Time-of-use (TOU) tariffs are electricity plans that charge different rates at different times of the day. Prices are usually higher during peak hours when many people use power and lower in off-peak times when demand is low.
For homeowners, TOU means the time you use electricity matters as much as how much you use.
This system is becoming common across Australia because it helps balance the grid and can lower overall costs when used smartly.
In this post, we will learn how dynamic electricity pricing & time-of-use tariffs affect savings
How Dynamic Pricing Works in Australia
Dynamic pricing is a type of TOU tariff in which electricity costs can vary by hour or even by 30-minute intervals.
In Australia, retailers and networks set prices based on demand, wholesale costs and network needs.
You might see:- Peak periods: usually early evening when people cook, heat and chill their homes. These times cost the most.
- Shoulder periods: moderate prices in the morning and late afternoon.
- Off-peak periods: late night and early morning, when prices are lowest.
Some dynamic plans are fixed TOU blocks set by the retailer. Others are more flexible and mirror wholesale market movements.
Either way, rates shift to encourage users to move flexible loads to off-peak times. For Australian households with smart tech, this shift can mean real savings.
Why Time-of-Use (TOU) Matters for Australians
Australia has a rising energy demand driven by hot summers and increased use of electric devices. TOU gives consumers a way to respond to price signals. It also pairs well with rooftop solar and home batteries.
If you can shift big uses like hot water, washing and vehicle charging to low-cost times, you lower your bill and use power when the grid needs it less.
Optimising Your Heat Pump, Aircons & Battery Usage
Heat pumps, air conditioners, and batteries are three home systems that work well with TOU tariffs.
Heat Pump Hot Water System & Aircon
- Schedule heating and cooling for off-peak times where possible. For example, pre-heat or pre-cool your home before the peak period starts, so the aircons and heat pump run less when prices are high.
- Use lower power modes during peak times and slightly higher modes during shoulder or off-peak periods, as needed.
- Improve home insulation and sealing to help your heat pump maintain temperature longer. Better insulation reduces runtime and improves savings.
Battery Systems
- Charge batteries during off-peak or when solar output is high. This stores cheap energy for later use.
- Discharge batteries during peak periods to avoid buying expensive grid power.
- Set battery rules that match your TOU schedule. For example, set charging to start at the beginning of off-peak and discharging to start 30 minutes before peak.
Together
If you have both a heat pump and a battery, coordinate them. You can use solar power to run the heat pump during the day and charge the battery.
Let the battery support the home during the evening peak. This reduces imports during expensive times and boosts savings.
SLA App: Monitoring & Automation
Smart control is the easiest path to better TOU savings. The SLA HEMS app and other SLA energy solutions help automate and monitor energy use, so you don’t have to guess.
How the SLA Home App Helps
The SLA Home App puts energy insights and smart control in the hands of the household.
- Live monitoring: see current energy use, solar generation and battery state at a glance.
- Scheduling: set rules for devices such as heat pumps and EV chargers to operate during off-peak windows.
- Automation: the app can switch loads automatically based on price signals or time blocks.
- Insights: get simple tips and reports on how to shift usage to cheaper times.
SLAs Energy Solutions
SLA offers a range of home energy management products that work with the EMS app.
These let you control appliances, manage battery flow and set smart charging or discharging behaviours.
Using these tools makes it much easier to follow a TOU plan without sacrificing comfort.
Real Savings Example
Here is a simple, realistic example to show how TOU savings add up. Numbers are illustrative and will vary by tariff and usage.
Household Profile
- Family home with a hot water heat pump for hot water and space heating.
- 6 kW solar system with battery storage.
- Typical daily electricity use is 25 kWh, with 6 kWh from solar exported or stored normally.
- Household uses grid power freely. Peak hours are used for evening lights, cooking and hot water cycles.
- Peak consumption 8 kWh at $0.50 per kWh = $4.00
- Shoulder consumption 7 kWh at $0.30 per kWh = $2.10
- Off-peak consumption 10 kWh at $0.15 per kWh = $1.50
- Daily cost = $7.60
- Move hot water heating and some heating to off-peak.
- Charge the battery during off-peak hours and use it during peak hours.
- Peak consumption reduced to 2 kWh at $0.50 = $1.00
- Shoulder consumption 6 kWh at $0.30 = $1.80
- Off-peak consumption 17 kWh at $0.15 = $2.55
- Daily cost = $5.35
Daily savings = $2.25, or about 30% lower. Over a month, this is significant, and over a year, it adds up further. These steps also reduce demand on the grid and make the most of rooftop solar and batteries.
Simple Steps You Can Take Right Now
✔ Check your tariff: Know your peak, shoulder and off-peak times and rates.
✔ Shift loads: Run dishwashers, washing machines and pool pumps in off-peak.
✔ Smart schedule: Set the hot water heat pump to pre-heat before peak times and use lower settings during peak.
✔ Use battery wisely: Charge in off-peak or with solar, discharge at peak.
✔ Use an app: The SLA HEMS app helps automate these actions without constant monitoring.
✔ Insulate: Small changes like draught proofing reduce run time for heating and cooling.
How to Get the Most from Dynamic Electricity Pricing
Time-of-use tariffs and dynamic pricing change how electricity costs are set. For many Australian homes, small changes in when and how you use energy can lead to meaningful savings.
Using an electric hot water heat pump smartly, adding an SLA LIFE battery, and automating with the SLA EMS app will make those savings easier and more reliable.
Start by learning your tariff times, shift flexible loads, and let automated tools do the rest. Over time, these habits lead to lower bills and a smarter, greener home.
Visit SLA to explore smart energy tools and solutions designed to help Australian homes get more from dynamic electricity pricing.
FAQs
Q: Will TOU always save money?
A: Not always. Savings depend on your ability to shift use and your home setup. If you cannot change when you use large loads, TOU might not help much.
Q: Do I need solar or a battery?
A: No, but solar and batteries make it easier to save more under TOU plans. They let you use cheap or self-generated energy during expensive periods.
Q: How do I get started with SLA?
A: Visit the SLA home page and the products pages to see compatible devices and the SLA HEMS app. The app makes monitoring and automation simple.
Q: Can I save if I have an irregular schedule?
A: Yes. Smart scheduling or the SLA app can help you shift usage to cheaper times.
Q: Are there risks with dynamic pricing?
A: Prices can often change. Automation and monitoring help avoid high bills.
