Did you know you can pay less than 10% of the highest electricity rates just by choosing when and how you use power? This can be a game changer in your home electrification journey.
In this guide, we’ll break down how Ontario’s off-peak and ultra-low overnight rates work, why they matter when you install heat pumps, battery storage, and EV chargers, and exactly how you can take advantage of these rates to save hundreds of dollars a year while making your home cleaner and more efficient.
🕐 What Is Time-of-Use Pricing in Ontario?
Ontario uses a time-of-use (TOU) electricity pricing system for most residential customers. That means the cost of power changes based on when you use it, not just how much you use.
There are three pricing periods:
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Off-Peak: lowest cost (typically evenings, overnight, and weekends)
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Mid-Peak: moderate cost (weekday midday)
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On-Peak: highest cost (weekday mornings and early evenings)
💰 What Is the Ultra-Low Overnight Rate in Ontario?
Beyond these ‘regular’ tiers, Ontario offers an Ultra-Low Overnight electricity rate designed to help homeowners save even more when using electricity overnight:
👉 2.4 cents per kWh
This ultra-low rate applies every day: from 11:00 p.m. to 7:00 a.m.
Compared to on-peak rates of 28.6 cents/kWh, it’s clear: when you use or store electricity matters as much as how much you use.
🔋 How to Take Advantage of Off-Peak Energy Rates
Smart energy use isn’t just about turning things off or changing your habits. It’s about investing in your home’s energy infrastructure so you can automatically take advantage of these special rates—without thinking about it.
With a home battery system and modern electric upgrades, you can:
🔋 Charge your battery during ultra-low overnight hours (as low as 2.4¢/kWh) and draw on it any time of day, keeping your lifestyle exactly the same.
🌡️ Use programmable thermostats and smart controls to preheat your home or water with inexpensive electricity, then maintain comfort all day.
🚗 Schedule EV charging automatically overnight, so you’re always starting the day with a full battery at the lowest possible cost.
By combining battery storage with home electrification—like heat pumps, induction cooktops, and electric water heaters—you lock in long-term savings while enjoying consistent comfort, no matter when you’re home.
🏡 Why This Matters for Home Electrification
When electrifying your home, you have the opportunity to take advantage of these low energy rates using a lithium-ion battery.
A battery lets you store low-cost, off-peak electricity and use it any time you need it.
Here’s a brief overview of how it works:
- Charge your battery during ultra-low overnight periods, when rates drop even further (as low as 2.4¢/kWh under Ontario’s Ultra-Low Overnight plan)
- Power your heat pump, water heater, and appliances during on-peak hours without paying higher rates
- Maintain backup electricity during outages or peak demand
Dawn Energy customers who combine heat pump installation with battery storage often see the biggest benefits. By shifting when you buy electricity—and when you use it—you can keep your home comfortable, lower your bills, and reduce strain on the grid.
✅ The Bottom Line
Ontario’s ultra-low overnight electricity rate of 2.4 cents/kWh is one of the most powerful tools for lowering your energy bills, especially when you don’t want to change how or when you use power.
When you combine home electrification upgrades, like a heat pump, with a home battery system and smart controls, you can automatically store cheap electricity overnight and use it any time.
With the Ontario rebate for heat pumps, interest-free loans, and increasingly affordable battery storage, there’s never been a better time to make your home cleaner, safer, and more cost-effective.
✅ Ready to See If Electrification Makes Sense for Your Home?
We’ll help you understand how heat pumps work, compare heat pump vs AC, and find rebates and off-peak strategies to maximize your savings.
Explore our Home Electrification Roadmap or connect with our team to learn more.
