Last Updated: November 8, 2024

These Terms and Conditions (“Terms”) apply to customers who seek to redeem an Amazon Gift Card (“Gift Card”) from Compare Power LLC (“Company”) as part of a promotional offer related to the purchase and activation or installation of a home service, such as internet or electricity, through one of Company’s service providers (”Provider”). By participating in this promotion and redeeming the Gift Card, the recipient of the Gift Card promotion (“Participant”)agrees to all applicable Amazon’s terms and conditions of use, as well as the following Terms:

1. Eligibility

To be eligible to receive the Gift Card,

• Participants must purchase a qualifying service (e.g., electricity, internet, home security) through Compare Power LLC during the promotional period.
• If the promotional offer requires a promo code (“Promo Code”), it must be applied during the ordering process.
• The purchased service must be activated at a valid residential address within the United States.
• Participants must complete the redemption process in the method instructed by the Company.
• The promotion is limited to one Gift Card per eligible household. Multiple submissions from the same household will not be accepted.
• This promotion is only available for US residents.
• The Gift Card can only be issued to the recipient of the promotion.

2. Redemption Process

The link to the redemption form will be provided to the Participant during the ordering process.

Participants may be required to provide acceptable proof of activation, which may include, without limitation: 

• A second bill from the Provider showing the first bill paid
• A payment receipt or payment confirmation email showing proof of payment of the first bill from the Provider
• Other documentation, as specified by the Company

Participants must complete the redemption process within the timeframe specified in the promotion details or one hundred twenty (120) days from the order date of the eligible service, whichever is sooner.

Submissions will be reviewed within ten (10) business days. After review, additional documentation may be requested.

Failed, rejected, inaccurate, or incomplete submissions may result in delays and/or disqualification.

The company is not responsible for lost submissions due to technical errors or reasons outside of the Company’s control. 

If the redemption process is not completed within the specified time, the Participant will forfeit eligibility to receive the Gift Card.

3. Amazon Gift Card

The Gift Card is issued as an Amazon electronic gift card and will be sent to the email address provided during the redemption process.

The participant is responsible for providing an accurate email address for the Gift Card delivery during the redemption process. Once the Gift Card is sent, the receiving email address cannot be modified, and the Company’s obligations to fulfill the promotional offer will be deemed satisfied.

Upon completing the redemption process, the Gift Card will be emailed to the Participant within thirty (30) days of eligibility verification.

The Company is not responsible for delivery delays caused by incorrect or incomplete information provided during the redemption process or technical issues outside its control.

The value of the Gift Card will be specified in the promotional offer and is non-negotiable.

The Gift Card is non-transferable, non-refundable, cannot be exchanged for cash, and cannot be resold.

The Gift Card is subject to Amazon’s terms and conditions and terms and use, and the Company cannot modify any terms set by Amazon.

Any issues or concerns with using the Amazon Gift Card must be directed to Amazon in accordance with its terms and conditions for gift cards.

4. Misuse and Fraud

The Company reserves the right to investigate any suspicious or fraudulent activity related to the redemption of the Gift Card.

Any fraudulent or unauthorized use of the Gift Card promotion may result in forfeiture and disqualification from future promotions.

5. Modifications and Termination

The Company reserves the right to modify or terminate this promotion at any time, for any reason, and without notice.

Any modifications or termination to these Terms shall be effective immediately or on the date specified.

Any modifications or termination to these Terms will be communicated to Participant via email if Participant is materially affected.

6. No Liability

The Company is not responsible for any issues, losses, or damages that may arise from the use or inability to use the Amazon Gift Card.

By participating in this promotion, the Participant agrees to release the Company from any liability related to the receipt, use, or misuse of the Gift Card.

7. General Provisions

Limitation of Liability: Reissuance of the Gift Card, with the maximum value of the specific promotion for which the Participant is eligible, is the sole remedy for any claims or disputes arising from this program.

Applicable Law: The Terms are governed by and construed in accordance with the laws of the State of Texas

By redeeming the Gift Card, Participant acknowledges that Participant has read, understood, and agreed to abide by these Terms. For any questions regarding these Terms or the promotion, please get in touch with the Company at [email protected].

Is Driving an Electric Vehicle Cheaper?

Are you paying too much at the pump? Switching to an EV might save you thousands each year.

However, the exact savings depend on factors like location, driving habits, and charging options.

In this article, we’ll break down the cost comparison between EVs and gas-powered vehicles, covering fuel costs, maintenance, and long-term savings.

Key Takeaways

1. EV drivers save about $1,500 per year on fuel, especially if charging mostly at home.
2. Fewer moving parts mean less upkeep—about $300 saved yearly.
3. Despite higher upfront costs, EVs often become cheaper than gas cars in five years.

EV vs. Gas Car Cost Comparison

1. Fuel Costs

EVs generally have much lower fuel costs than gas vehicles. Charging an EV at home is often more economical, especially if you can charge during off-peak hours. Here’s how it breaks down:

• Home Charging: On average, charging an EV at home costs about $6-$18 for a full charge, providing a range of 200+ miles. This is roughly 1/3 to 1/2 the cost of fueling a gas car.
• Gas Costs: For a comparable 200-mile range, a gas car costs about $30.16 at the average rate of $3.77 per gallon.
• Public Charging: While home charging is cheaper, public fast chargers can cost more, from $20-$40 per full charge. For drivers relying on public chargers, this may reduce potential savings but still generally remains cheaper than gas.

In summary, EV drivers save an estimated 8.1 cents per mile on fuel costs compared to gas vehicles, which translates to around $1,500 annually for the average driver.

2. Maintenance Savings

Electric vehicles typically have lower maintenance costs than gas-powered cars due to simpler engineering and fewer moving parts. Here’s how they compare:

• Routine Maintenance: EVs don’t require oil changes, fuel filters, or spark plugs. Their regenerative braking system also reduces brake wear, extending the life of brake components.
• Cost Comparison: According to industry data, EVs cost around $949 per year in maintenance, while gas cars average $1,279. This translates to an annual savings of about $300 for EV owners.
• Long-Term Maintenance: The need for battery replacement after 8-10 years may impact costs, but many EVs come with battery warranties that last up to 10 years or 100,000 miles.

3. Initial Purchase Price

EVs often come with a higher upfront cost compared to gas-powered vehicles, though this gap is narrowing. The average EV price is around $53,048, while gas vehicles average $35,722. Factors impacting the initial cost include:

• Federal and State Incentives: Many buyers qualify for federal tax credits, which can provide up to $7,500 in savings. State and local incentives can further reduce the upfront cost.
• Price Trends: With advancements in EV technology and increased production, EV prices are steadily decreasing, bringing the cost closer to gas vehicles.

4. Long-Term Savings

Despite a higher initial cost, EVs can be cheaper to own in the long run due to lower fuel and maintenance expenses. Here’s what long-term ownership looks like:

• Average Driver Savings: For an average driver (around 11,011 miles per year), the combined savings in fuel and maintenance exceed $1,200 annually.
• High-Mileage Drivers: “Gasoline Superusers,” or the top 10% of gasoline consumers, could save nearly $5,000 annually on fuel and maintenance by switching to an EV.
• Cumulative Savings Over Time: Studies show that, in most states, EVs become cheaper than gas cars over a five-year period, when considering all costs associated with ownership.

5. Regional Variations and Location-Based Savings

Location significantly impacts cost savings when comparing EVs and gas cars. Here’s why:

• Electricity Rates and Gas Prices: In regions where gas prices are high, like California, and electricity rates are relatively low, the savings can be even greater. For example, Washington state drivers save up to 13.1 cents per mile on fuel, translating to about $120 a month.
• Insurance Costs: Insurance rates can vary, with EV premiums sometimes higher in cities like New York City and Detroit. However, the gap in premiums is narrowing as EVs become more mainstream.
• Local Incentives: Some states offer additional tax credits or rebates, which can enhance the cost-effectiveness of EVs.

6. Other Considerations

There are a few additional factors to keep in mind when considering the switch to an EV:

• Home Charging Installation: Installing a home charging station typically costs between $300 to $20,000, depending on the type of charger. For drivers who primarily charge at home, this one-time investment can maximize fuel savings.
• Additional EV Registration Fees: Some states have extra registration fees for EVs to offset lost fuel tax revenue.
• Insurance Premiums: While EV insurance may be slightly higher, the difference is shrinking as EV adoption grows.

The Bottom Line: Is It Cheaper to Drive an EV?

While the initial purchase price of an EV is typically higher, the savings on fuel and maintenance often make EVs cheaper over time.

For an average driver, the annual savings can range from about $1,000 to $2,200, depending on factors like location, annual mileage, and charging habits.

High-mileage drivers stand to benefit the most, with potential savings nearing $5,000 per year.

Ready to Maximize Your EV Savings?

If you’re considering an EV, finding the right electricity plan is key to maximizing your savings.

Find the best EV electricity plans to make the most of your new vehicle’s efficiency and take control of your energy costs.

Sources

1. Quarterly EV Cost Savings Report – Coltura
2. Calculate Your Fuel Cost Savings from Switching to an Electric Vehicle – Better Energy
3. Save Up to $2200 a Year Driving an Electric Vehicle – Energy.gov
4. EVs cost more, but studies show they’re typically cheaper – Axios
5. EVs Are Cheaper to Own Than Gas Cars in All But 2 States – Road & Track

Author:

Enri Zhulati

Editor:

Ryan Hatch

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

The Cost of Solar Panels

Solar panels are becoming more efficient, and the incentives for going solar have never been better.

With rising energy costs and environmental concerns, now is the perfect time to consider solar for your home.

Below, we’ll explain everything you need to know about solar panel costs, incentives, and their impact on your wallet.

Plus, we’ll show you how Project Solar can make the process easier and more affordable with transparent pricing and no sales pressure.

Key Takeaways

• Solar panel systems cost between $18,000 and $43,000 before incentives.
• Federal, state, and local incentives can cut solar costs by 30-60%.
• The average payback period for solar panels is 8.5 years, with up to $90,000 in savings over 25 years.

Average System Cost

The average cost of a residential solar panel system ranges from $18,000 to $43,000, depending on the system size, location, and available incentives.

Typically, a 6-8 kW system—suitable for an average 2,000-square-foot home—will cost between $15,000 and $22,500 before applying any incentives.

However, after applying the 30% federal solar tax credit, the cost can drop significantly to between $10,500 and $15,750.

Your final price will depend on location, available incentives, system size, and your home’s specific features.

To get a quick estimate tailored to your situation, Project Solar offers an AI-powered tool that provides a personalized solar quote in just 5 minutes—without the hassle of pushy sales tactics.

Cost per Watt

The average cost per watt for solar panels in the U.S. is $2.84 for residential systems.

High-efficiency monocrystalline panels tend to be at the higher end of the price range, but they generate more power with fewer panels—ideal if you have limited roof space.

Project Solar uses top-quality black-on-black monocrystalline panels and Enphase microinverters to ensure maximum efficiency and reliability.

Commercial systems are slightly cheaper, ranging from $1 to $2.50 per watt.

How Incentives Impact Solar Costs

Solar incentives and tax credits play a significant role in making solar panels more affordable. Here are the top incentives available:

1. Federal Solar Tax Credit

The federal solar tax credit provides a 30% tax credit on the total cost of a solar system through 2032.

For a $20,000 system, this incentive means a $6,000 tax credit, reducing the net cost to $14,000.

Homeowners can save as much as $10,000 with this credit alone.

Project Solar helps you take full advantage of all available incentives to bring your installation costs down even further.

Note that this incentive will decrease to 26% in 2033 and 22% in 2034, so it’s wise to act soon to get the full benefit.

2. State and Local Incentives

Many states offer additional incentives to reduce solar costs further.

For example, New York provides a 25% state tax credit of up to $5,000.

Some states also exempt solar installations from sales or property taxes, significantly lowering costs.

Make sure to research what’s available in your area.

Or, let Project Solar do the heavy lifting by providing a comprehensive, transparent quote that includes all applicable state and local incentives.

3. Net Metering

Most states have net metering policies that allow homeowners to send excess solar energy back to the grid for credits on their electricity bills.

This means you can effectively “sell” your surplus energy and reduce your utility bill significantly.

Project Solar helps you set up net metering seamlessly, ensuring you get credit for every extra energy your system produces.

4. Performance-Based Incentives

Some states offer performance-based incentives (PBIs), which provide ongoing payments based on your solar system’s energy production.

For instance, New Jersey’s SuSI program offers $85 per 1,000 kWh generated for 15 years, making solar panels even more profitable.

Project Solar will guide you through the process to ensure you receive all the performance-based incentives available in your state.

5. The Total Impact

Combining all these incentives, you could easily see a 30-60% reduction in your total solar costs.

In states like New Jersey, incentives can reduce the cost of a 9.3 kW system from $42,275 to just $6,841 after all credits and rebates—a substantial reduction that makes the payback period much shorter.

Factors that Affect Solar Panel Cost

Several key factors determine how much you’ll pay for your solar panel installation:

• System Size: Larger systems are more expensive but can generate more savings in the long run.
• Location: Your location affects the sunlight your roof receives and labor and permitting costs.
• Type of Solar Panels: Monocrystalline panels are more efficient but cost more, while polycrystalline panels are cheaper but less efficient.
• Roof Condition and Installation Complexity: Older, complex, or multi-sloped roofs can increase installation costs.

System Size and Cost Estimates

The cost of your system largely depends on its size:

Additionally, the cost of installing solar panels varies by state, impacting the overall savings potential.

Below is a detailed breakdown of typical costs, average cost per watt, estimated payback periods, and potential 25-year savings for various states:

Seeing how costs vary by state can help you understand the range of investment and savings possible with solar.

These figures are starting points—your specific requirements, panel choice, and incentives will influence the final cost.

To make things even easier, Project Solar provides customized solar quotes that factor in your specific state incentives, offering you the lowest possible price in your area.

Get a transparent quote in just 5 minutes →

Additional Costs to Keep in Mind

Solar installations come with other associated costs beyond just the panels themselves:

• Inverter: $1,000 to $3,000 (necessary to convert solar DC power to AC power).
• Battery Storage: Around $14,000 if you want to add energy storage (optional but useful for backup power).
• Mounting Systems and Electrical Wiring: Adds roughly 7 to 20 cents per watt to the installation.

These additional costs are generally included in most quotes, but having an itemized understanding can help you make better financial decisions.

How Quickly Will You Break Even?

The average payback period for a solar installation is about 8.5 years.

This means that within just under nine years, the savings on your energy bills will have covered the system’s initial cost.

After that, it’s free electricity for the rest of your panels’ lifespan, lasting 25-30 years.

Plus, with Project Solar’s 25-year SolarCare™ Warranty, you’ll have peace of mind knowing your system is covered for production, workmanship, and more.

Long-term Savings

With incentives and reduced energy bills, homeowners can save between $20,000 and $90,000 over the life of their solar panels.

Studies also suggest installing solar panels can increase your home’s value, making them a solid investment in energy independence and property appreciation.

Is Solar Worth It?

In a nutshell, absolutely, yes. Solar energy remains an excellent option due to falling installation costs, lucrative federal and state incentives, and net metering policies.

Depending on your location, you could save 30-60% off your total system cost, with payback periods shorter than ever.

With the potential to save tens of thousands of dollars over the next few decades, there’s a good chance that your solar investment will keep paying dividends long after the system has paid for itself.

If you’re ready to explore your options, get a free quote from Project Solar.

With their AI-powered tool, you can get transparent pricing in just 5 minutes—no pressure, no strings attached.

This is a great way to see how much you can save and whether solar is right for your home.

And don’t wait too long—some of these incentives won’t be around forever.

Author:

Enri Zhulati

Editor:

Ryan Hatch

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

What is Project Solar?

Project Solar makes going solar simple, affordable, and transparent.

By cutting out salespeople and unnecessary commissions, they offer some of the lowest prices on the market.

With their AI-powered tool, you can get a personalized solar quote in just 5 minutes—there are no hidden fees or pushy sales tactics, just upfront pricing.

Key Takeaways

1. Project Solar offers some of the lowest prices in the U.S. by eliminating salespeople and middlemen.
2. Whether you want a complete installation or a DIY kit, Project Solar provides options that suit any budget.
3. Project Solar’s 25-year SolarCare™ Warranty covers production, workmanship, and more, ensuring long-term protection.

Get Your Free Project Solar Quote →

Why Project Solar?

Here’s what makes Project Solar a standout choice for homeowners:

• No Salespeople: Transparent, upfront pricing without the pressure.
• Instant Quotes: Their AI-powered tool delivers a custom solar estimate in 5 minutes.
• Lowest Price in America: Project Solar cuts out the middleman and offers some of the lowest solar panel prices in the U.S.
• Top-Quality Equipment: They install black-on-black monocrystalline panels and Enphase microinverters for superior performance.
• 25-Year Warranty: Comprehensive coverage, including production guarantees and workmanship protection.

How It Works

Project Solar simplifies the process:

1. Get a Free Quote: Get a custom quote in 5 minutes with their AI-powered tool.
2. Choose Your Plan: Full installation, DIY kit, or PPA—there’s an option for everyone.
3. Installation: Project Solar handles everything or guides you through DIY installation.
4. Start Saving: Your solar system reduces your energy bills from day one.

Project Solar Reviews

“The quote process was quick and easy, and I’m already saving money.”
— Jeremy, Arizona

“Transparent pricing and no hidden fees—highly recommend Project Solar.”
— Melissa, California

“The DIY kit saved me even more. Great support throughout.”
— Brian, Texas

Get Your Free Solar Quote

If you are considering solar panels for your home, Project Solar’s transparent pricing, high-quality equipment, and DIY options make them attractive to many homeowners.

In just 5 minutes, you can get a transparent quote with no pressure and no strings attached. It’s that simple.

Get Your Free Project Solar Quote →

Project Solar FAQs

If you’re considering Project Solar, these insights should help clarify its process and benefits.

Author:

Enri Zhulati

Editor:

Ryan Hatch

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Fall is Your Best Shot at Cheap Electricity

After a decade in the Texas energy market, I’ve observed a consistent pattern: fall offers the best electricity rates.

The shoulder season brings milder weather and lower electricity demand, making fall and spring the best times to lock in competitive fixed-rate electricity plans.

Most people overlook this, but shopping plans in autumn could save significant money on your bill.

Here’s what you need to know to take advantage of this seasonal opportunity.

What is the Shoulder Season?

It’s fall and spring when the weather’s decent.

No one’s cranking the AC or heater, so electricity demand drops.

That means cheaper rates for you.

Why Fall Rates Are Lower

Summer’s over. The grid’s not stressed.

Providers have excess power to sell. The result?

They slash prices to get your business, offering you a window to lock in lower rates.

Post-Summer Market Reality

As soon as that last 100-degree day hits, demand plummets, and rates usually follow.

But watch out—natural gas prices play a big role here.

For example, when gas prices spiked in 2022, electricity rates surged, even in the fall. And don’t forget, a harsh winter forecast can still mess with the market.

Lock In Now or Pay Later

Fall is your golden ticket to a fixed-rate plan.

Lock in a low rate now, and you’re set for winter, when prices typically skyrocket.

Switching from a variable-rate plan (or a holdover rate) could save you hundreds of dollars annually.

If you stay on a variable rate, prepare for bill shock when winter hits.

Beware the Odd-Term Trap

Here’s an insider secret: those 3, 7, or 9-month plans on Power to Choose?

They’re designed to screw you. Why?

Because they’ll land your renewal smack in the middle of summer when rates are sky-high.

I stick to 12-month or 24-month plans to avoid renewing when rates peak.

How to Shop Smart

• Compare fixed-rate plans. Variable rates can lead to unpredictable bills.
• Use Live Link™. It pulls your usage data, so you know exactly what you’ll pay.
• Start shopping 2-3 weeks before your contract expires.

Take Control of Your Electricity Bill

Fall is your chance to secure a deal that’ll save you hundreds over the year.

If you’re on a variable holdover rate or your contract ends soon, now’s the time to shop.

Remember, in Texas, electricity and timing are everything. Shop smart, save big.

And to ensure you’re getting the best deal, use Live Link™ to compare plans based on your real usage.

Factors Driving Texas Electricity Prices

Texas electricity rates are unpredictable, rising and falling based on several key factors.

Here’s what you need to know to get ahead and avoid overpaying.

Key Takeaways

1. Demand and extreme weather increase Texas electricity rates, especially in summer and winter.
2. Natural gas prices are directly linked to electricity costs—lock in a fixed rate to avoid hikes.
3. Live Link™ helps you compare plans and rates for your home energy consumption.

1. Too Many Texans, Not Enough Power

Texas has added over 4 million new residents since 2010.

More people means more AC units cranking in summer, pushing the grid to its limits.

What It Means For You: In the summer of 2023, prices jumped 800% in one day. Ouch.

Fix It: Lock in a fixed-rate plan now. Don’t wait for the next heatwave.

2. Natural Gas Prices Are a Rollercoaster

Over 45% of Texas’ electricity comes from natural gas.

When gas prices triple (like they did from 2020 to 2022), your bill follows.

What It Means For You: Variable-rate plans are a gamble. You could win, but you could also lose big.

Fix It: Get a fixed-rate plan when gas prices dip. It’s like buying insurance for your electric bill.

3. Texas Weather is Extreme, and So Are the Prices

Remember the 2021 winter storm? Electricity hit $9,000 per megawatt-hour.

That’s 180 times the normal price.

What It Means For You: Extreme weather = extreme bills, especially on variable-rate plans.

Fix It: Again, fixed-rate plans are your friend. They protect you from weather-related price spikes.

4. Grid Upgrades Aren’t Free

ERCOT improved the grid after the 2021 storm, which is great for reliability but not great for your short-term bill.

What It Means For You: You’re paying for a better grid, whether you like it or not.

Fix It: You can’t avoid these costs but can offset them by using less electricity. Time for some LED bulbs?

5. Renewable Energy: It’s Complicated

Texas leads in wind and solar, providing nearly one-third of the state’s power.

Wind and solar are cheaper overall but unreliable during peak times.

What It Means For You: When renewables can’t keep up, expensive backup power kicks in.

Fix It: Look for plans that offer free nights or weekends. Use major appliances during these off-peak times.

6. “Power to Choose” Doesn’t Always Mean Lower Prices

Big names like TXU or Reliant often charge more. Why? Brand recognition and big marketing budgets.

What It Means For You: Sticking with a familiar brand might cost you.

Fix It: Use Live Link™ to compare real, usage-based rates. Don’t fall for fancy ads.

7. Future Outlook: More of the Same

Expect rates between 14-18¢ per kWh. But with Texas weather, who knows?

What It Means For You: Rates fluctuate, but you can still find deals.

How to Save

• Efficiency Pays: Upgrade to energy-efficient appliances and habits.
• Shop Smart: Lock in fixed rates in spring or fall when demand is low.
• Get Personal: Use Live Link™ to compare plans based on your real usage, not averages.

Take Action Now

Don’t let confusing electricity rates drain your wallet.

Connect to Live Link™ and find a plan that fits your usage.

→ Cut Your Electric Bill with Live Link™

Live Link™ shows you personalized rates based on your actual usage—no guesswork, no surprises—just savings.

Author:

Enri Zhulati

Editor:

Ryan Hatch

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

An In-Depth Analysis by Compare Power

Executive Summary

Navigating Texas’s deregulated electricity market can be challenging for consumers.

With over 130 Retail Electric Providers (REPs) offering a multitude of plans, many Texans may unknowingly choose options that lead to higher electricity bills than necessary.

This white paper presents an in-depth analysis conducted by Compare Power, highlighting significant discrepancies between advertised electricity rates and the actual costs incurred by consumers.

By modeling usage data across various consumption levels, we demonstrate how selecting a plan that aligns with actual usage patterns can result in substantial annual savings.

We also introduce Compare Power’s innovative solution, Live Link™, designed to help consumers make informed decisions and reduce their electricity expenses.

Introduction

Since the deregulation of the Texas electricity market in 2002, residents have had the freedom to choose their electricity providers.

While this was intended to foster competition and lower prices, the abundance of options has made it challenging for consumers to identify the most cost-effective plans for their needs.

The complexity of electricity plans and confusing rate structures often lead to consumers overpaying for electricity.

Background

The Texas Electricity Market Landscape

The deregulation allowed consumers to select from various REPs, breaking up regional utility monopolies.

As of 2024, more than 130 REPs operate in Texas, offering hundreds of plans through direct sales and comparison websites.

While beneficial in theory, this variety has introduced complexities that make it difficult for consumers to navigate the market effectively.

Regulatory Framework and Market Complexity

The Public Utility Commission of Texas (PUCT) requires REPs to disclose charges clearly through Electricity Facts Labels (EFLs).

These labels help consumers compare plans by outlining key terms, rates, and fees.

However, the increasing complexity of plan structures, including tiered rates and conditional credits, has diminished the effectiveness of EFLs in aiding consumer decision-making.

Problem Statement

The rise of intricate plan structures—such as free nights and weekends, bill credits, and tiered pricing—has made it challenging for consumers to compare electricity plans accurately.

Many of these plans feature complex rate structures that can obscure the true cost of electricity.

Relying solely on advertised rates often leads consumers to select plans with higher annual costs, sometimes hundreds or thousands of dollars.

Objectives

Our study aims to:

1. Analyze Actual Costs: Based on modeled usage data, determine consumers’ true cost for advertised electricity plans.
2. Compare Advertised and Actual Costs: Assess how plans advertised as cheapest at specific usage points compare to other popular plans when actual consumption is considered.
3. Evaluate Savings Potential: Identify the potential savings consumers can achieve by selecting plans that match their actual electricity usage patterns, using tools like Live Link™.

Methodology

Data Modeling

We modeled electricity usage for seven consumption levels representative of different household types:

• 500 kWh per month
• 750 kWh per month
• 1,000 kWh per month
• 1,174 kWh per month (average usage in Texas)
• 1,500 kWh per month
• 2,000 kWh per month
• 3,000 kWh per month

To account for seasonal variations, we applied weather-adjusted monthly multipliers based on historical usage patterns:

These multipliers adjust base monthly usage to reflect typical seasonal consumption in Texas.

Plan Selection

We analyzed seven electricity plans chosen based on their market prominence and advertised rates at specific usage levels:

1. Rhythm Energy Simply Green 23 (identified as the most cost-effective plan across all usage levels)
2. Gexa Energy Eco Saver Plus 12
3. TXU Energy Live Your Free 12
4. 4Change Energy Cash Money 12
5. Frontier Utilities Saver Value 12
6. Frontier Utilities Saver Plus 12
7. Frontier Utilities Saver Premium 12

Types of Plans Analyzed

We focused on three main types of electricity plans:

1. Fixed-Rate Plans: Offer a consistent rate per kilowatt-hour (kWh) throughout the contract period.
2. Free Nights and Weekends Plans: Provide different rates or free electricity during designated off-peak hours or days.
3. Bill Credit Plans: Offer credits on the bill when certain usage thresholds are met, significantly affecting the average rate per kWh.

Cost Calculation

For each plan and usage level, we calculated the total annual cost by incorporating all elements of the rate structure:

• Energy Charges: Cost per kWh consumed.
• Base Charges: Fixed monthly fees.
• Transmission and Distribution Service Provider (TDSP) Charges: Fees set by the local utility for delivering electricity.
• Credits and Discounts: Any bill credits or discounts applied when specific conditions are met.

This approach ensured that cost comparisons reflected the true financial impact on consumers, not just the advertised rates.

Key Findings

1. Discrepancy Between Advertised and Actual Costs

• Significant Differences: Plans advertised as the “cheapest” at specific usage levels often resulted in higher annual costs when actual consumption patterns were applied.
• Up to 40% More Expensive: Some advertised cheapest plans cost consumers up to 40% more annually than the most cost-effective plan identified in our analysis.

2. Impact of Usage Patterns and Seasonal Variations

• Variable Costs: Electricity costs vary significantly based on individual usage patterns and seasonal changes.
• Plan Performance Fluctuations: Certain plans performed well during specific months but were less cost-effective over the entire year due to fluctuations in consumption.

3. Potential Savings for Consumers

• Substantial Savings: By choosing plans that align with their actual usage, consumers could save between 6% and 40% annually.
• High-Usage Households: By selecting the right plan, households using around 3,000 kWh monthly could save over $3,700 annually.

4. Complexity of Plan Structures

• Consumer Challenges: Complex rate structures make comparing options and identifying the most cost-effective plan difficult.
• An advantage to Providers: This complexity can obscure the true cost of plans, potentially benefiting electricity providers over consumers.

Detailed Savings Analysis

Below is a summary of potential annual savings when choosing the most cost-effective plan (Rhythm Energy Simply Green 23) compared to other plans at various usage levels.

Savings at 500 kWh Average Monthly Usage

Average Savings with Best Plan: $378.83 (26.12% less on average)

Savings at 750 kWh Average Monthly Usage

Average Savings with Best Plan: $550.79 (27.42% less on average)

Savings at 1000 kWh Average Monthly Usage

Average Savings with Best Plan: $500.40 (19.58% less on average)

Savings at 1174 kWh Average Monthly Usage (Average Texan)

Average Savings with Best Plan: $610.66 (21.18% less on average)

Savings at 1500 kWh Average Monthly Usage

Average Savings with Best Plan: $657.81 (17.59% less on average)

Savings at 2000 kWh Average Monthly Usage

Average Savings with Best Plan: $1,058.63 (21.28% less on average)

Savings at 3000 kWh Average Monthly Usage (Large Home)

Average Savings with Best Plan: $1,935.25 (25.04% less on average)

Implications for Texas Consumers

1. Misleading Advertised Rates

Consumers may be misled by advertised rates that seem attractive but don’t reflect actual costs based on their usage patterns. Relying solely on these rates can lead to substantial overpayment.

2. Importance of Personalized Plan Selection

Selecting an electricity plan that matches one’s actual usage pattern is crucial for maximizing savings. Personalized analysis is essential to identify the most cost-effective options.

3. Need for Comprehensive Comparison Tools

There’s a clear need for tools that analyze real usage data and simplify comparing complex electricity plans, enabling consumers to make informed decisions.

4. Regulatory Considerations

The complexity of plan offerings may require enhanced regulatory oversight to ensure transparency and protect consumer interests. Simplifying EFLs and standardizing plan presentations could help in this effort.

Compare Power’s Solution: Live Link

Introduction to Live Link

Compare Power has developed Live Link™, a tool designed to empower consumers by providing personalized electricity plan recommendations based on their historical usage data.

How Live Link Works

• Smart Meter Integration: Live Link securely connects to a consumer’s smart meter, accessing detailed usage data while ensuring privacy.
• Personalized Analysis: The tool analyzes the consumer’s unique consumption patterns, considering daily and seasonal variations.
• Customized Plan Recommendations: Live Link compares available electricity plans, calculating the expected annual cost for each based on the consumer’s actual usage.
• Transparent Cost Projections: Consumers receive clear, easy-to-understand cost projections, enabling informed decision-making.

Benefits for Consumers

• Accurate Cost Estimates: Provides realistic cost expectations, eliminating surprises on electricity bills.
• Time Savings: Simplifies the plan selection process, saving consumers time.
• Financial Savings: Helps identify plans that offer significant annual savings based on usage.

Conclusion

The Texas deregulated electricity market offers consumers the freedom to choose, but with that freedom comes the challenge of navigating a complex array of plans and pricing structures.

This study highlights how consumers can incur unnecessary costs when relying solely on advertised rates and underscores the importance of selecting plans that align with actual usage patterns.

Live Link™ addresses this challenge using real usage data to provide personalized, transparent plan comparisons.

By empowering consumers with accurate information and simplifying the selection process, Live Link™ enables Texans to make informed decisions that can lead to substantial savings.

Compare Power remains committed to innovation and consumer advocacy as the electricity market continues to evolve.

We strive to bring clarity and transparency to energy choices in Texas, ensuring that every Texan has access to the tools and information necessary to make the best decisions for their household’s energy needs.

Note: All data and findings presented in this report are based on modeled usage patterns and the analysis of available electricity plans as of September 4, 2024. Actual savings may vary based on individual circumstances and changes in market offerings.

Author:

Graham Griffin

Editor:

Enri Zhulati

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

What Are You Really Paying for Electricity?

When shopping for an electricity plan, it’s easy to focus on the advertised rates you see on provider websites or comparison marketplaces like Power to Choose.

But here’s the truth: those rates only tell part of the story.

The true cost of your electricity plan is based on your home’s unique electricity usage patterns, not just the numbers you see advertised.

To avoid overpaying, it’s important to understand how your real usage interacts with each plan’s pricing formula.

Let’s explore what a plan’s true cost means for you and how to find it.

Key Takeaways

• Advertised rates only apply to exact usage levels: Small changes in your electricity usage can lead to significantly higher costs than the advertised rates suggest.
• Providers often use advertised rates to make plans seem cheaper: While these rates may look appealing, they don’t reflect what most households actually use each month, leading to unexpected bills.
• Find the true cost of each plan: Live Link™ lets you see the real price based on your actual usage, helping you avoid pricing traps and save money.

What Is a Plan’s True Cost?

The true cost of an electricity plan is the actual price you’ll pay over time based on your monthly electricity usage.

It factors in all the variables that affect your bill, not just the prices advertised for 500 kWh, 1,000 kWh, or 2,000 kWh of usage.

While the advertised rate might give you an idea of what you’ll pay at a specific usage point, the true cost reflects what you’ll pay as your energy consumption fluctuates throughout the year.

Advertised Rates Don’t Tell the Full Story

The advertised rates you see are based on exact usage scenarios that often don’t match your actual consumption.

For example, you might see a plan offering 10.9 cents per kWh at 1,000 kWh, but if your usage is 857 kWh in one month and 1,274 kWh in another, you’ll likely end up paying something different than that advertised rate.

Here’s why:

• Advertised rates are static: They only apply to those exact usage points, which means they don’t account for how your energy needs change over time.
• Your usage is dynamic: Energy consumption fluctuates based on the weather, household activities, and lifestyle changes. Unless your usage matches the exact advertised usage every month (which is rare), the advertised rate won’t reflect your actual costs.

To understand what you’re paying, you must look at the true cost.

How to Calculate a Plan’s True Cost

Calculating a plan’s true cost might sound complicated, but it can be done manually with some effort, or you can simplify the process with Live Link™.

Here’s how to calculate it manually:

1. Review Your Past Usage: Look at your electricity bills for the past 12 months. This gives you a picture of your energy use throughout the year, including high-usage months (like summer) and low-usage months.
2. Factor in All Plan Costs: Don’t stop at the advertised rate. Consider base charges, TDU delivery fees, and any pricing tiers. Hidden fees can quickly add up, making a plan more expensive than it initially seems.
3. Create a Spreadsheet: To get a full picture of each plan, you’ll need to build a spreadsheet and calculate the costs for each month based on your past usage. This means plugging in your monthly usage and applying the charges from the Electricity Facts Label (EFL) for each plan. You’ll also need to factor in delivery charges, base fees, and bill credits. If you’re interested in doing it manually, check out our step-by-step guide here: How to Manually Calculate Electric Plan Costs.

Or, save yourself the time and effort:

Use Live Link™ to instantly calculate the true cost of any electricity plan.

Live Link™ automatically pulls your real usage data, applies the charges for the plan, and shows you what you’ll actually pay—without needing to build a spreadsheet or do any manual calculations.

Both options work, but Live Link™ can save you hours of manual work and help you find the right plan faster.

Why Knowing a Plan’s True Cost Matters

Understanding a plan’s true cost is the key to avoiding overpaying for electricity.

You must choose a plan that fits your needs and budget, determining the price based on your actual consumption patterns rather than advertised rates.

Here’s why it’s so important:

• Predictable Bills: When you understand a plan’s true cost, your bill has fewer surprises. You’ll know what to expect, even when your usage fluctuates.
• Better Decision Making: Knowing a plan’s true cost means you can compare competing offers more accurately and make smarter decisions about which one is best for your home.
• Long-Term Savings: Choosing a plan based on its true cost—instead of chasing the lowest advertised rate—can save you hundreds of dollars over the course of a year.

Don’t Rely on Advertised Rates Alone

Choosing an electricity plan based solely on the advertised rate can lead to higher bills and unexpected charges.

That’s why it’s so important to understand your true cost—the amount you’ll actually pay based on your unique energy consumption patterns.

Discover Your True Cost Today

Stop guessing what you’ll pay for electricity.

Connect your home to Live Link™ and automatically pull your real usage history.

Instantly and accurately see each plan’s true cost and find the plan that fits your home and budget—without any surprises.

Author:

Enri Zhulati

Editor:

Ryan Hatch

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Spot Hidden Costs and Avoid Pricing Traps

So, you’re shopping around for an electricity plan in Texas, and you see rates displayed on provider websites, ads, and shopping marketplaces.

But what do those rates really mean, and is that what you’ll actually pay?

These rates, called advertised rates, are required by law and are based on specific monthly usage levels: 500 kWh, 1,000 kWh, and 2,000 kWh.

At first glance, it might seem like an easy way to compare plans — but here’s the catch: almost no one uses exactly 500, 1,000, or 2,000 kWh of electricity each month.

Key Takeaways

• Advertised rates can be misleading: These rates only apply at specific usage levels (500, 1,000, or 2,000 kWh), meaning your actual cost can be much higher if your usage doesn’t match exactly.
• Most plans hide the true cost: Providers design plans to look appealing at certain usage points, but the real cost of the plan often spikes if your usage fluctuates even slightly.
• Find your true cost: Live Link™ helps you avoid misleading rates and shows you plans’ real cost based on your energy use.

What Are Advertised Electricity Rates?

Advertised rates are the prices energy providers are required to display for their plans, based on the specific usage points mentioned above.

They’re designed to help you compare plans easily, but the truth is, these rates only reflect what you’ll pay if your monthly usage is exactly at those points.

Since almost no one uses exactly 500, 1,000, or 2,000 kWh every month, the advertised rate that caught your attention might not be what you end up paying.

Let me explain why these rates can be misleading and how they affect your electricity bill.

How Advertised Rates Can Be Misleading

Electricity providers in Texas are required to display rates for 500 kWh, 1,000 kWh, and 2,000 kWh of monthly usage, pulled directly from each plan’s Electricity Facts Label (EFL).

While this helps consumers quickly compare plans, these rates only apply if you use exactly those amounts.

For example, a plan may advertise 10.9 cents per kWh at 1,000 kWh, but if your usage is 999 kWh or 1,001 kWh, your cost could increase significantly.

Providers often design their plans to look cheap at these specific usage points, but the price per kWh can spike if your usage falls outside those exact numbers, leaving you with a much higher bill than expected.

Since most people’s usage fluctuates month to month, it’s easy to get caught off guard.

Why Your Usage Fluctuates

Your electricity consumption varies depending on the time of year, how many people are in your home, and even how much time you spend there.

• In the summer, your usage might spike because of air conditioning.
• In the winter, it could dip if you don’t need as much heat or energy.
• Other factors, like guests or lifestyle changes, can also impact how much electricity you use each month.

Because your usage fluctuates, advertised rates rarely reflect what you’ll actually pay on your electricity bill.

How We Fixed the Problem

We built Compare Power to solve this exact problem.

Unlike other comparison websites, Compare Power goes beyond showing you the advertised rates at 500 kWh, 1,000 kWh, or 2,000 kWh.

Instead, we factor in your actual usage history to show you the true cost of a plan over time.

This way, you can see what you’ll really pay, even when your usage fluctuates.

The Historical Usage Calculator

Years ago, we introduced the Historical Usage Calculator, which lets you input your past electricity usage to see how different plans would impact your costs over the course of a year.

It smooths out those spikes and dips in your usage and reveals the true cost of a plan based on your actual consumption patterns.

By factoring in your high-usage months (like those hot Texas summers) and lower-usage periods, you can avoid plans that seem affordable at first but end up costing you more.

Millions of Texans have used Compare Power to make smarter, more informed electricity decisions.

With over 72,000 5-star reviews, the Historical Usage Calculator has helped countless Texans save on their bills.

Introducing Live Link™

Now, we’ve made it even easier with Live Link™.

Instead of manually entering your past usage, Live Link™ automatically pulls your real usage data from your Transmission and Distribution Utility (TDU).

Here’s how Live Link™ simplifies the process:

• No manual entry: Your usage data is pulled directly from your TDU.
• Accurate comparisons: We use your real usage history to calculate the actual cost of electricity plans available to you.
• Instant results: With just a few clicks, you’ll see which plans are truly the best fit for your household’s energy consumption.

Live Link™ takes the guesswork out of finding the right plan for your home.

How to Avoid Advertised Rate Traps

So, how do you avoid falling into these traps? The key is not to rely solely on the rate advertised at 1,000 kWh or any other fixed point.

Instead, focus on how a plan works across a full year of usage.

Here’s what you can do:

• Look for flat-rate plans: These plans offer consistent pricing across different usage levels, so you’ll have fewer surprises even when your usage fluctuates.
• Know your usage: You can log into your electricity provider’s dashboard, use Smart Meter Texas for 15-minute interval data, or use Live Link™ to pull your real usage data for accurate comparisons automatically.
• Use Live Link™: Live Link™ lets you compare plans based on your actual consumption rather than relying on advertised rates that may not apply to you.

Don’t Be Fooled by Advertised Rates

Advertised rates are only a small part of the story when it comes to choosing the right electricity plan.

Very few people use exactly 1,000 kWh every month, and plans that seem cheap at that usage level can be far more expensive when your actual usage is considered.

Live Link™ gives you the full picture of each plan’s cost, helping you find the best deal for your home without any surprises.

Start Saving Today

Ready to see how much you could save?

Connect your home to Live Link™, instantly access your usage data, and find the best electricity plan tailored to your household.

Author:

Enri Zhulati

Editor:

Ryan Hatch

Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.