Understanding How Complex Electricity Rates affect Solar Savings
By Carson Riley
| Reading time 1 minute
If the average customer doesn’t understand how electricity prices are structured, how are they going to save money on their bill? The recent Deloitte reSources 2011 Study indicates that only 38% of people claim they understand the resources offered to them by their electricity provider. Additionally, only 17% believe it would not be difficult for them to reduce their electricity bill in a meaningful way! For anyone who has ever analyzed an electricity tariff before, this shouldn’t be too surprising.
On the subject of renewables, while 70% believe alternative energy sources, (such as solar, wind, and hydroelectricity) would be a good option for getting electricity, only 4% are actually participating in Green Energy Programs offered by their provider. Out of the 96% not participating, 59% of them simply were not aware these programs existed! Additionally, 40% would be interested in methods to reduce their electricity use (34% were indifferent). Considering the price per kWh is not getting any cheaper, there seems to be a lot of people who are tired of paying absurd rates for electricity.
Whew! That’s a lot of numbers. But what does it all mean?
What we have here is not a problem of will, but a problem of understanding. Electricity tariffs are absurdly difficult to understand and assess, and if you don’t know what you’re being charged per kWh at every exact moment of every day, your wallet is likely swimming in a world of red ink. If people knew that they could make money on their distributed generation (through solar, wind, hydro, hamsters running on wheels, etc.) I’m sure plenty more people would be interested in the resources their electricity providers offer them. This is why we do what we do. If we can help save (or make) you money on your electricity bill just by informing you when the best time of the day is to consume, and where distributed generation makes the most sense, we can turn that world of hurt into a world of profit.
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