While many Americans believe they have to deal with surcharges imposed by their electric companies, there are many financial benefits to switching companies, including rates that are much lower than you might imagine.
There are plenty of tools available online, like the ElectricityRates Calculator, which will show you low fixed-rate plans and 100 percent renewable energy plans from leading providers based on your zip code.
Some of the cheaper options come via 100% renewable energy plans, where all electricity use is offset by green energy generation.
However, plenty of other companies offer sign-on bonuses and rewards programs regardless of the availability of renewable energy. You can also get a discount on a home energy audit or a bundle deal with phone providers and repair services.
Direct Energy, based in Texas, offers a discount to everyone in the military. You can also get special rewards if you refer your friends or family.
Another option is Ambit Energy, which offers travel rewards based on your kilowatt-hour consumption or if you refer others to the program. Once you sign up, you can apply this to golf trips, cruises, holiday travel and even spa treatments.
Others, like First Choice Power, offer direct payments you can apply to your next bill. When you refer others to your electric company, you’ll get an automatic $25 credit.
Alex Penny, financial literacy instructor at the University of Tennessee at Martin, said: Newsweek There is one rule you should absolutely follow when switching energy providers, and that is about long-term costs.
Ashley Cooper
“Do some math on the long-term costs of the transition,” Binney said. “In deregulated energy markets, it is very common to see ‘pay-to-switch’ promotions to save some money in the first month of service or offer loyalty rewards instead of the company that was your original provider.”
While too many deals may initially shave several dollars off your bill, spending significantly more over time will hurt you more in the long run.
“You have to remember that this is a bill you’re going to have forever, and a few dollars saved doesn’t equate to a lot if you’re spending a lot more over the years of service,” Penny added.
Choosing to contact your current provider and share your frustrations about costs and your desire to switch may actually result in lower rates than choosing one of the other promotions. However, keep in mind that electricity prices vary widely based on your location, weather, and underlying supply and demand.
A solar energy study conducted by EcoWatch published in 2022 found that 79 percent of homeowners were financially stressed by their electricity bills.
“Oftentimes, companies will make attempts at retention, which may mean eliminating new charges from your bill that they think will be required moving forward,” Penny said. Newsweek. “Ultimately, these companies are supposed to work for you, not for you. Remember that when trying to find the cheapest bill for your energy needs.”
In all, the Department of Energy estimates that the average American family spends $1,300 annually on their energy bills.
Uncommon knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
