Key Takeaways
- Peak hours are the most expensive evening tariff slot (17:00–22:00).
- The unit price is highest because grid demand peaks.
- Load shifting, demand limiting and solar reduce peak cost.
- Contract-power overrun usually happens at peak and triggers an extra penalty.
- Peak consumption cannot be optimized without monitoring.
The size of your electricity bill depends not only on how much you consume, but also on when you consume it. The most expensive slot of the day is peak hours. This article explains what peak hours are, why they are expensive and how to cut your peak-hour cost.
What Are Peak Hours? Peak hours are the time slot when electricity demand and the tariff are highest. Under a three-period tariff, the day is split into three: day (06:00–17:00), **peak (17:00–22:00)** and night (22:00–06:00). The unit price is highest in the peak slot and lowest at night. The same kWh costs very differently depending on which slot it is drawn in.
Why Is Electricity Expensive During Peak Hours? Peak hours are the evening, when grid demand peaks — industry is still running while residential consumption kicks in. As demand rises, expensive generation plants come online and grid load increases. The regulator applies the highest tariff to the peak slot to discourage that load. Contract-power overruns also usually happen at peak, pushing the cost even higher.
How Do You Reduce Peak Consumption? Several practical methods lower the peak cost: - **Load shifting:** Move flexible loads (pumps, cooling pre-run, EV charging, heating) into the night slot. - **Demand management:** Automatically shed or delay loads that would exceed the threshold at peak. - **Solar and storage:** Store solar energy generated during the day and use it at peak. - **Monitoring:** No optimization is possible without seeing which device draws what at peak.
Peak Hours and Contract-Power Overrun If all loads are on at the same time during peak hours, the **contract power (demand)** is exceeded and a demand penalty is triggered. This is an extra cost on top of the peak tariff. Load shifting reduces not only the peak tariff but also the demand penalty.
Peak Management with SolarTools SolarTools splits your consumption by time slot (day/peak/night), shows your peak consumption and your approach to the contract power in real time, and warns before the threshold is exceeded. So you decide which load to shift and when based on data, not guesswork. Try it free for 14 days to see your peak cost.
Frequently Asked Questions
When are peak hours?
Under a three-period tariff, the peak slot is typically 17:00–22:00. Day is 06:00–17:00 and night is 22:00–06:00. The peak unit price is highest and night is lowest.
How do you reduce peak consumption?
By shifting flexible loads to the night slot (load shifting), automatically shedding loads that exceed the threshold at peak (demand management) and storing daytime solar for use at peak. First, consumption must be monitored by time slot.
How are peak hours related to the demand penalty?
If all loads are on at once during peak hours, the contract power (demand) is exceeded and a demand penalty is triggered. This is a separate cost on top of the peak tariff; load shifting reduces both.
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