Most of us don’t think much about our electricity providers, outside of the monthly bills we pay to power our homes and businesses. For many Americans, this has become routine: We think of ourselves as locked into a single power company, which charges a single rate and offers a single plan.
But millions of Americans have the power to choose their power providers — to shop for their electricity. If you live in a state with a deregulated energy market, then there’s a good chance you have options when it comes to your electricity.
For any other product and service, people spend time and energy comparing different options to find the best and most cost-effective choice. And although many Americans are unaware of it, the same is true for energy.
We’ll walk you through how to go about shopping for electricity, and most importantly, why you should. All of that money you save by finding the best light company near you can go towards important projects — or even a fun vacation!
How to Shop For Electricity
Before we get to the fun part of all the better ways you could be spending your hard-earned money, we first have to learn how to save it.
First off, to shop for electricity, your home or business will need to be located in a deregulated energy market. This varies state by state — New Jersey, Pennsylvania, and Oregon all have deregulated markets, as do a number of other states.
Texas is one of the biggest deregulated energy markets, and there are dozens of retail electricity providers (REPs) competing for the business of home and business owners in the Lone Star State.
One good way to start shopping for electricity is to ask around. Ask your friends or neighbors who their provider is, and if they’re happy with their rates, plan, and service. The internet is another great resource for doing comparative shopping, just like you would if you were looking for a pair of new boots!
But if you live in Texas, there’s a simple and easy way to compare all of the different power companies in your service area. If you visit the website PowertoChoose.org and enter in your zip code, you’ll be provided with a list of different REPs in your area, along with their electricity rates and the different plans they offer.
If you have any questions about the PowertoChoose.org website, check out this guide — it has the answers to any questions you might have about this step in the process of shopping for your electricity.
Whichever deregulated market you’re in, you should be comparing three different things as you shop for electricity: the rate, the different plans, and the reputation of the electric companies you’re looking at. Let’s quickly break those down:
Rates
Rates are simple to compare: The lower the price per kilowatt-hour, the lower your monthly power bill is going to be. You can learn more about kilowatts, but for our shopping purposes, it’s enough to know that you’re looking for low rates.
Plans
Comparing plans is a bit more complicated than comparing rates, because there are a variety of different options out there. Some companies will offer green energy plans or plans that offer free electricity on nights or weekends (all great perks!).
You’ll also likely see fixed rate plans and variable rate plans. A fixed rate plan offers a single rate per kilowatt-hour, and is the easiest to understand and budget for. You’ll be charged a flat rate throughout the month, no matter when or how much electricity you use.
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Variable rate plans charge a different rate per kilowatt-hour depending on market conditions. At times when demand spikes (like an especially hot summer day or a freezing winter night), it’s likely that your electricity rate will rise. However, if demand is down (or supply is up), you might end up paying less during that time period than you would if you had a fixed rate.
You’ll have to decide for yourself which of these plans works best for your family or business.
Reputation
As with any service, the reputation of the power companies you’re looking at is an important part of the shopping experience.
Asking around for recommendations is a good way to get a handle on this; internet reviews can be a good resource, as well. Pay attention to how long the different companies you’re comparing have been operating. If they’ve been around for a while (like Tara Energy, which has been serving customers for more than 20 years), there’s a good chance they’re doing something right.
Here’s Why You Should Shop for Electricity
Now that you’ve figured out how to shop for electricity, let’s take a look at why it’s so important to follow through and make a smart switch.
Energy savings are important. That may sound obvious, but it bears repeating: It’s important to save money on our energy bills. Power is something most of us can’t go without, and we need to pay for it each and every month.
The fact that we pay for power monthly is what makes energy savings so important. Think about it this way: If you can save even $50 per month on your energy bill, that adds up to a whopping $600 every year. In a decade that adds up to $6,000!
Most of the time when we’re doing some comparison shopping, we’re likely only going to save a few bucks, or maybe a couple hundred dollars if it’s a big-ticket appliance. The potential savings involved in shopping for your power can dwarf those other savings.
Here’s What You Can Spend Your Energy Savings On
Now that we’ve gone over what shopping for power is, how to do it, and why you should be doing it, it’s time for the fun part — all the things you could be spending your energy savings on.
Pay Other Bills
This isn’t flashy, but that doesn’t mean it’s not important. We all have plenty of bills to pay outside of the monthly power bill — car bills, cable bills, high-speed internet, rent, taxes, the list goes on.
If you’re behind on any of these other bills, then this is a great place to spend money you’ve saved by shopping for your electricity. And if you’re all caught up on these bills, you could still earmark energy savings for a rainy-day fund that could help you pay these bills if something unforeseen were to happen.
Reduce Your Debts
No one wants to be in debt, but let’s face it: Life happens. If you have credit card debt, student loan debt, or a mortgage to pay off, then monthly energy savings earned by shopping around for electricity can really help lighten your load.
If you can find a better power provider that can offer you better service and lower rates, then you can start working on reducing your debts, and start building up savings.
Upgrade Your House
This is a fun one! Energy savings are great for home improvement projects for a number of reasons. First, because your energy savings are going to show up in your household budget every month, they’re a great way to fund projects around the house that themselves may take multiple months.
But the real advantage here comes if you can upgrade your house in a way that makes it more energy-efficient. If you’re renovating a bedroom or bathroom, consider improving its insulation to help reduce drafts. If you’ve been thinking of redoing the laundry room, why not look at efficient Energy Star washers and dryers?
By upgrading your house in a way that also makes your home more energy-efficient, you’re growing those energy savings that you’ll see every single month in your power bill. In this way, savings create more savings, which create more … well, you get the picture!
Buy a New Car
Who among us would say no to a new car? Well, if you’re able to free up money in your monthly budget by shopping for electricity, then you can put those savings towards a payment for one.
And if it suits your needs, consider upgrading to a vehicle with better gas mileage. Just like with the house upgrades, using money you saved to upgrade your car to a model with a higher MPG is a great way to continue to save money — in this case, in how much you spend at the pump.
Treat Yourself
Last but by no means least, consider spending some of the money you save from shopping for electricity on treating yourself.
If you’ve had something on your wish list for multiple birthdays but you still don’t have it, or if you’ve been waiting for that special item to go on sale but it never seems to, or those flights to that resort town never seem to go on super-sale, then now might finally be the time to spring for something that will put a smile on your face.
Energy savings are a great way to treat ourselves without going over our monthly budgets. Plus, if you did the work to shop for electricity and find the perfect new electric company near you, then wouldn’t you say you deserve it?
Shopping for Electricity Is a Win/Win
You may not have known what shopping for electricity was before now, let alone how to do it. There’s no shame in that, either — many of us are unaware that we have choices when it comes to our power.
But now you can also see the many, many reasons why you should be shopping for your electricity. Companies like Tara Energy have decades of experience competing for the business of their customers, and these kinds of power companies work hard to offer customers affordable rates, innovative plans, and top-notch customer service.
Tara Moves With You
Moving? Take your Tara Energy services with you at no additional cost.
And we only scratched the surface on all of the different ways you could use your potential energy savings — you probably have a list of ideas in your head right now. So take the time to check to see if you have options, and if you find that you do, start shopping — and saving — today.
For more information on how you can save by switching power providers, be sure to check out the Tara Energy blog.
Brought to you by taranergy.com
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