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TexasShopping basicsChecked Oct 13, 2026

Are free nights electricity plans worth it in Texas?

Free nights plans make your energy charge $0 for part of the night. But you still pay for delivery on every kWh, and daytime power costs more to make up for it. Here’s how they work, plus a calculator that finds your break-even point.

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Published 6 min readBy The Day Company review team · How we verify figures
$0 energyOnly in the free hours
6.87¢ per kWhOncor delivery, still billed at night
Short answer

No. A free nights plan only waives the energy charge during set hours overnight. You still pay your utility’s delivery charge on every kWh, about 6.87¢ in Oncor’s area, and daytime energy costs more. It saves money only if a big share of your use lands in the free hours, like charging an electric car overnight.

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October 1 and 4, 2026: CenterPoint and Oncor raised their delivery charges. You pay them on every kWh, even in free hours, so a “free” night kWh in their areas now costs about 6.5¢ to 6.9¢.
Is a free nights plan right for you?

Only if a big share of your use can land in the free hours.

  1. Find the plan’s exact free hours on its fact label.
  2. Estimate how much of your power you use in those hours.
  3. Run both plans through the calculator before you sign.
Find my break-even point →
$0Energy charge in the free hours
6.87¢Oncor delivery per kWh, billed even at night
24/7Hours your delivery charge runs
79%Night use needed to break even in our example

Built on public data from TXU’s free nights plan terms, Oncor’s tariff in PUCT Docket 59249 and utility delivery charges printed on Texas fact labels. Checked October 13, 2026.

01 · How it works

How do free nights plans work?

During a set window, usually overnight, your energy charge drops to $0. The rest of your bill keeps running, and the daytime energy charge is higher to make up for the free hours.

One day on a free nights plan (example window)
Midnight6 a.m.Noon6 p.m. 9 hrs free energy 9 p.m. to 6 a.m.
  • Free hours: the energy charge is $09 hrs
  • Hot afternoons, billed at the higher daytime rate3–7 p.m.
  • Other paid hours11 hrs
  • Delivery charge (dashed ring), on every kWh24 hrs

The 9 p.m. to 6 a.m. window is an example. Each plan sets its own free hours, so check the fact label.

$0The energy charge, during the free hours only
24/7Your utility’s delivery charge, on every kWh you use
HigherThe energy charge in paid hours, to cover the free ones

TXU, which sells a free nights plan, says it plainly on its plan page: “TDU and other billed charges apply normally at all times.” TDU means your delivery utility, like Oncor or CenterPoint. Its charge never takes a night off.

What a “free” kWh really costs: Oncor’s delivery charge is 6.8673¢ per kWh from October 4, 2026, so a free night kWh still costs you almost 7¢ in its area. In CenterPoint’s Houston area, it’s 6.5333¢.

Next: find your own break-even point →

02 · The calculator

Will a free nights plan save you money?

Set your usage, your utility and how much of your power you use in the free hours. Then type in the two plans you’re comparing.

Not sure? Most homes use more power in the afternoon and evening than overnight. An electric car charged overnight pushes this number up.

Free nights plan
Plain fixed plan
Free nights plan$242.8324.3¢ per kWh
Plain fixed plan$123.8312.4¢ per kWh

The plain plan saves you $119.00 this month.

Pick the free nights plan at this usage and you’d pay about $1,428 more a year.

You Break-even

To break even, you’d need about 79% of your use in the free hours.

The two plans are examples. Type in the energy charge and base charge from each plan’s fact label. Your utility’s delivery charges from October 2026 are built in. Prices are before taxes. Nothing you type is saved or sent anywhere.

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Find your real night share: Smart Meter Texas, a free site run by the delivery utilities, shows your use in 15-minute blocks. Add up the blocks in the plan’s free hours, then divide by your total for the month. Not signed up yet? Our Smart Meter Texas guide covers the 5-minute sign-up.

Next: who actually comes out ahead →

03 · Who saves

Who actually saves with free nights?

Homes that can move a big share of their power into the free hours. In our example, that share has to reach about 79% before the free nights plan wins.

Monthly cost at 1,000 kWh in Oncor’s area, by share of use in the free hours
$0 $100 $200 $300 0% 25% 50% 75% 100% Share of your use in the free hours Break-even: 79% Free nights plan: $315.73 Plain plan: $123.83 $72.73

Example plans: free nights at 24.3¢ per daytime kWh, plain at 5.11¢ per kWh, no base charges, plus Oncor delivery of $72.73 a month from October 4, 2026. The cost axis starts at zero. The green area is where the free nights plan wins.

Likely to saveLots of use at night
  • You charge an electric car at home overnight
  • You run laundry, dishes and the pool pump on timers at night
  • You’re out of the house most afternoons
Likely to pay moreLots of use by day
  • You work from home with the AC running
  • Your biggest use comes on hot afternoons
  • You can’t move big chores into the free hours

An electric car is the big one. For example, 1,000 miles a month in a car that goes 3.5 miles per kWh takes about 286 kWh, and all of it can land in the free hours if you charge overnight.

Next: the catch hiding in the daytime rate →

04 · The catch

What’s the catch with free nights plans?

The free hours aren’t a gift. The daytime price pays for them.

  1. 1
    The daytime rate is higher

    The company stil buys power for your nights, so it charges more for the hours you pay for. Put the plan’s daytime energy charge next to a plain plan’s energy charge.

  2. 2
    Delivery never stops

    Your utility’s delivery charge applies to every kWh, day and night. That’s why a free night kWh in Oncor’s area still costs almost 7¢.

  3. 3
    The hours don’t move

    Each plan sets its own free window, and it stays put in a heat wave. Read the fact label for the exact hours before you sign.

Read the fine print. A fact label’s average prices assume a usage pattern, so your real bill can land far from them. TXU’s free nights plan, for one, has a cancel fee if you leave after its 60-day guarantee. See how to read a facts label.
Keep readingRead any fact label in 2 minutes, free hours included
05 · Free weekends

Do free weekends plans work the same way?

Yes. The energy charge is free on weekends, delivery is still billed, and weekday energy costs more.

They suit homes that sit empty on weekdays and stay busy on weekends. Some plans offer free nights and free weekends together, and the same break-even math applies. To test one, set the calculator’s free-hours share to the part of your use that falls on weekends.

06 · Quick answers

Free nights plans, answered

Is free nights electricity really free in Texas?

No. Only the energy charge is free during the set hours. You still pay your utility’s delivery charges on every kWh, day and night, plus any monthly base charge. TXU’s own plan terms say delivery and other billed charges apply at all times.

Are free nights plans worth it?

Only if you can move a large share of your use into the free hours. In our example, a home would need about 79% of its use at night to break even with a plain 5.11¢ plan. Electric car owners who charge overnight are the most likely to save.

What hours are free on free nights plans?

It depends on the plan. Most free windows run overnight, from late evening to early morning. Read the plan’s fact label for the exact hours before you sign.

Why is the daytime rate so high on free nights plans?

Because the daytime hours pay for the free nights. The company still has to buy power for your night use, so it charges more for the hours you pay for.

How much does a free night kWh cost in Dallas?

About 6.87¢. That’s Oncor’s delivery charge per kWh from October 4, 2026, and it applies even during free hours. In Houston, CenterPoint’s charge is about 6.53¢.

Are free nights plans good for electric cars?

Often, yes. Charging overnight puts a lot of use into the free hours, which is exactly how these plans save money. Add your car’s charging to your monthly kWh in the calculator, then raise the free-hours share.

Do free weekends plans work the same way?

Yes. The energy charge is free on weekends, delivery is still billed, and weekday energy costs more. They suit homes that are empty on weekdays and busy on weekends.

How do I know how much power I use at night?

Check Smart Meter Texas, a free site run by the delivery utilities. It shows your use in 15-minute blocks. Add up the blocks inside a plan’s free hours and divide by your monthly total. That share is what the calculator needs.

Is a free nights plan better than a fixed-rate plan?

For most homes, no. A plain fixed plan with a low energy charge usually costs less, because most homes use more power in the afternoon and evening than overnight. See fixed or variable rate?

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Sources

Sources and updates

Sources (7)
Changelog · last updated October 16, 2026 · 3 updates
  • October 16, 2026: Linked our new Smart Meter Texas guide and our list of every Texas electricity company. No figures changed. We also added our new city guides, four new company reviews and the Smart Meter Texas guide to the guide map.
  • October 13, 2026: Moved to theday.company/tx/free-nights-electricity-plans; the old address forwards here. Added a quick decision box, a date alert and a yearly money-at-stake line in the calculator and next-step links. Wrote this guide’s own content: how free nights plans work, a 24-hour chart, the break-even calculator and chart, who saves, the catch and free weekends, plus the full list of Texas guides.
  • October 4, 2026: Page published with its title, questions and calculator code. A setup error showed our fixed-vs-variable guide here instead of this guide.

How to cite this page: The Day Company, "Are free nights electricity plans worth it in Texas?", updated October 16, 2026, https://theday.company/tx/free-nights-electricity-plans.

This guide explains how plan types work; it isn’t financial advice. The calculator’s two plans are examples. Check each plan’s current fact label before you sign. The Day Company is not affiliated with any electric company named here.