical.

How much cheaper is electricity at night?

If you think that switching to an off-peak tariff might benefit you, then you’re probably interested to know how much it could reduce your bill. Of course, this is an almost impossible question because everybody’s lifestyle is different. But, there are some generalisations out there to help guide you.

For washing machines, it’s estimated that it costs an average family £24 to run each year. If only used at night on an Economy 7 or Economy 10 tariff, this cost could be halved.

If you have an electric vehicle, switch to Octopus Energy’s IntelligentOctopus tariff and they claim you can save £100 if you charge it at night.

For a direct price comparison, back in April 2020, Ofgem calculated that the average cost for electricity was 10.9p per kWh (kilowatt hour) on a standard tariff. For Economy 7, off-peak electricity cost 8p per kWh, rising to 12.1p per kWh for the rest of the day.

Of course, a lot has changed since 2020. Prices have risen, energy companies have folded and tariffs seem to be quite limited. You will need to check the latest prices on offer to see if switching really would be worthwhile.

Cheap electricity? Time to get switching then…

Not quite. You see, although the cost of electricity is cheaper at night, you’ll have to pay a higher rate for your energy during the day. Opting for an off-peak tariff really depends on your lifestyle.

If you have storage heaters at home, it’s often suggested that off-peak tariffs could reduce your bills. These devices will convert the electricity to heat during the night and then release it throughout the day. Of course, this only works if the heat lasts for the whole day. If by the evening the heater needs more electricity to keep going, the more expensive day rate could cost you extra.

If you tend to be out most of the day and you’re able to run your large appliances like your washing machine or charge an electric car at night or very early morning, then an off-peak tariff may also be more economical. Or, if you work night shifts from home, it could also save you money.

Finally, for those with solar panels installed on their roof, an off-peak tariff may also help to save money. Because the solar panels will produce most of the electricity throughout the day, a cheaper rate for the night-time might be a good idea, especially during the summer months.

But for the majority of households though, having a cheaper night rate will not save you money on your electric bill and will often cost you more. Don’t forget, a lot of our electricity use comes from devices that are on permanently, such as a fridge freezer or WiFi Hub, or from items that are left on standby. It doesn’t make sense to pay a decreased rate for 7 hours of the day if it means paying more for the other 17 hours.

Further reading

If you have an electric car and want to find out more about a tariff that gives you cheaper electricity at night, check out my Intelligent Octopus review.

If you’re interested in reducing energy consumption, why not take a look at my post about energy-saving devices? Or, you can see my comparison of two of the best smart thermostats – Nest vs Hive.

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