Navigating Peak Rates
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How Solar Energy Solutions Like Momentum Solar Can Save You Money
The way we pay our electricity bills is undergoing a significant shift. More electric companies are adopting a “time-of-day” pricing model, where the cost of electricity varies based on the time of consumption. Unlike traditional price-hikes, these changes are intended to balance the electric grid and reflect the actual cost of electricity production, they also compel customers to rethink their consumption habits. As households grapple with these adjustments, many are turning to solar energy as a stable, cost-effective alternative. Among these solar solutions, Momentum Solar stands out as a reputable choice for homeowners looking to save on their monthly electricity bills.
Already think it’s time to break free from the utility company? Call 1-888-MOMENTUM today to learn about what solar can mean for you!
The New Frontier: Time-of-Day Pricing
Traditionally, electric companies charged a flat rate for electricity regardless of when it was used. However, utilities like Florida Power & Light (FPL) and Eversource are now implementing time-of-day rates, where prices are higher during peak usage times and lower during off-peak hours [1, 2].
In Eversource’s case, their variable peak pricing (VPP) can cost residential homeowners $0.109 per kWh in on-peak hours and $0.094 per kWh off-peak [5]. This variable pricing helps align utility rates with the actual costs of producing electricity at different times, aiming to reduce overall peak demand.
While time-of-day pricing might make sense for the utility company, it is impractical for everyday people who may need to use their electricity at peak hours and will now be paying more for it.
Impact on Customers
For the average consumer, this new pricing model means having to be more conscious of when electricity-heavy appliances are used. The “cheapest” times to run your dishwasher, do laundry or charge an electric vehicle are now during off-peak hours. While the model offers the potential for cost-saving, it also poses the risk of significantly higher bills for those unable to adjust their consumption pattern [3, 4].
Peak hours are also convenient hours, while the exact times are dependent on your region and utility company, many customers will notice their peak hours being in the afternoon and evening [6]. While it makes sense to reduce your energy consumption at peak hours, for some people it may simply be impractical for those working throughout the day as off-peak hours are likely during the working day or while you’re asleep.
The Solar Alternative: Why It’s a Win-Win
Solar energy offers a way out of this major financial conundrum. By generating your own electricity, you are less dependent on the grid (or even totally off the grid when you choose solar + battery storage!), which frees you from the fluctuating costs associated with time-of-day pricing. Additionally, solar power is a renewable, clean energy source, making it an eco-friendly option.
Momentum Solar is one of the leading residential solar contractors in the country, providing a seamless transition to solar energy. We handle everything from custom system design to installation and maintenance. With options for outright system ownership, affordable leases or Power Purchase Agreements (PPAs), Momentum Solar offers flexibility in how you choose to go solar.
Time to say goodbye to expensive electric bills and hello to helping the environment! Click the “FREE QUOTE” button at the top of this page to get started on your journey.
The Savings
With solar panels installed, not only do you generate your own electricity, but you can also store excess energy in separately purchased batteries for use during peak hours. This means you can essentially operate off the grid during those high-cost periods, saving significant amounts of money in the long run. Battery storage can help you maximize your energy savings!
Furthermore, federal and state incentives can offset the cost of installing solar panels, making the switch to solar an economically attractive option.
As more and more electric companies move toward time-of-day pricing, now is an opportune time for homeowners like you to consider alternatives like solar energy. With our customer-focused approach and comprehensive services, Momentum Solar offers an ideal pathway for homeowners looking to secure price-protected electricity. By making the switch, you’re not only saving money but also contributing to a cleaner, more sustainable future.
Make the switch to solar energy now! Call 1-888-MOMENTUM to speak to a local representative and find out how much you can save!
