Did you know that most electric utilities charge you at three different rates?
Most people don’t realize this, however it is a fact.
Most utilities set their rates based on what is known as tiers. A tier is a predetermined amount of electricity priced at a certain rate.
For example my service provider, Georgia Power, sets the first tier from zero to 650 kWh. The second tier is from 650 – 1000 kWh and the third tier is everything over 1000 kWh.
Once a customer’s electrical consumption has exceeded 650 kWh the rate goes to the second tier pricing level. As you might have expected the second rate is higher than the first, at least in the summer months when electrical cooling is the main source of energy consumption.
Georgia Power’s pricing schedule can be accessed here.
During winter months the rate is front loaded so the most expensive rate is the first tier. The rates decrease as the tiers are breached during winter months.
Installing an energy monitor for your home can help you manage your energy bill more efficiently.
Suppose it is near the end of the month and you decide to wash a load of clothes. Let’s say that Saturday is the last day of the month. By consulting your in-home monitor you see that your electrical consumption for the month is at 645 kWh. If you know that your dryer draws around 6kw/hr you may decide to put off doing your laundry until the next day so that you do not push your usage into the second tier of pricing, thereby keeping your consumption below the 650 kWh threshold.
This is perhaps an oversimplified example, however having a real-time way to monitor energy usage does tend to change behavior and taking control of the energy you use is the first step to energy independence.
Metro Solar can help you save money on your utility bills with an home energy monitoring system.
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