Understand your Electric Bill and Save Money

Do you think you are paying too much for your electric bill?

Have you wondered what the electric companies are charging you for?

Would you like to learn how to reduce your electric bill?

On this post, I will share with you:

• The main sections I read in the electric bill

• How to read the electric use chart, to find clues about how to reduce the electric bill

• What costs are we being charged for in our electric bill

• How the electric supplier can impact how much we pay for electricity

• How to take advantage of the incentive programs that we pay for on our electric bill

As a certified Building Performance Analyst, one of the common concerns I find among homeowners while visiting homes, to perform No-Cost Energy Assessments, is how high the energy bills are these days, and people always want to know if there are ways to reduce them.

How to read the electric use chart

When I ask someone to show me their electric bill, the first thing they usually show me is the total $ amount they are being charged this month.

The dollar amount alone doesn’t always tell you much. The electric bill is charged in $Cts/kWh (dollar cents per kilowatt-hour)

Kilowatt-hour (KWh) is the unit used to measure how much electricity we are using. In general, the higher the energy use in kWh, the higher the bill.

We need to see how much energy we are using, not only in one particular month but in comparison to the yearly average.

The energy use also depends on:

How many people live in the house

How intensely do we use our appliances

What we do for heating or cooling

How well insulated and how leaky the house is

If we have Solar Panels or other sources of electricity

How efficient are our electric appliances

Other special factors

I would ask what they do for A/C, and if it is keeping up with cooling the house.

I see relatively high electric use during the winter time, I would like to ask if they have space heaters or electric baseboard heaters.

Reading these charts can give us ideas about opportunities to improve the energy efficiency of the home. Later we can confirm those opportunities during the walk-through I do around the house.

What costs are we being charged for in our electric bill

Another important aspect of the energy bill is how much we pay per kWh, and it's here when the concepts of Supply and Delivery become very important.

On the electric bill, we pay for two main components:

1) Supply, which is the cost of generating the electricity

2) Delivery, which is the cost of taking that electricity from the generation to our homes or buildings, customer service, and other charges from the Utility and Public Policy programs

Both are changed in $Cts/kWh.

How the electric supplier can impact how much we pay for electricity

The delivery companies are established by region and can’t be changed.

About the Supply, you can change it in many States of the Union.

For example, in the Commonwealth of Massachusetts, where I live, if my electricity is being delivered by Eversource or National Grid, I can choose a different Supplier.

You will want to change your supplier if you are looking for one that offers a reasonable price, or a certain mix of renewable energies if that’s what you want.

In another post I talk more about how to switch your energy Supplier and what to look for, to make an informed decision.

The Delivery charge is composed of many other charges, such as the Renewable Energy Charge, which is money used to support renewable energy programs in the State of Massachusetts.

In another post, I explain how you can incorporate Solar Energy into your home without having to install Solar Panels on your roof or backyard.

Then we have the Energy Efficiency or Energy Conservation charges, which pay for programs such as Mass Save.

How to take advantage of the incentive programs that we pay for on our electric bill

Mass Save is a Massachusetts State mandated program that gives incentives to people to make their homes more energy efficient, which aims at making them more comfortable, helping them waste less energy, and helping the homeowners to save money.

This program pays for No-Cost Energy Assessments, performed by Specialists like me.

Learning about these different charges and how they operate, will help you find ways to reduce your electric bill, either by getting a reasonable Supply Rate, reducing your energy use by making your home more efficient, or including renewable energy in the mix, or a combination of these factors.

If you have any questions about this topic or about other ways to save on your electric, gas, or oil bill, leave a comment at the end of this article. I’ll do my best to answer them.

Keep in mind that every house is different, so It will be great if you take advantage of the Energy Efficiency program that you are already paying through your energy bill, and sign up for a No-Cost Home Energy Assessment. This way you will have a custom assessment for your home. You can sign in for it, whether you are a homeowner or a renter.

If you live in Massachusetts, and you want to know if you qualify for a No-Cost Energy Assessment click the following link: https://sites.google.com/view/energyassessment/home

Thank you for reading this article, consider subscribing to my email list.

Until next time, all the best to you,

Jose