How to save money with time-of-use tariffs in Sydney

Time-of-use (TOU) tariffs are a pricing structure where the cost of electricity varies depending on the time of day. For Sydney households in the Ausgrid network, this presents a significant opportunity to reduce power bills by being strategic about when you use energy. The core principle is simple: use less electricity when it’s expensive (peak) and shift as much consumption as possible to when it’s cheaper (shoulder and off-peak).

Successfully saving money with time-of-use tariffs involves a combination of behavioural changes and technology. You can achieve savings by:

• Shifting your usage: Consciously running high-energy appliances during cheaper periods.

• Adopting smart technology: Using smart meters and energy management systems to automate this shift.

• Generating and storing your own power: Using solar panels and a home battery to become largely independent of peak grid prices.

For those with a smart meter, which is a prerequisite for these tariffs, understanding your provider’s specific time windows is the essential first step.

What are the peak, off-peak, and shoulder electricity times in Sydney?

In Sydney, the electricity distributor Ausgrid sets the underlying network tariff windows. However, electricity retailers like Origin and Energy Australia can and often do set their own distinct peak, off-peak, and shoulder periods for their customers.

It is crucial to check the specific times on your electricity plan’s fact sheet, as they can vary significantly. As of 2025, the official network tariff periods have been simplified, but many retailers still use the three-tiered structure.

Ausgrid time-of-use tariff windows 2025

The Ausgrid network, which covers most of Sydney, has officially moved to a simpler two-season, two-rate tariff structure. This means there are peak prices during high-demand months and off-peak prices for all other times.

AU Solar Panels’s Pro Tip: While these are the network times, your retailer may apply different peak hours all year round. Always check your specific plan, as some retailers add hundreds of extra peak hours a year compared to the default network tariff, which can significantly impact your bill if you’re not careful.

Compare electricity provider time-of-use rates Sydney

The difference in cost between peak and off-peak periods can be substantial. Peak rates are often more than double the off-peak rates, creating a powerful financial incentive to shift your energy use. Below is a comparison of example time-of-use tariffs from major providers in the Ausgrid network. Note that these rates are subject to change and vary between specific plans.

This table clearly illustrates why shifting even a single dishwasher cycle from 6pm to 10:30pm can cut its running cost by more than half.

Best electricity plans for time-of-use billing Sydney

The “best” plan depends entirely on your household’s consumption pattern.

• For households who can shift significant load: A plan with the lowest off-peak rate is most attractive. Even if the peak rate is high, you can avoid it by running appliances late at night.

• For households with solar (but no battery): A plan with a favourable shoulder rate is beneficial. Solar generation typically covers the early part of the peak window, but you may still draw from the grid in the early evening as the sun goes down. A lower shoulder rate during this time is advantageous.

• For households with solar and battery: The focus shifts. You are less concerned with peak import rates (as your battery will cover this) and more interested in a reasonable daily supply charge and a good solar feed-in tariff for any excess energy you might export.

We recommend using the government’s free Energy Made Easy comparison tool to compare all available plans based on your actual usage data from a recent bill.

Strategies for shifting appliance usage to off-peak hours

Shifting your energy consumption doesn’t have to be difficult. The key is to target the most energy-hungry appliances. Many modern appliances have built-in timers, making this process simple to automate.

• Dishwasher: Set it to run overnight, finishing before you wake up.

• Washing Machine & Dryer: Clothes dryers are one of the most power-hungry appliances in any home. Whenever possible, schedule laundry for the weekend or late in the evening.

• Hot Water System: If you have an electric storage hot water system, ensure it’s on a dedicated controlled load tariff or set its heating cycle via a timer to operate during off-peak hours.

• EV Charging: Always schedule your electric vehicle charging to occur deep into the off-peak window (e.g., after midnight).

• Pool Pumps: Run your pool pump during the middle of the day to take advantage of solar generation, or overnight during off-peak hours if you don’t have solar.

Energy consumption of major home appliances Australia

To prioritise your efforts, it’s helpful to know which appliances use the most power. The table below shows the typical energy consumption for a single cycle or hour of use for common household items.

By focusing on the top three or four items on this list, you can make the biggest impact on your electricity bill.

Using smart meters and home energy management systems

A smart meter is the foundational technology for time-of-use tariffs, as it records your consumption in 30-minute intervals. However, you can enhance your savings with a Home Energy Management System (HEMS). A HEMS can integrate with your solar panels, battery, and smart appliances to automatically optimise your energy use. For example, it can see that your solar generation is dropping and automatically turn on the dishwasher to use the last of the free sun power before you start drawing from the grid.

Cost-effectiveness of home battery storage with time-of-use tariffs in NSW

For ultimate control over your energy costs, nothing beats pairing solar panels with a home battery. This combination allows you to become a “prosumer” — producing and managing your own energy. During the day, your solar panels power your home and charge your battery with excess energy, which would otherwise be exported for a small feed-in tariff. Then, as the expensive evening peak period begins, your home seamlessly switches to running on the stored battery power, avoiding high grid prices altogether.

Case Study: A Family in Parramatta The Sharma family was facing quarterly electricity bills of over $700 due to their evening energy habits. They installed a 6.6kW system using Trina panels and a 10kWh Sungrow SBR battery for a total cost of approximately $15,000. After accessing the Federal battery rebate and the NSW VPP incentive, their upfront cost was reduced by over $4,500. Their system now allows them to avoid virtually all peak grid usage, saving them over $2,100 per year. This puts them on track for a payback period of just under 5 years, and their last bill was almost entirely the daily grid connection fee.

NSW government rebates for energy-efficient appliances and solar batteries

The NSW Government provides incentives to encourage homeowners to adopt energy-efficient technology.

• Home Battery Storage: While the primary NSW battery installation rebate was phased out in mid-2025, the landscape for support is still strong. Homeowners can now access the Federal Government’s Cheaper Home Batteries Program, which provides a significant upfront discount. Furthermore, this can be combined with the NSW Government’s enhanced Virtual Power Plant (VPP) incentive, which offers up to $1,500 for connecting your battery to a VPP.

• Energy-Efficient Appliances: Through the Energy Savings Scheme (ESS), NSW residents can receive upfront discounts on the installation of high-efficiency appliances like air conditioners and heat pump hot water systems. These discounts are provided by accredited installers, who manage the paperwork for you.

By taking a strategic approach and leveraging modern technology, Sydney households can turn time-of-use tariffs from a challenge into a powerful tool for saving money. If you’re ready to explore how a solar and battery system could work for your home, we can help.

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