Laundromats are energy-intensive by nature through the use of electricity, water and gas. Washers, dryers, hot water systems, ventilation, lighting and sometimes air conditioning all add up fast. With electricity prices under constant pressure, many laundromat owners are looking for practical ways to reduce operating costs. They want to do this without compromising customer experience.
One of the most overlooked opportunities is understanding and actively managing time-of-use (TOU) tariffs. TOU pricing changes the cost of electricity depending on the time of day. If your site runs equipment all day on autopilot, your power bill can quietly inflate during peak periods. If you understand your load profile and have the right energy metering and monitoring in place, TOU tariffs can become a lever you can pull. Rather than just a penalty you absorb.
This is where smart energy metering for laundromats becomes a serious advantage. Not just a tech upgrade.
What Are Time-of-Use Tariffs?
A TOU tariff is a pricing structure where electricity rates vary across the day and often by season. Retailers and networks use TOU to encourage consumption when the grid is under less demand. While tariff structures differ by state and retailer, they usually follow a pattern.
Peak periods have the highest rates, often late afternoon to evening on weekdays. Shoulder periods have mid-range rates, typically surrounding peak periods. Off-peak periods have the lowest rates, often overnight and sometimes mid-day.
If your laundromat is running banks of dryers operated by electricity, energy costs during peak windows means you’re paying top dollar. You’re paying for your most power-hungry equipment at the most expensive times.
Why TOU Tariffs Matter Specifically for Laundromats
Laundromats have a distinctive electricity profile. Strong spikes, frequent cycling and heavy reliance on resistive heating in dryers or hot water systems. These loads can dominate your bill.
A Predictable Daily Rhythm
Customer traffic tends to follow patterns. Morning rush, mid-day steadiness and after-work peaks. If your biggest usage aligns with peak tariff windows, your costs rise, even if total kWh stays the same.
High Cost Loads That You Can Influence
Electrical dryers and hot water systems are big-ticket energy users. Small operational changes can make a noticeable difference. Like managing how many dryers run simultaneously during peak periods.
Hidden Inefficiencies You Can't Spot from a Total Bill
A standard bill tells you what you spent, not why. Without clear visibility, you can’t tell whether the cost problem is peak usage, equipment faults or poor power quality. Or simply the wrong tariff.
This is why smart energy metering for laundromats is so valuable. It turns energy into something measurable, trackable and optimisable.
Common TOU Traps and How Laundromats Fall Into Them
TOU tariffs can deliver savings but only when your operating reality matches your tariff assumptions. A few common traps catch laundromats out.
Peak-Period Dryer Surges
Electrical dryers often run hardest when customers arrive after work. Right inside peak pricing in many areas. If multiple customers start cycles around the same time, demand climbs quickly.
Always-On Hot Water Systems
If your electrical hot water system or booster is working hardest during peak windows, it can quietly push up costs. Especially if thermostats or controls aren’t tuned.
Tariff Mismatch After Equipment Upgrades
Adding newer dryers, larger machines or more equipment may shift your load profile. Many businesses stay on the same tariff structure for years. Even after the site changes.
No Visibility Into When the Spend Happens
You can’t manage what you can’t see. Without interval data and clear sub-metering where needed, peak versus off-peak becomes guesswork.
Strategies to Benefit from TOU Tariffs Without Disrupting Customers
Most laundromat owners want savings that don’t involve annoying signage, complicated rules or turning customers away. The best TOU strategies are subtle. They improve operations and profitability in the background.
Shift What You Can, Stabilise What You Can't
Some loads are flexible. Hot water recovery cycles, certain ventilation schedules and non-customer-facing tasks. Some are customer-driven, like dryer starts. The goal is to move controllable consumption away from peak and reduce spikes during peak.
Use Pricing Thoughtfully
Some laundromats introduce small incentives at off-peak times. Such as modest discounts or loyalty rewards during quieter windows. The key is keeping it simple and aligning it with customer convenience.
Reduce Peak Spikes, Not Just Total kWh
Lowering peak demand can reduce cost exposure under TOU. It can also support future planning if demand charges ever apply or if your retailer’s structure changes.
Monitor for Equipment Issues Early
A stuck contactor, failing motor, blocked lint path or inefficient heating element can drive longer runtimes. Often during expensive periods. Monitoring helps you catch these problems before they show up as mystery bill increases.
All of these strategies become easier when you have accurate, timely insight. Which brings us back to metering.
What to Measure to Manage TOU Costs
For TOU optimisation, the most helpful questions are time-based. When does the site consume the most energy? Which circuits or assets drive the peaks? How much usage falls into peak versus off-peak windows? Are there unusual patterns that suggest a fault or drift in performance?
A robust metering setup can give you interval data and the operational context to act on it. In practice, smart energy metering for laundromats lets you move from reactive bill-paying to proactive energy management.
How SATEC Provides the Metering Solution for Laundromats
If you want to optimise TOU tariffs, you need more than a generic meter reading. You need a metering and monitoring approach that fits the realities of a busy commercial site. Limited switchboard space, retrofit constraints and the need for accurate, reliable data.
SATEC’s energy metering and power monitoring solutions are built for commercial and industrial environments where precision and visibility matter. For laundromats, this means you can track energy usage patterns across the day. You can identify peak-period spikes and validate the impact of operational changes without relying on guesswork.
SATEC’s smart meters and power quality monitoring capability can support laundromats by:
- Enabling accurate measurement of energy consumption with high-quality metering hardware.
- Better visibility into load behaviour so you can see how peak and off-peak usage really plays out.
- Power quality insight to help identify issues that can affect equipment performance and reliability.
- A foundation for ongoing optimisation, especially when paired with software for monitoring and reporting.
When you combine metering data with Expertpower, you can bring that information together in a way that supports clearer reporting and decision-making. Instead of treating TOU tariffs as a fixed cost, you can use your own data to understand the commercial impact of different operating patterns. You can identify where changes will deliver real savings.
In short, SATEC’s products help turn TOU tariffs into something you can manage confidently. Supported by data, not assumptions.
Turning TOU Tariffs Into a Competitive Advantage
TOU pricing is not going away. In many areas, it’s becoming more common as networks try to manage demand and integrate more renewable generation. Laundromats that understand their usage profile and take steps to manage it can protect margins and keep pricing competitive.
Start with visibility. Once you can see when and how your laundromat uses electricity, TOU optimisation becomes practical. Shift what’s flexible, smooth what’s spiky and fix what’s inefficient. Over time, even small changes can compound into meaningful savings.
For laundromat operators who want a data-driven way to reduce costs, smart energy metering for laundromats is one of the most effective first steps you can take.
Talk to our team about your smart energy metering needs today.
FAQs - Time-of-Use Tariffs for Laundromats
What is a time-of-use (TOU) tariff?
A TOU tariff charges different electricity rates at different times of day (peak, shoulder, off-peak), so running equipment during peak periods usually costs more.
How can a laundromat reduce costs under TOU pricing without frustrating customers?
Focus on shifting controllable loads (like hot water recovery or ventilation schedules) and reducing peak-time spikes rather than restricting customer use.
Why is smart energy metering for laundromats helpful with TOU tariffs?
It shows exactly when your energy use (and costs) occur, helping you identify peak-period drivers and measure whether changes are actually saving money.
How can SATEC help a laundromat manage TOU tariffs?
SATEC’s metering and monitoring solutions provide reliable usage visibility and power insights and can be paired with Expertpower to support clearer reporting and ongoing optimisation.
