Time of Use tariffs for smart homes

Time of Use (ToU) tariffs can significantly reduce your electricity bills by charging different rates at various times of the day. These tariffs particularly benefit homeowners in the UK who can shift their energy use to off-peak hours, especially those with smart home technology like electric vehicles (EVs) and home batteries.

Ready to make your smart home even smarter with a Time of Use tariff? Fuse Energy helps you take control of your energy consumption. Click here to see how easy it is to switch.

What is a Time of Use tariff?

A Time of Use tariff is an energy pricing structure where the cost of electricity varies depending on the time of day, week, or even season. Instead of a flat rate, you pay less when demand on the grid is low and more during peak periods. This encourages more efficient energy consumption and helps balance the National Grid.

Understanding peak and off-peak rates

Dual-rate variable tariffs typically feature distinct peak and off-peak periods, with off-peak rates often significantly lower than peak rates. For example, under the July to September 2026 price cap, a typical variable electricity unit rate is 26.11p per kWh, with a daily standing charge of 57.19p. However, off-peak rates on a ToU tariff can be much lower, sometimes less than half of the peak rate. These tariffs are designed to encourage consumers to shift their energy consumption to periods when demand on the grid is lower and renewable generation is often higher.

The role of smart meters

While smart meters are commonly associated with Time of Use tariffs, they are not always strictly required for all dual-rate or off-peak tariffs. Eligibility often depends on your meter's configuration, known as its Standard Settlement Configuration (SSC). Some older, manual dual-rate meters can also be eligible for these tariffs. However, a smart meter provides accurate, real-time data, which is invaluable for optimising your usage and ensuring correct billing across different time bands. If you have a manual meter, your energy supplier can usually install a smart meter for free.

How Time of Use tariffs benefit smart homes

Smart homes are perfectly positioned to take advantage of Time of Use tariffs. By automating energy-intensive tasks, you can ensure they happen when electricity is cheapest, leading to substantial savings.

Optimising electric vehicle charging

Electric vehicles (EVs) are one of the biggest energy consumers in a modern home. With a Time of Use tariff, you can schedule your EV to charge during off-peak hours, typically overnight, when electricity rates are at their lowest. This significantly reduces the cost of running your EV compared to charging at peak times. Many smart EV chargers can be programmed to automatically start charging when off-peak rates begin.

Leveraging home batteries for savings

Home batteries, often paired with solar panels, become even more valuable with a Time of Use tariff. You can charge your battery during cheap, off-peak periods or with surplus solar generation, then discharge that stored energy during expensive peak times. This allows you to power your home with your own cheap electricity, reducing reliance on the grid when prices are high.

Smart appliance scheduling

Beyond EVs and batteries, many other smart home appliances can be scheduled to run during off-peak hours. Dishwashers, washing machines, and tumble dryers with smart features can be set to start automatically when electricity rates drop. Even smart thermostats can be programmed to pre-heat or pre-cool your home during cheaper periods, then maintain a comfortable temperature with minimal energy use during peak times.

Making the most of your tariff: practical tips

Switching to a Time of Use tariff is only the first step; actively managing your energy consumption is key to unlocking its full potential.

Shifting high-consumption activities

Identify the appliances and activities in your home that use the most electricity. These are the prime candidates for shifting to off-peak times. Think about when you typically run your washing machine, dishwasher, or charge your devices. Even small changes, like running your tumble dryer late at night or early in the morning, can add up to significant savings over time.

Monitoring your energy usage

Regularly monitoring your energy usage is crucial. Your smart meter data, often accessible through an energy supplier's app, can show you exactly when you're consuming the most electricity and how much it's costing you. This transparency helps you fine-tune your habits and identify further opportunities to shift usage. The average UK home uses around 2,500 kWh of electricity per year.

Integrating smart technology

Ensure your smart home devices are properly integrated and configured to work with your Time of Use tariff. This might involve connecting your EV charger to your energy supplier's app or setting up schedules for your smart appliances. Automating these processes means you don't have to constantly think about energy prices, making it easier to stick to your new, more efficient habits.

Choosing the right Time of Use tariff for you

Not all Time of Use tariffs are created equal, and the best one for you will depend on your specific circumstances.

Assessing your lifestyle and habits

Before switching, consider your household's typical energy consumption patterns. Do you have an EV? Do you work from home, or are you out during the day? Can you realistically shift a significant portion of your energy use to off-peak hours? If your lifestyle makes it difficult to avoid peak-time consumption, a Time of Use tariff might not be the most cost-effective option.

Comparing dual-rate variable tariffs

Explore the dual-rate variable tariffs available from different energy suppliers. Look closely at the peak and off-peak rates, the duration of each period, and any daily standing charges. Compare these against your estimated usage patterns to see which tariff offers the greatest potential savings for your household. Ofgem regulates the energy market in Great Britain, including setting the energy price cap which influences variable tariff rates. Variable tariff rates are subject to change quarterly on 1 January, 1 April, 1 July, and 1 October, in line with the Ofgem Price Cap.

Understanding contract terms and exit fees

Always read the contract terms carefully. While variable tariffs typically have no exit fees, fixed-rate tariffs often do. Understand the length of the contract and any penalties for leaving early. The Smart Export Guarantee (SEG) ensures that licensed energy suppliers pay customers for surplus electricity they export to the grid, which can complement savings from Time of Use tariffs for homes with solar panels.

Fuse: your partner for smart energy optimisation

Fuse aims to build a future with power to play with, where energy is so abundant it stops being a thing you think about. We believe in empowering you to take control of your energy consumption, transforming it from a cost into an opportunity for optimisation and savings.

Fuse offers a dual-rate variable tariff designed to unlock the full capabilities of EVs, home batteries, and smart appliances for significant savings and greater energy independence. Our tariff is built to integrate seamlessly with your smart home setup, allowing you to automate your energy use and maximise your savings without constant manual adjustments.

Choosing a Fuse dual-rate variable tariff allows you to actively manage your energy usage with smart technology to your financial advantage. Our all-in-one app provides transparency and control, helping you monitor your usage and optimise smart devices to align with Time of Use tariff periods. We also support the integration of smart home technology like EV chargers and batteries, which are key to maximising the benefits of Time of Use tariffs.

Fuse enables customers to leverage Time of Use tariffs to gain control over their energy consumption, transforming it from a cost to an opportunity for optimisation and savings. Click here to switch to Fuse Energy today and start making your energy work for you. You can also find out more about our mission to make energy abundant here.