Cost Reduction Opportunities
Reaching net zero will require significant investments, but it also creates many opportunities to save money along the way. Smart planning around energy use can lower utility bills, reduce the need for costly infrastructure upgrades, and make the financial case for further sustainability projects. Two of the most effective approaches for senior living communities are time-of-use billing and peak energy shaving.
Time-of-Use (TOU) Billing
Traditionally, electricity has been billed at a flat rate regardless of when it is used. Increasingly, utilities are moving to time-of-use pricing, where electricity costs more during high-demand periods (typically late afternoon and early evening) and less during off-peak hours (such as overnight).
TOU rates create both a financial and environmental opportunity. By shifting high-energy tasks like laundry, pool pumping, or charging electric vehicles into off-peak hours, communities can reduce their bills and help the grid avoid reliance on the most polluting “peaker plants.”
For example, in Kansas City, one utility’s TOU plan charges just $0.02 per kilowatt-hour during off-peak periods compared to $0.27 during peak hours. Communities that can shift even a portion of their demand stand to save significantly. And because retirement campuses often control large, schedulable loads, they are particularly well-suited to take advantage of these programs.
If your utility does not yet offer TOU pricing, it is worth asking when such programs will be available. The rollout of digital meters and smart grid technology means TOU rates are likely to expand widely in the coming years.
Managing Peak Energy Use
One of the most important aspects of electrification is learning how to manage when electricity is used. Electric grids must always balance supply and demand. When demand spikes—typically in the late afternoon or early evening—utilities often rely on “peaker plants,” which are expensive, inefficient, and highly polluting. Reducing demand during these peak times helps the grid, saves money, and lowers emissions.
This practice, known as peak energy shaving or demand management, can be especially effective in senior living communities. Simple measures such as shifting laundry, pool pumps, or other non-essential operations outside of peak hours can make a measurable difference. Over time, these practices also prepare the community for more advanced tools like time-of-use rates or building management systems.
SSAFE has documented how residents and administrators can work together to achieve real savings:
- Video: Peak Usage Alert Part 2 – Results Update
- Case Study: Collington Peak Energy Use Pilot
By adopting similar practices, your community can reduce its reliance on the dirtiest generators, lower bills, and build a culture of shared responsibility for energy use.
