In April 2021, the Massachusetts Attorney General's Office reported that consumers across the state overpaid for electricity by $85.7 million between July 2019 and June 2020. That number jumped to a whopping $426 million over the last five years.
They’re not alone. Across the United States, millions of people are either overpaying for electricity or missing out on savings for a variety of reasons.
They may be failing to take advantage of deregulation or have difficulty navigating offers from third-party suppliers. They may be missing out on energy-saving state programs and home energy efficiencies. For most people, it’s a combination of factors.
Have you been overpaying? To find out, start by answering these four key questions below. Then learn how Perch can help you get the energy savings you deserve.
In the past, electricity markets in the United States were government-regulated. Consumers had no choice but to pay utility company rates. But in 1992, with the passing of the Energy Policy Act, the energy industry began restructuring or deregulating in some states to prevent monopolies, expanding access to suppliers, competitive rates, cleaner energy options and efficiency programs.
You continue getting the same service consistency you’re used to—since your local utility company is still responsible for the transmission and distribution of electricity to your home—but you may pay much lower rates since you're buying your electricity from a third-party supplier, not your utility. You’ll also benefit from:
Deregulated electricity markets are available in all or part of the following states:
Bottom line: If you live in a deregulated state, but are paying utility company prices, you may be seriously overpaying for your electric supply. You’d be smart to shop around for cleaner options at more competitive rates. Check to see if Perch is in your state.
Many people who live in deregulated states don’t even realize they have a choice in electric supply providers. And even for those who do, comparison shopping is no picnic—and it’s easy to get scammed. You need to read contracts carefully, making sure you avoid deceptive practices and don’t fall for promotions that mysteriously turn into giant rate hikes. Learn how Perch takes it all off your plate to find you energy savings and prevent pitfalls.
All too often, low-income communities and minority households are disproportionally targeted by predatory suppliers. For example, the Massachusetts Attorney General’s office recently reported that Massachusetts electric consumers overpaid by over $85 million between July 2019 and June 2020, with the largest overpayments coming from lower-income communities.
As the pandemic created job insecurity for many over the past year—it also created higher electricity bills. Our homes became offices, schoolrooms and social spaces, and we used more electricity as a result. Once again, lower-income families suffered most from this: Many are carrying large past-due balances and cannot get ahead due to new work-from-home industry policies.
Bottom line: Energy markets are complex and confusing—and trying to figure them out can be costly. Perch energy's matching technology regularly monitors the market for the cleanest, lowest-cost supplier that meets your preferences, and then automatically switches you over to that plan. There are no hassles or hiccups, no extra fees or rate hikes. In fact, we only profit when you save.
Most states offer free energy audits, assistance programs and even rebates to help consumers improve energy efficiency, take advantage of more green energy options and improve energy security in lower-income communities. Here are two such programs in Massachusetts and New York, respectively.
Sponsored by Massachusetts’ electric utilities and energy efficiency service providers, and in partnership with the Massachusetts Department of Energy Resources, Mass Save provides a wide range of services, incentives, and training to promote energy efficiency and help residents manage costs. They offer:
Like Mass Save, the New York State Energy Research and Development Authority (NYSERDA), works with multiple stakeholders to promote energy efficiency and the use of renewable energy sources to reduce greenhouse gas emissions, accelerate economic growth, advance clean energy innovation and reduce New Yorkers’ energy bills. With NYSERDA you can:
Additionally, as a New York resident or business owner utilizing solar energy, there are many NY solar incentives and tax credits you can take advantage of.
Bottom line: Many states are committed to helping their residents create a greener, fairer more energy-efficient future, and have invested heavily in doing so. Most services are free to state residents, so If you’re not taking advantage of them, you’re definitely leaving money on the table.
According to move.org, the average monthly electric bill in 2021 in the U.S. is $114.44. You already know that using Perch can help you lower your electric bill. But you can reduce it even further by identifying the energy hogs in your house, and lowering your usage.
Here are cost estimates for the largest energy users based on a 10-cent per kilowatt-hour rate.
There are lots of ways to trim your electrical usage without experiencing any discomfort—or breaking the bank. To truly take your energy-effiency game to the next level, check out our ultimate guide to saving on your electric bill. Here are a few of the more common, effective ways.
Bottom line: While Perch takes care of lowering your electric bill, you can take care of lowering your usage. The planet—and your wallet—will thank you. Let Perch help you lower your electric bill for good
At Perch, we’re making cleaner energy more accessible, more affordable, and more equitable for all, by making it the easy choice. Let us take care of everything, so you never miss out on supply options, energy efficiency programs—or savings. Take advantage of our Community Solar offering. Or our automated matching technology, for vetted suppliers that offer the cleanest, most affordable plans based on your preferences. Learn more about Perch's mission here.