You have more to benefit from a reliable energy provider than you may imagine. This article explores what you’ll want to consider when choosing an energy provider for an informed decision that benefits you in the long run.
Understand Your Energy Usage
When you understand your home’s energy usage, you’ll have an easy time choosing a new energy provider that will meet your needs.
Look at your current energy costs, and focus on finding a provider to lower the burden.
Before you review your prospective suppliers’ rates, why not review a recent statement from your current energy provider for a better idea of how much energy you use each month?
There are also several other ways to estimate how much energy you use in your home:
- You can review the Energy Guide label, which provides an estimate of the energy needed to run a given model of the appliances you own. Note: not all appliances come with an Energy Guide.
- You can use an electricity usage monitor to determine how much energy an appliance consumes.
You can also install a whole-house energy monitoring system, which works through sensors installed on the power lines. The sensors communicate wirelessly with the meters, gathering lots of data and uploading it to the web where you can access it.
You can install some electricity monitoring systems yourself, but it is usually best to employ a qualified electrician.
Another way to determine your energy usage is by using a smart meter. Placed outside the house, smart meters measure electricity usage and relay the information to your energy provider each day. It is more accurate than a traditional meter, and the information is available whenever you need it.
As a consumer, these meters benefit you by displaying up-to-date information on your energy usage, leading to more informed decisions related to your home energy usage and potential provider.
Know The Difference Between Fixed And Variable Utility Rates
Before you execute the Pennsylvania power switch, you need to understand the difference between fixed and variable utility rates. The information will help you choose the right energy provider for your needs and budget.
What’s a fixed utility rate?
When your energy supplier offers fixed-rate plans, it means that the electricity cost (kWh) remains the same for at least three billing cycles, or the contract term, whichever is higher.
The plan gives you peace of mind that your electricity costs won’t change, regardless of the market conditions. The major benefit is that it prevents your energy bill from increasing.
However, it also means that if the market price goes down, you’ll be paying more than the current market value for electricity.
There are different types of fixed-rate plans, and each has its own term and conditions. Make sure you read and understand the fine print before you subscribe to any fixed-rate plan.
What’s a variable rate plan?
When your energy provider offers a variable rate plan, it means that your rate will fluctuate according to the market conditions. The rate can change weekly, monthly, or even hourly.
The major advantage of this plan is that your bill will go down as the market price falls. The disadvantage is that you may experience a significant rise in your bill if the electricity cost per kWh hour increases dramatically.
While you can save a lot of money over time with a variable rate plan, the uncertainty can make it challenging to budget for your monthly expenditure.
Save Energy and Money with These Tips
Once you find the right energy provider, consider implementing the following tips to save energy and cash:
Replace your light bulbs
The simplest way to save energy and money is to replace your traditional incandescent bulbs with energy-efficient alternatives.
LED bulbs, compact fluorescent lights (CFLs), and halogen incandescent bulbs use anywhere between 25% and 80% less energy compared to traditional counterparts.
Energy-efficient bulbs also last at least three times longer. You’ll not only save money on energy bills but also on bulb replacements.
Invest in a smart thermostat
Smart thermostats make your heating and cooling more efficient by only warming or cooling the rooms you specify. These thermostats learn how long it takes to warm or cool your home, ensuring it maintains the right temperature at the appropriate time.
With a smart thermostat, you can save about $100 a year on energy costs.
Invest in Energy Star appliances
Look for appliances and devices that have the ENERGY STAR label. These options adhere to strict energy-efficiency guidelines that will lower your utility bills and benefit the environment.
ENERGY STAR appliances use at least 25% less energy compared to their traditional counterparts.
