Did someone say free electricity!?
When someone tells you something is absolutely free, you give them a disbelieving side-eyed glance. Nothing is free, you might say. And you’re right! The trick is to uncover what the actual arrangement is to determine whether you’re willing to pay the true price for a “free” good or service.
With the TXU Energy Free Nights & Solar Days 12 plan, you get free electricity during the overnight hours. The flip side is the electricity you actually pay for is priced at a relatively high rate. That shouldn’t automatically scare you away, but you need to understand what you’re getting yourself into with this electricity contract. Let’s break down the plan’s terms and conditions to see whether this plan is a good deal.
What does TXU mean by free nights & solar days?
The time of day or night you use electricity determines whether or not you pay for it. From 5:00 a.m. through 7:59 p.m. each day, you pay for electricity just as you would with most any other retail electricity plan. TXU Energy uses the term “solar days” because customers receive power from solar farms.
From 8:00 p.m. through 4:59 a.m., customers are credited their per kWh energy charges and TDU delivery charges. Customers still pay TXU’s monthly base charge of $9.95 and their local TDU’s monthly base charge. For free nights, TXU purchases wind renewable energy credits equivalent to your usage.
Day or night, you use green energy for a full year!
Taking advantage of free renewable energy at night
Imagine how much money you could save with just a few changes in your daily life. When you need to run your dishwasher, do it after 8:00 p.m. If you need to do laundry, make sure you run those appliances after TXU’s free nights kick in. Why pay for running big appliances when you don’t have to?
You could also enhance your home’s security and appearance by adding outdoor lighting that comes on at 8:00 p.m. and turns off before 5:00 a.m. On top of that, holiday lights no longer need to be a burden on your wallet. You can power them for free!
So what will my monthly electricity bill be?
It’s tough to say what an average electricity bill would be on this plan. It depends so much on usage that you’re really in control of your costs. On the plan’s electricity facts label (EFL), TXU Energy estimates customers use 34.3% of energy at night. Getting more than one-third of your electricity for free sounds like a great deal, but remember, those other two-thirds cost more per kWh than under most other electricity plans. This is an example of why understanding your EFL is important.
Your final electricity bill depends on where you live. Each TDU sets its own transmission and delivery charges. In Centerpoint Houston, this plan’s average price is 15.5 cents per kWh at 1,000 kWh of usage in a billing cycle. You can find cheaper rates, but maybe your situation causes you to use a greater proportion of your electricity at night which would drive down your average rate.
Compare Texas electricity plans
Texas Electricity Ratings has the electricity plan shopping tools you need to make an informed decision on which retail company powers your home. Free nights & solar days may be a perfect arrangement for you, but there may be other plans that better suit your needs. Shop http://www.texaselectricityratings.com to find out.