- Peak electricity hours are times during the day when power demand is high, and users pay a higher rate per kilowatt-hour for the electricity they use. Location, season, electrical company, and other variables can affect these hours.
- This method is used by utility companies and retail electric suppliers to mitigate the negative consequences of increased electricity demand on the grid. Their purpose is to safeguard the power grid and avoid situations where there is insufficient electricity to meet everyone's needs.
- Off-peak electricity hours are when electricity demand is low, resulting in reduced electricity prices for users. Because individuals use less energy overall, utilities and electric firms don't have to pay as much to create electricity during these times.
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