Learning from Your Electric Bill to Save Money on Electricity
You might think of your electric bill only in terms of the final number you owe, but there are a number of metrics and pieces of information you can use to analyze your electricity usage and make habit changes to cut back and save money over time.
If you’re surprised at the price of your electric bill, your first assumption is probably that you’ve used more electricity over the course of the month in question. While this is usually the case, it could also be attributed to a higher rate, or an estimation based on your previous household usage in years past.
Look at these features on your electric bill to analyze your usage and charges:
- Electricity used. This is the most important factor for most electric bills. This number is most often taken from a direct meter read, performed by a representative of your utility company. However, the number may be based on a utility company’s estimation, if an actual meter read is not possible. This is based on kilowatt-hours used.
- Electricity rate. The rate is the amount of money your utility company charges you per kilowatt-hour used. This number can fluctuate based on overall demand and seasonal changes. Remember, not all utility companies are alike; make sure you use Star Energy Partners’s Energy Comparison Tool to compare electricity offers.
- Average daily use. This number will let you know about how much electricity you use per day.
Once you have this information, you can estimate which appliances use the most energy, and cut back accordingly to save money on electricity. If you can lower your daily electricity consumption, the savings add up dramatically over the course of each month.
