“Free electricity” is one of the most effective marketing tricks in Texas. And most people who sign up for these plans pay more than they would on a standard rate.
Here’s the game: Providers advertise “FREE Nights!” in giant letters and bury the 18-22 cent daytime rate in the fine print. They’re betting you work from home, run your AC during the day, or simply can’t shift enough usage to nighttime hours. For the average Texas household, free nights plans cost more than standard fixed-rate plans.
But for a specific type of customer—EV owners who charge overnight, night shift workers, or disciplined households that can genuinely shift usage—these plans can save real money.
Let’s expose how these plans actually work, run the real math, and figure out if you’re one of the few people who should actually sign up.
The “Free” Electricity Business Model
The concept sounds simple: you pay nothing for electricity during designated “free” hours, but you pay a premium rate during all other hours.
What They Advertise vs. Reality
What you see in the ads:
- “FREE electricity from 9 PM to 6 AM!”
- “Save on your electric bill!”
What you pay:
- Daytime rates of 15-25 cents per kWh (50-100% higher than standard plans)
- That “free” electricity is subsidized by punishing rates when you actually use the most power
Most Texas households use 60-70% of their electricity during daytime hours. If that describes you, the math doesn’t work.
Why Providers Love These Plans
Electricity providers aren’t giving away power out of generosity. These plans are highly profitable because:
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Wholesale prices drop at night: ERCOT wholesale rates typically fall 40-60% between midnight and 6 AM when demand is lowest. Providers can afford to give away cheap overnight power.
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They profit on daytime rates: The premium daytime rates more than compensate for free nighttime electricity—for most customers.
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Peak demand shifting: By incentivizing nighttime usage, these plans reduce strain on the grid during expensive peak hours, benefiting everyone.
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Marketing appeal: “Free” electricity is a powerful hook. These plans attract customers who might otherwise shop purely on rate.
The business model only fails when customers actually shift most of their usage to free hours. For the average household, the provider comes out ahead.
The Real Math: Calculating Your Actual Cost
Let’s run the numbers for a typical Texas household using 1,000 kWh per month.
Scenario 1: Average Usage Pattern
Most Texas households use electricity roughly as follows:
- 35% during free night hours (9 PM - 6 AM)
- 65% during paid daytime hours
Standard fixed-rate plan at 12 cents/kWh:
- 1,000 kWh x $0.12 = $120/month
Free Nights plan at 18 cents during paid hours:
- Free usage: 350 kWh x $0.00 = $0
- Paid usage: 650 kWh x $0.18 = $117
- Total: $117/month
Savings: $3/month ($36/year)
That’s barely worth the hassle for an average user. The math only gets interesting when usage patterns shift dramatically.
Scenario 2: Night Owl Household
A household that shifts 60% of usage to free hours:
Free Nights plan at 18 cents during paid hours:
- Free usage: 600 kWh x $0.00 = $0
- Paid usage: 400 kWh x $0.18 = $72
- Total: $72/month
Savings vs. standard plan: $48/month ($576/year)
Now we’re talking. But achieving 60% nighttime usage requires significant lifestyle changes or specific circumstances.
Scenario 3: Daytime-Heavy Household
A work-from-home household using 75% during paid hours:
Free Nights plan at 18 cents during paid hours:
- Free usage: 250 kWh x $0.00 = $0
- Paid usage: 750 kWh x $0.18 = $135
- Total: $135/month
Extra cost vs. standard plan: $15/month ($180/year)
For daytime-heavy users, free nights plans actually cost more.
Who Benefits Most from Free Nights Plans
EV Owners Who Charge at Home
Electric vehicle charging is the perfect use case for free nights electricity. A typical EV uses 250-400 kWh monthly for charging, and that charging can happen entirely at night. See our complete guide to electricity plans for EV owners.
Example: EV household using 1,400 kWh/month (1,000 home + 400 EV)
Standard plan at 12 cents:
- 1,400 kWh x $0.12 = $168/month
Free Nights plan (400 kWh EV charging at night, normal home usage):
- Free usage: 750 kWh (350 home + 400 EV) x $0.00 = $0
- Paid usage: 650 kWh x $0.18 = $117
- Total: $117/month
Savings: $51/month ($612/year)
EV owners with home charging are the clearest winners. If you can plug in at 9 PM and charge overnight, free nights plans can cut your transportation electricity cost to zero.
Second and Third Shift Workers
If your work schedule means you’re home during the night and asleep during the day, your natural usage pattern aligns perfectly with free hours. Night shift workers who run AC, appliances, and entertainment during free hours while sleeping through peak pricing periods benefit significantly.
Pool and Hot Tub Owners
Pool pumps are one of the biggest electricity hogs in Texas homes, running 8-12 hours daily. Most pumps can be scheduled to run during free hours without affecting pool cleanliness. A pool pump using 150-200 kWh monthly represents pure savings when shifted to nighttime operation.
Households with Smart Thermostats
Programmable thermostats can pre-cool your home during free hours, reducing daytime AC needs. If you keep your home at 68 degrees overnight (during free hours), you can let it drift up to 74-76 during expensive daytime hours without discomfort. The overnight cooling “banks” cold that extends into the morning.
Electric Water Heater Users
Water heaters represent 15-20% of home electricity use. With a timer, you can heat water only during free hours. The insulated tank maintains temperature for hours, providing hot water through the morning without daytime electricity use.
Who Should Avoid Free Nights Plans
Work-From-Home Professionals
If you’re running a computer, monitors, and climate control from 9 AM to 5 PM every weekday, you’re using peak electricity during the most expensive hours. Work-from-home households often see their daytime usage jump 40-50%, making free nights plans a losing proposition.
Households with Daytime Schedules
Families with stay-at-home parents, retirees, or anyone home during the day naturally use more peak-hour electricity. Running the dishwasher at 2 PM, doing laundry midday, or cooling an occupied home through Texas summer afternoons means paying premium rates for the bulk of your usage.
Low-Usage Households
If you use under 700 kWh monthly, the absolute dollar savings from free nights plans are minimal. A 20% savings on a $60 bill ($12/month) isn’t worth the complexity of scheduling your usage around free hours.
Renters Without Smart Controls
Taking full advantage of free nights plans requires programmable thermostats, timer-controlled water heaters, and appliance scheduling. If you can’t install smart home devices or modify existing systems, you can’t shift enough usage to make these plans worthwhile.
Comparing Major Free Nights Plans
TXU Energy Free Nights
TXU’s Free Nights plan is the most recognized option in Texas. Here’s what the current plan offers:
Free hours: 9 PM to 6 AM daily Daytime rate: Typically 18-22 cents per kWh (varies by contract length and market conditions) Contract length: 12-24 months Bill credits: None included
TXU’s name recognition and established free nights program make it a safe choice, but their daytime rates often run higher than competitors. Always compare the effective rate against other free period plans.
Reliant Nights Free Plan
Reliant offers free nights with slightly different terms:
Free hours: 8 PM to 5 AM (9 hours, similar to TXU) Daytime rate: Typically 17-21 cents per kWh Contract length: 12-36 months Bill credits: Some plans include bill credits at usage thresholds
Reliant occasionally offers more competitive daytime rates than TXU, making direct comparison essential before signing.
Free Weekends Alternatives
Some providers offer free weekends instead of or in addition to free nights:
Free hours: All day Saturday and Sunday Weekday rate: 16-20 cents per kWh
Free weekends plans work better for households that are away during the week but home on weekends. If you work traditional hours and do all your laundry, cleaning, and cooking on Saturday and Sunday, weekend-free plans align better with your actual usage.
How to Calculate Your Break-Even Point
To determine if a free nights plan saves money, you need to know what percentage of your usage falls during free hours.
Step 1: Get Your Hourly Usage Data
Request smart meter data from your TDU (Oncor, CenterPoint, AEP Texas, or TNMP). This data shows your hourly consumption for the past 12 months. Most TDUs provide this through their online portals. Learn more about TDU charges and what they mean.
Step 2: Calculate Your Free-Hour Percentage
Add up usage during free hours (typically 9 PM - 6 AM) and divide by total usage:
Free-hour usage / Total usage = Free-hour percentage
Step 3: Find Your Break-Even Point
The break-even formula compares your current rate against the free nights plan:
Break-even free-hour % = 1 - (Current rate / Daytime rate)
Example: If your current rate is 12 cents and the free nights daytime rate is 18 cents: Break-even = 1 - (0.12 / 0.18) = 1 - 0.67 = 33%
You need 33% or more of your usage during free hours to save money. If your smart meter data shows 40% nighttime usage, the plan works for you. If it shows 25%, you’ll pay more.
Step 4: Calculate Actual Savings
Once you know your free-hour percentage, calculate your estimated monthly bill:
Monthly cost = (1 - free %) x total kWh x daytime rate
Compare this against your current plan’s cost:
Monthly cost = total kWh x current rate
The difference shows your savings (or extra cost).
Strategies to Maximize Free Nights Benefits
If you choose a free nights plan, these tactics help you shift usage to free hours:
Program Your Thermostat
Set your AC to pre-cool the house to 68-70 degrees between 4-6 AM (the coolest part of the night when AC runs most efficiently). Let the temperature drift up gradually during the day, targeting 76-78 degrees during peak afternoon hours.
This “thermal banking” approach uses cheap overnight electricity to offset expensive daytime cooling. Modern smart thermostats from Nest, Ecobee, or Honeywell make this scheduling simple.
Schedule Appliances
Most modern dishwashers, washing machines, and dryers include delay-start features. Load them before bed and set them to run at 3 AM. You’ll wake up to clean dishes and dry clothes powered entirely by free electricity.
Shift EV Charging
If you have a home EV charger, program it to start at 9 PM (when free hours begin) rather than when you arrive home. Level 2 chargers add 25-30 miles of range per hour, so overnight charging easily replenishes daily driving.
Install Timer Switches
Water heater timers ($30-50 at hardware stores) let you schedule heating cycles. Set your water heater to run 4-6 AM only. The insulated tank maintains temperature for hours, providing hot water through morning showers and dishes without using daytime electricity.
Pool Pump Scheduling
Pool pumps typically need 8-12 hours of daily operation. Schedule runs from 9 PM to 6 AM (during free hours) plus a few morning hours if needed. Most pool systems tolerate nighttime-only operation without water quality issues.
The Hidden Costs and Considerations
Higher Base Rates Mean Bigger Risk
Free nights plans with 18-22 cent daytime rates leave less margin for error. If you misjudge your usage patterns, you’re paying 50% more per kWh than a standard fixed-rate plan. One hot summer month where you can’t avoid daytime AC use can erase months of savings.
Contract Lock-In
Most free nights plans require 12-24 month contracts with early termination fees. If your lifestyle changes—new job with different hours, family member moves in—you’re stuck with a plan that may no longer fit your usage pattern.
Meter Data Delays
Smart meter data that determines free vs. paid usage can lag 24-48 hours. You won’t know exactly how much free-hour usage you achieved until your bill arrives, making real-time optimization difficult.
Summer AC Challenges
Texas summers make daytime AC unavoidable. Even with thermal banking, occupied homes need cooling from noon to 9 PM—all peak hours. Free nights plans save less during June-August when daytime usage spikes regardless of scheduling efforts.
The Verdict: When Free Nights Plans Make Sense
Free nights plans clearly benefit:
- EV owners who charge at home overnight
- Night shift workers with inverted schedules
- Pool owners who can shift pump schedules
- Tech-savvy households with smart home automation
- Anyone who naturally uses 50%+ of electricity during free hours
Free nights plans typically don’t benefit:
- Work-from-home professionals
- Daytime-schedule families
- Low-usage households (under 700 kWh monthly)
- Anyone who can’t install timers or smart controls
- People who don’t want to think about when they use electricity
The break-even point: You need roughly 35-40% of your usage during free hours to match a standard fixed-rate plan. Beyond 40%, savings accumulate quickly. Below 30%, you’re paying more.
How to Decide
Before signing up for a free nights plan:
- Get your smart meter data from your TDU showing hourly usage for the past year
- Calculate your current free-hour percentage using the formula above
- Compare effective rates by calculating your monthly cost under both plan types
- Consider lifestyle stability — will your schedule change in the next 12-24 months?
- Factor in automation costs — do you need to buy timers or smart thermostats?
If the math works and you’re confident in your usage patterns, free nights plans offer genuine savings. If you’re uncertain, start with a standard fixed-rate plan and gather smart meter data. You can always switch to a free nights plan later once you know your actual usage breakdown.
Comparing Your Options
Not sure if TXU, Reliant, or another provider offers the best free nights deal? Check our provider comparisons:
- TXU vs Reliant — Head-to-head comparison including free nights options
- TXU Energy — Full provider profile
- Reliant Energy — Full provider profile
Ready to see current free nights plans available at your address? Visit ComparePower to compare rates and contract terms from multiple providers.
Key Takeaways
- Free nights plans offer free electricity from ~9 PM to 6 AM, but charge 50-100% more during daytime hours
- Average households save little ($3-5/month); night-heavy users can save $50+/month
- EV owners, night shift workers, and pool owners benefit most
- Work-from-home and daytime-schedule households usually pay more
- Calculate your break-even point before signing: you typically need 35-40%+ free-hour usage to save money
- Use smart thermostats, appliance timers, and EV charging schedules to maximize free-hour usage