When it comes to electricity in the United States, it’s truly buzzing. Research shows that over one-third of the country’s yearly greenhouse emissions can be attributed to electricity. So, environmentalists looked for ways to crack down on the amount of energy being produced. During many studies, it became apparent that many Americans had the same energy-consuming habits. This spurred the creation of time-of-use electric rates.
What are time-of-use electric rates?
Time-of-use electrical rates are when electric companies charge varied rates on electricity depending on how high the demand is. If individuals tend to use their electricity when most others do, this is considered peak times by the electrical company. These people are charged at a higher rate than if they were to use their electricity at different times. Time-of-use electric rate systems were put in place to help with eliminating peak demand times. It’s also an effort to show individuals when they’re consuming the most electricity and how to curb those habits.
How does this benefit the customer?
Time-of-use electrical rates can be beneficial for customers. People can vary the times they do tasks that demand high amounts of energy, like dishes, washing clothes, or binge-watching TV to not be at peak hours. Customers can then dictate whether they want a higher or lower energy bill. This gives customers the power to rework their daily schedules to accommodate a lower energy bill.
How are time-of-use electrical rates eco-friendly?
Using less electricity was not only environmentally smart and sound, but it also became an economic decision. Homeowners began to take note of when their energy bills would spike, which coincided when other consumers were also tapping into the electric source. Knowing that using electricity during downtimes could save them money became a selling point for decreasing their carbon footprint.
Time-of-use electrical rates are not only an economic remedy but also an environmentally sound decision to try to decrease the number of emissions attributed to the electrical sector. What are your thoughts? Have you ever had to pay time-of-use electrical rates before?