Whether saving for retirement, education, or a vacation, making savings a regular habit is important. To do so, you’ll need to understand your cash flow — income minus expenses. Increasing your savings may involve some frugality, but there’s a limit to how much you can cut from your budget.
Look for a Better Rate
You need to know many terms in deregulated energy markets to understand your options. There are types of plans, rate structures, payment options, and more. To make the best choice for your family, it’s important to step back and decide what you want from an electricity plan.
For example, you should ensure predictability with a fixed-rate plan. Or you may prefer the flexibility of a variable rate plan. Or you can help reduce your carbon footprint with a plan that supports renewable energy. Then, other factors can affect your decision, such as whether you want a plan with access to new technology or to avoid a credit check with a prepaid plan. But many homeowners still wonder what is a bill credit energy plan.
Many experts mentioned that if you opt for a bill credit plan, your monthly rate structure will be determined by how much you use. The plan details will show you the average price per kilowatt-hour for the usage levels outlined in the agreement section. The prices include the base charge, utility charges, and any bill credits noted as bill credits on the EFL.
Look for a Time-of-Use Plan
When many customers use energy simultaneously, it puts pressure on the power grid. Some energy providers offer plans that encourage you to reduce your usage during these high-demand, or “peak,” hours. These are time-of-use, EZ-3, and electric vehicle (EV) price plans.
With a time-of-use plan, your rates align with the cost of producing electricity. Energy is cheaper at night when solar production is highest and more expensive during the day as people return home to turn on appliances. This shift in energy use also helps the greater community by reducing peak load on the grid, making it more reliable during those critical moments.
A tiered rate plan charges you different rates based on your energy. Sense monitors your energy usage and can alert you when you are trending toward higher tiers. If you are on a budget plan, there is an automatic average of your bills over three months to help make your bill more predictable. You can save even more by focusing your energy savings efforts in the smartest way possible, like running large appliances and heating or cooling during off-peak hours.
Look for a Reduction
The easiest way to save money is to set a savings goal and stick with it. Plenty of budget apps are out there to help you keep track of your spending and mark progress toward your savings goals.
Taking small steps to cut unnecessary expenses can add to big savings over time. Consider plugging any leaks in your home, using smart power strips, and switching to energy-efficient appliances to reduce the amount of electricity you use. These changes can help you save hundreds of dollars annually on your electric bill. If you’re on a time-of-use (TOU) plan, try running your large appliances like the dishwasher and washing machine during off-peak hours. TOU plans to increase rates during peak hours, and decreasing your usage during these times can help you save money on your electricity bill.
Another great way to save money is by participating in Energy Savings Events. On select summer days, you can earn bill credits for reducing or shifting your energy usage before or after 2 p.m. You’ll receive a credit for every kilowatt you save or shift away from peak hours. Learn more about how to participate in Energy Savings Events and start earning. You can also use a tool to see how much you could earn on an event day.
Look for a Discount
It’s always a good idea to look for ways to save money on electricity. Small changes like plugging energy leaks, using smart power strips, and registering for income-driven repayment can help you reduce your overall bill size. You can also take bigger actions to cut costs, like installing solar, taking advantage of federal and local programs, and making your home more energy efficient.
To find the best plan for your situation, enter your usage levels on a website. Most websties show you a detailed price breakdown for each available plan, including bill credit plans. You can also compare prices based on your highest and lowest usage to ensure you get the best deal.
This might be the right plan if you’re a night owl who tends to shift electricity usage to off-peak hours on hot days. However, if you’re consistently above 1,000 kWh, this plan will overpay for your energy and leave you paying more than you need to.