Exploring Renewable Energy Options in Fixed Rate Electric Plans
Energy suppliers are constantly offering new and innovative energy solutions. They also have plans with different contract terms that cater to various customer profiles and budgets.
Some energy providers offer green plans that give customers 100% renewable electricity from sustainable sources. These are ideal for individuals who want to make a difference in the environment.
What is Fixed Rate Electricity?
If you live in a deregulated state, you can choose the best supplier and plan for your home. One of the first choices you’ll need is whether to go with a fixed or variable rate plan.
A fixed-rate energy plan keeps your price per kWh steady throughout your contract. This provides certainty and helps you easily budget your electricity costs.
Variable-rate plans have a rate that fluctuates based on market conditions and other factors. This can mean your prices may drop when market prices are low, or it can also mean you’ll be paying more than if you had chosen a fixed-rate plan.
The key to deciding which type of plan is right for you is understanding how much your family uses and where you live. For example, if you live in an apartment or a small house, you’ll use less energy than a large family and may be less affected by market changes.
On the other hand, if you keep an eye on market trends and track energy pricing, you can save with a variable-rate plan. But be careful because long-term variable rate contracts can have early termination fees. Ask your supplier or read your contract for more details.
Reduce Your Carbon Footprint
When you choose a fixed-rate electric plan, your price per kilowatt-hour (kWh) will remain the same for your contract term. This makes budgeting easier and protects you from unexpected spikes in energy prices.
If you’re looking to make an eco-friendly electricity choice, you can find a plan with a renewable energy option. Electric company Abilene, TX, balance the clean energy they buy for customers with credits from renewable sources that offsets their use of fossil fuels. This helps them reduce carbon emissions, making a greener planet.
Some renewable energy plans also have other features to help you conserve and reduce energy bills. For example, some offer time-of-use pricing rates that allow you to save by shifting your usage to times when demand is lower. This can be a good way to reduce your energy bills and help reduce the need for more power plants.
To know more about what kind of renewable energy a particular provider uses, check its Electricity Facts Label (EFL). Look for the words “certified carbon neutral” or similar on the EFL. This means that the REP has purchased enough RECs to offset the amount of fossil fuels it uses to generate power for its customers.
Renewable energy can save you money in the long run by decreasing your dependence on fossil fuels and helping reduce carbon emissions. Renewable sources, such as wind, solar, and hydroelectric, generate electricity without depleting natural resources.
Fixed-rate plans can help you save by locking in a specific price per kilowatt-hour for the duration of your contract. For example, if you sign up for a plan with a fixed rate of 9 cents per kWh, your supplier will guarantee this rate for the entire length of your contract, regardless of the market prices.
However, you will need to consider the length of your contract, as many fixed-rate contracts include early termination fees. Comparing rates and terms is important when shopping for a new electricity provider. Look at the delivery and supply rates, contract lengths, renewable options, and other fees to find the best plan for your needs and budget.
Get a Better Deal
With a fixed-rate electric plan, you can lock in per-kilowatt-hour rates that don’t change for the duration of your contract. This protects you from the higher costs during peak seasons when energy demand is high and your provider has to pay more to buy enough power for your needs. Generally, fixed-rate plans are cheaper than month-to-month options. This is because providers must guess how much electricity to purchase to service customers with month-to-month contracts, and they often charge more for these plans to cover their risk.
With the right timing, you can save even more by switching to a fixed-rate plan when electricity prices are low. It’s best to shop around for a new plan during the summertime, but you can also find deals in spring, mid-March through June, and from October through November. Make sure to choose a plan with a contract shorter than your current one since some providers will automatically roll you to a variable-rate plan when your contract ends.
Increase Your Home’s Value
In addition to comparing rates and contract terms, check the green energy options available with each provider. Some offer buyback programs, where you can earn credits toward lower bills if your solar or wind turbine systems produce more electricity than you need. Other green energy options include renewable energy certificates (RECs), which represent the environmental benefits of renewable electricity and can be traded separately from it.
Many electricity providers offer fixed-rate plans with terms ranging from 12-36 months. Plans with short contract terms can help people who might need to switch plans before the end of their term, such as renters who are planning on moving soon. However, those with longer contracts should understand that they are taking a risk by locking in prices for a long period.
Enter your ZIP code to view the best deals on green electricity for your home, and then compare rates to find the cheapest option. You can also explore prepaid plans, which allow you to pay for electricity upfront and avoid credit checks and deposits.