What is a Free Nights Electricity Plan?

What is free nights electricity?

Free nights electricity is a type of energy plan where the Energy Charge is 0.00 cents per kWh (free) at night during a specific window of time.

Often, this window is between 9:00 PM to 7:00 AM or 8:00 PM to 6:00 AM. The free window will vary by provider and plan.

During the window, any electricity consumed is not added to the Energy Charge portion of your bill.

Here’s an example of a free nights electricity plan Electricity Facts Label (EFL):

During the daytime, you are charged a higher-than-average Energy Charge.

While these plans may initially seem like a no-brainer choice, there are many factors to consider before enrolling.

How do free nights plans work?

When you enroll in a free nights electricity plan, your usage is monitored by a smart meter.

Any kWh usage that is measured during the non-free hours is charged according to the terms of the Electricity Facts Label, and any kWh usage measured during the free window is not charged an Energy Charge.

Are free nights plans really free at night?

Free nights electricity plans are only partially free at night.

While the energy charge is 0.00 cents per kWh, you are still required to pay TDU delivery or pass-through charges to your regional utility (ex: Oncor or CenterPoint).

That means you still end up paying for your power consumption at night, but only to your utility company.

Why do Texas providers offer free nights plans?

The most common explanation for why providers offer these gimmicky plans is to encourage Texans to shift their power consumption overnight and reduce demand on the state’s grid during the day.

That’s a very nice explanation, but it’s unlikely that’s the real reason.

The real reason is likely more related to their marketability and profitability. In other words, free nights plans are easy to sell and they can help energy companies earn more money.

Free nights plans are easy to sell simply because they have the word “free” in the name. And who doesn’t love free?

They are also great revenue boosters due to how difficult it is for Texans to shift their consumption overnight, and due to the elevated Energy Charges.

Should you sign up for a free nights plan?

Do free nights electricity plans actually help Texans save money? It depends on when you use the majority of your power at home.

Who can benefit from free nights?

People who live alone and work away from home all day
Homeowners with solar panels
People who live alone and travel often, who aren’t home regularly

Who should avoid free nights?

Remote workers who run laptops and computers all day
People who spend lots of time at home during the day for any reason
Anyone who is not able to shift the majority of their consumption overnight

How to save money with free nights

These are the steps you can take to make a free nights plan work in your favor:

Run dishwasher overnight
Run laundry machines overnight
In summer, run the air conditioning at night, but not during the day
In winter, run the heater at night, but not during the day
Unplug unused electronics during the day, like computers, laptops, lamps, toasters – anything that can be responsible for “phantom energy”
Turn the lights off all day

BKV Energy’s recommendation

Due to the difficulties that come with shifting energy usage, BKV Energy recommends signing up for a simple fixed-rate plan instead of a free nights plan.

Written by Graham Lumley

Graham Lumley is the Growth Product Manager at BKV Energy, a retail electricity provider in Texas' deregulated market, where he has worked since 2023. He analyzes customer usage and billing data, helps develop BKV's fixed-rate plans, and creates tools to simplify Texas electricity shopping. He has written over 200 articles on Texas electricity rates, delivery charges, plan types, energy generation, and more to help Texans understand their bills and pay less. With over 10 years of experience in consumer products, marketing, and energy, he explains the Texas electricity market in plain language.