Tesla Powerwall 3 Rebate Now Available - Combine with Federal Subsidy Today
Tesla Powerwall 3 Rebate Now Available - Combine with Federal Subsidy Today
Posted 7 Feb
Let's say you just received your electricity bill, and after taking a look at the details, you see your usage categorised into 3 sections; peak, shoulder, and off-peak periods which directly effects pricing.
For households wanting to reduce electricity bills and be smarter in the way they consume electricity, knowing the difference between peak hour electricity, off-peak, and shoulder electricity can mean the difference between expensive and affordable energy for your household in Australia.
Let's break down tariffs, peak hours, and how retailers like Energy Australia manage time and usage.
Peak electricity times are generally from 2-8pm in Summer, and 5-9pm in Winter.
Peak electricity times refer to the high-demand periods of energy when most households consume it which reflects the price.
Shoulder electricity periods are usually 7am-2pm & 8-10pm in Summer, and 7am-5pm & 9-10pm in Winter.
Shoulder electricity times refer to the time between on and off-peak demand periods, which are priced in between on and off peak energy.
Off-peak electricity times are typically from 10-pm-7am.
Off-peak electricity time periods are when energy is at its low demand and most households are either self-producing with solar, or are not consuming very much. This is also reflected by the cheap prices.
When you arrive home from work on a typical Australian summers’ day (let’s say 5pm), you start to use power in the middle of a peak period where electricity will be most expensive to use.
Updated 19/1/2026
Retailers like Energy Australia offer time-of-use tariffs/plans that enable variable energy prices which can benefit or sting you based on your consumption habits.
For example, Energy Australia's off-peak prices are 29.61c/kWh, shoulder prices are 37.33c/kWh, and peak periods come in at 70.65c/kWh. Energy Australia winter rates go from 1 June - 31 August, and their summer rates from 1 November to 31 March. (Results based on the postcode 2322. Prices may vary.)
This means that if you ran the same electrical load at both 11pm, and 5pm, the 5pm usage would cost you more than double for the exact same amount of electricity consumed. This is why it's important to use your higher-consuming appliances during off-peak or shoulder to really help save on your energy bill.
An electricity tariff refers to a pricing structure that your energy retailer uses to bill you for your electricity consumption. A tariff is another way for saying what 'plan' you're on.
Every property in Australia will have unique lifestyles and energy consumption habits which will vary in tariff requirements. Finding the right electricity tariff can depend on a few factors. Below are the main 4 tariffs available throughout NSW:
Time-of-use tariff applies variable pricing at different times of the day, based on division between peak, shoulder, and off-peak periods.
This suits people who: can easily manage their usage habits, are out mostly during weekday evenings and at home during the day and can use appliances on the weekends. You will also need to install a smart meter/time-of-use meter.
On a single-rate tariff, there are no on and off-peak electricity periods. This means you pay a flat-rate price at all-times of the day.
This tariff is the perfect for those who are home a lot during weekday evenings, and for people wanting to use appliances during peak periods.
On top of regular consumption and supply fees, Demand tariffs are based on the consumption intensity of your property at any point in time. Each energy retailer will have their own method of calculation like, your single highest demand period, your overall average, and different demand seasons.
This tariff has been made to incentivise lower energy consumption in peak periods – the less you use in these periods, the cheaper your bill is.
A controlled-load tariff refers to when an appliance is charged separately at its own stand-alone rate, and often has its own electricity meter. Every home will have at least one energy-hungry appliance, whether it be hot water heating, or a pool pump, or even floor heating to be used overnight or in off-peak periods.
A time-of-use electricity tariff is designed to charge different rates depending on the time of day. Peak energy hours are charged the most, shoulder is charged at a medium rate, and off-peak is when electricity is cheapest.
Who are time-of-use tariffs for? Most households run on a time-of-use energy tariff which can be flexible for homes that run appliances overnight, charge electric vehicles, or operate high-consuming appliances like pool pumps or hot water systems. (Did you know that most hot water systems are on a timer that take advantage of off-peak electricity overnight?)
This kind of electricity plan is suited to those who have flexibility in when they use electricity, incentivising off-peak consumption. For residents who consume most of their energy during peak periods, it can become very expensive to run basic appliances for cooking, cooling, or entertainment.
Since 2024, Ausgrid combined both shoulder periods with off-peak periods, making it easier to differentiate on vs. off-peak prices for consumers. Based on AGL's standing offer, peak period prices come in at around $0.65c/kWh, and off-peak electricity prices around $0.30c/kWh.
Unlike a time-of-use tariff which is variable depending on the hour of the day, a flat rate tariff remains consistent throughout the day and night. There are no peak and off-peak periods which means that your electricity costs remain consistent whether the electricity is during a peak or an off-peak period. Depending on the retailer, flat rate electricity tariff prices range from 30-40c/kWh.
Who are single rate tariffs suited for? A single rate tariff is suited for homes that use most of their electricity during peak periods and for those who prefer consistent and predictable electricity bills. Flat rate plans are a great choice for workers who return home at dinner time and consume their energy right in the middle of peak electricity hours.
Is a Flat rate or Time-of-use tariff better? Whilst flat rate tariffs are simple, they are less cost-effective compared to taking advantage of off-peak electricity pricing. If your household can take advantage of off-peak electricity prices, a flat rate tariff may prevent savings.
Demand tariffs, also known as demand charges on electricity bills, incentivise customers to use less energy in peak periods.
How are demand charges calculated? Demand charges look at your maximum electricity consumption during peak hours. Measuring in 15 or 30-minute block intervals each day during a month, the block with the highest consumption will be your highest energy consumption.
Rather than solely focusing on the amount of energy being used, a demand tariff also takes into account the amount of power being drawn. Running multiple high-consuming appliances like air-conditioning, pool pumps, and ovens at the same time can cause spikes which increase the demand charge portion of your electricity bill.
A controlled load is a tariff for specific stand-alone appliances like electric hot water heaters, pool and irrigation pumps, and underfloor heating. They're designed to power systems that don't need instant consumption, only powered during periods where electricity is generally cheaper than off-peak rates.
Controlled loads are managed remotely by electricity providers where appliances are powered usually overnight or during low-demand periods.
Because they are on their own meter, it's easier to track individual usage which can be billed at a separate rate than your general household consumption.
Ausgrid's controlled
tariff
periods include:
What are Smart Meters?
A Smart Meter is essentially a tool that can be installed to allow properties to see accurate and clear data of their energy consumption, which allows the owner to make informed decisions about when and how long to use appliances.
One of the most well-known rebates across Australia is the solar feed-in-tariff, which enables homeowners to export their excess solar power for credit on their electricity bill.
In recent years, the value per kWh of exported solar has been reduced as more and more households continue to rely on solar production.
Depending on which energy provider you're with, they offer various packages and incentives which helps homeowners access higher rewards, mostly ranging from 3-5c/kWh exported.
Whilst the solar export reward used to be much higher, there is still a great opportunity for large energy consumers to greatly offset their daytime electricity usage with the solar they generate.
Households are no longer focused on exporting, but consuming the power they produce. This is also maximised with battery storage where homeowners can continue consuming stored solar long into the night.
Demand response is a program that you can partake in where customers are paid to keep the electrical grid stable by balancing the supply and demand. It allows for a more balanced system and rewards participants for throttling consumption or for using more power in times of over-supply.
A great example would be a building with lots of refrigeration. The operator will notify the participant to limit electricity
consumption, until a certain time in order to reduce the electrical load on the grid. They would do this by either turning the fridges off
temporarily, and in the process the participant is rewarded for throttling their usage.
The same thing happens when the system has too much supply and not enough demand, the participant would then be notified to turn all
fridges up to soak up the generated energy and be paid for it.
With the transition to renewable energy happening, we will most likely see a higher rate of grid failures and higher grid energy costs as coal-fired power stations close across Australia. We believe now is the best time ever to invest in solar as rebates are still available (not for long), and the rapidly growing demand for grid security.
If you want to see if you’re on the cheapest energy plan, we recommend visiting ‘Energy
Made Easy’
where you can simply compare energy plans, it’s great.
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