Are Free Nights Plans Worth It? Real Data from Two Texas Homes

The Watt Owl mascotWatt Owl6 min read
Modern house with blue lights illuminated at night, representing nighttime electricity usage in free nights plans

Key Takeaways

  • We ran 15-minute Smart Meter Texas data from two DFW homes through four types of free nights and weekends plans. None beat a competitive fixed-rate plan.
  • Only 15–22% of real household usage falls during free nighttime hours, well below the 47% breakeven threshold.
  • On most plans, "free" electricity still costs about 6¢/kWh in TDU delivery charges. A few plans waive delivery too, but their peak rates jump above 20¢/kWh.
  • The math works only if you can shift close to half your total usage into free hours. Most households can't.
Rates accurate as of February 22, 2026

Free nights electricity plans sound like a great deal. Use electricity at night for free, save money on your bill. But "free" has a cost, and most advice about these plans is based on hypothetical math, not actual usage data.

We took 15-minute interval data from two real DFW homes, exported straight from Smart Meter Texas, and ran both through four types of free nights and weekends plans. Then we compared those bills against the cheapest fixed-rate plan in Oncor territory, measured in cost per kWh.

The results weren't close.

The experiment: two real Texas homes, four plan types

Two households, both in Oncor territory (Dallas electricity rates area), both with real Green Button data from Smart Meter Texas.

Home A is a typical Texas house. About 1,200 square feet, one AC system. Average usage: 571 kWh per month across 23 months of data (March 2024 through January 2026). Summer months spike to 953 kWh. Winter drops to 340 kWh.

Home B is bigger. About 2,800 square feet, two AC systems. Average usage: 1,467 kWh per month across 11 months (March 2025 through January 2026). Summer months topped 2,000 kWh.

We ran both homes through four plans available in Oncor territory (as of February 2026) and compared each against a competitive 10.5¢/kWh all-in fixed-rate plan. All four charge full TDU delivery during free hours:

  • A free-nights plan: 11 PM – 6 AM free window, 8.48¢/kWh peak energy rate
  • A free-nights plan: 9 PM – 5 AM free window, 13.99¢/kWh peak energy rate
  • A free-weekends plan: Sat + Sun free, 11.90¢/kWh weekday energy rate
  • A discounted-nights plan: 8 PM – 8 AM, 8.60¢ off-peak / 10.60¢ peak (reduced rate, not free)

How we did the math

Every 15-minute interval from Smart Meter Texas has a timestamp and kWh reading. We sorted each interval into "free" or "paid" based on each plan's time window.

For free-night plans, any interval starting during the plan’s free hours counts as free. For the free-weekends plan, any interval on a Saturday or Sunday counts as free.

Then we calculated bills using real tariff components:

TOU plan bill = (paid kWh x peak energy rate) + (all kWh x TDU delivery rate) + TDU monthly charge

Fixed plan bill = all kWh x 10.5¢ all-in

TDU delivery charges apply to every kWh on the plans we tested, including during free hours. In Oncor territory, that's 5.58¢ per kWh plus $4.23 per month (source: PUC FTP rate reports, as of February 2026). Some plans from other providers waive delivery during free hours. Our free nights and weekends guide covers how to tell the difference.

How much more does a typical home pay on free nights?

Home A uses 571 kWh per month on average. On a 10.5¢ fixed-rate plan, that's $59.99 per month. Here's what each TOU plan costs:

Home A Monthly Bills: TOU Plans vs. Fixed Rate (as of February 2026, Oncor territory)
PlanMonthly Billvs. Fixed Rate
10.5¢/kWh fixed rate (baseline)$59.99
Free nights, 11 PM–6 AM (8.48¢ peak)$73.74+$13.74/mo
Free weekends, Sat–Sun (11.90¢ weekday)$84.94+$24.94/mo
Disc. nights, 8 PM–8 AM (10.60/8.60¢)$91.99+$32.00/mo
Free nights, 9 PM–5 AM (13.99¢ peak)$93.96+$33.97/mo

The cheapest TOU option still costs $13.74 more per month, or $165 extra per year. The most expensive free-nights plan adds nearly $34 per month, or $408 per year.

Why? Only 22.4% of Home A's electricity use happens between 11 PM and 6 AM. The other 77.6% gets charged at the higher peak rate.

Do high-usage homes save more on free nights plans?

Home B uses 1,467 kWh per month. The gap gets wider at higher usage:

Home B Monthly Bills: TOU Plans vs. Fixed Rate (as of February 2026, Oncor territory)
PlanMonthly Billvs. Fixed Rate
10.5¢/kWh fixed rate (baseline)$153.99
Free nights, 11 PM–6 AM (8.48¢ peak)$191.01+$37.02/mo
Free weekends, Sat–Sun (11.90¢ weekday)$210.18+$56.19/mo
Disc. nights, 8 PM–8 AM (10.60/8.60¢)$230.63+$76.64/mo
Free nights, 9 PM–5 AM (13.99¢ peak)$239.30+$85.31/mo

Home B's gap is even bigger. The best TOU deal adds $37.02 a month to the bill. The worst? An extra $85.31, which works out to $1,024 per year.

Home B has an even lower free-period percentage: 15.6% of usage falls in the 11 PM - 6 AM window. Bigger homes run AC harder during the day, pushing more usage into peak hours.

When do free nights plans actually save money?

They can, in theory. You’d need 47% of your total usage to fall in the cheapest plan’s 11 PM – 6 AM window to break even with a 10.5¢ fixed plan. For the most expensive free-nights plan (higher peak rate), you’d need 68%.

Breakeven Analysis: How Much Free-Period Usage You Need (at 1,000 kWh, Oncor territory)
PlanBreakeven Free %Actual (Home A)Actual (Home B)
Free nights, 11 PM–6 AM (8.48¢ peak)47.0%22.4%15.6%
Free weekends, Sat–Sun (11.90¢ weekday)62.2%28.1%28.7%
Free nights, 9 PM–5 AM (13.99¢ peak)67.9%27.6%25.1%
Disc. nights, 8 PM–8 AMNever*41.2%37.2%

*The discounted-nights plan’s off-peak rate (8.60¢) plus TDU delivery (5.58¢) exceeds the 10.5¢ fixed rate. This plan costs more than a fixed-rate plan at any usage split.

Nobody in our data comes close to breakeven. The widest free window we tested (8 PM – 8 AM) captures 41.2% of Home A's usage. But that plan's off-peak rate isn't free. At 8.60¢ plus 5.58¢ delivery, the all-in rate is 14.18¢. That's more expensive than the 10.5¢ fixed plan even during "discount" hours.

One finding that surprised us: the free-period percentage barely changes by season. For the 11 PM – 6 AM window, Home A’s free percentage ranges from 22.1% in summer to 23.4% in winter. AC runs harder in summer, but it runs during the day. Nights are still nights.

And for plans that charge TDU during free hours, the math gets worse outside Oncor territory. In Houston (CenterPoint territory), TDU delivery runs 6.0¢/kWh plus $4.90/month. That means “free” electricity costs about 6.5¢/kWh in delivery alone. In TNMP territory, it’s over 8¢/kWh.

So are free nights plans worth it?

Based on real usage data from two DFW homes, free nights plans cost $165 to $1,024 more per year than a competitive fixed-rate plan. The math doesn't work for typical households because not enough usage falls in the free hours.

The only scenario where these plans could make sense: you can genuinely shift close to half your total usage into nighttime hours. Night-shift workers who sleep during the day might get there. But for the average household, a good fixed-rate plan wins. (Curious about bill credit plans? Those are a different story — same marketing appeal, different math.)

Don't take our word for it. Export your own data from smartmetertexas.com and check what percentage falls in the free window. If it's below 47%, a fixed-rate plan is cheaper. Use our free nights and weekends calculator to run the numbers for your ZIP code.

See What You'd Pay on a Fixed-Rate Plan

Enter your current rate and usage to see how top fixed-rate plans compare.

ZIP 77001 (CenterPoint Energy service area)

kWh
100-5,000 kWh range
ProviderPlanRateEst. BillTerm
JUST ENERGY logo
Smart Choice - 12JUST ENERGY8.5¢$8512moDetails
CHARIOT ENERGY logo
GridPlus 12CHARIOT ENERGY• 100% Green8.8¢$8812moDetails
FRONTIER UTILITIES logo
Frontier Power Saver 12FRONTIER UTILITIES12.3¢$12312moDetails

Estimates based on published rates and the usage you entered. Actual bills vary by usage pattern, fees, and provider terms. See our methodology.

Frequently Asked Questions

On most plans, yes. You pay $0 for the energy charge, but TDU delivery charges (5.58¢/kWh in Oncor territory) still apply during free hours. That means "free" electricity costs about 6¢/kWh on those plans. A few plans waive TDU delivery during free hours too, making those hours genuinely $0/kWh, but their peak rates run above 20¢/kWh. Check the plan's EFL for separate day/night delivery lines to tell which type you're looking at.

Register at smartmetertexas.com using your ESID (a 17-22 digit number on your bill) and meter number. Once set up, export your 15-minute interval data as a CSV using the Green Button feature. This shows exactly when you use electricity and how much. You can then sort by time to see what falls in a plan's free window.

Based on our data, neither saves money compared to a good fixed-rate plan. But if you’re choosing between them: free weekends capture about 28.7% of usage (close to the theoretical 2/7 = 28.6%). Free nights capture 15–28% depending on the time window. The breakeven for the cheapest free-nights plan we tested requires 47% of usage during free hours. Neither household in our analysis came close.

The free nights pitch is appealing but the numbers don't support it for most homes. Compare plans based on your actual usage, not marketing labels.

Compare Plans for Your ZIP Code

Watt Owl is a licensed electricity broker in Texas (PUCT License BR260022). We may earn a commission when you enroll through our links. Our recommendations are based on transparent rate calculations, not commission size.

Sources

  1. Smart Meter Texas Residential User Guide
  2. DOE Green Button Initiative
  3. PUCT Rule §25.475 (Full Text PDF)
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