I’ve been researching electricity usage, reviewing electric bills, and reading up on the cost per kilowatt hour nationally and state-wide for a current project. I’m always on the hunt for ways to lower my electric bills and have been writing about this online recently. Then a light bulb went off (it’s okay, it was solar powered). The problem needs to be tackled in at least two ways.

Light Bulb by Caveman 92223

Light Bulb by Caveman 92223

First, rate – the cost you pay for your electricity. This is usually referred to as your cost per kilowatt hour (or kWh). You can lower this amount if your electric company offers what’s called an Off-Peak or Non-Peak plan which charges less per kWh for those kilowatts used during the time of the day when overall demand is lower. If you sign up for these plans and shift as much of your usage as possible to the off-peak times, you’ll lower your overall cost per kWh. Your electric company may offer other reduced-charge plans.

Example:

1000 kWh used at $.09/kWh would be a charge of $90
1000 kWh used at $.08/kWh would be a charge of $80

Second, total usage – the total kWh used in a month. This shows up on your bill and can vary month-to-month but is usually driven by changes in season and weather. If your home uses electric air conditioning, for instance, but gas heat like mine, your electricity bill is often higher in the summer and lower in the winter only because you’ve switched sources of energy used to set your home’s temperature.
Making your home more energy efficient also helps reduce your total usage and has an impact on your electric bill. Even a reduction in usage of 10% makes a difference.

Example:

1000 kWh used at $.09/kWh would be a charge of $90
900 kWh used at $.09/kWh would be a charge of $81

Now, put the two techniques together. Lower your rate and your usage:

Example:

1000 kWh used at $.09/kWh would be a charge of $90

900 kWh used at $.08/kWh would be a charge of $72 ?


For information on the exact methods you can use to lower your electric bills, see my other online articles:

Cutting Electric Bill
How to Lower Electricity Bills
Compare Electricity Bills
Reducing Electricity Bills
Solar Electricity for Your Home

Good luck!