As you prepare to rehab your Texas rental property so you can lease it out in late summer, you can't help but wonder how high your electricity bill will be this year -- and rightfully so.
Research shows that electricity prices are expected to rise 2% in 2023, reaching an average of 15.45 cents per kilowatt hour.
Fortunately, there are several short-term electricity plans available that may help with saving money. Let's explore the best electricity plans for those seeking short-term solutions.
One of the most popular short-term electricity plans is the variable-rate plan, also known as the no-contract electricity plan. This type of plan is especially handy for individuals in property management.
That's because this plan will let you pay for your electricity by the month. It doesn't come with a contract, which means there is no cancellation fee.
This means you can spend three months renovating your income property before trying to sell it. You can cover the electricity costs during this period using a variable plan, then cancel it without paying an early termination fee when the property is sold.
In addition, because the plan is flexible, you may change it whenever you wish. If you feel the plan is too high one month, simply switch to a different one that better fits your budget.
A variable plan generally comes with a variable rate. This type of rate can change according to what's happening in the energy market, so your energy costs may decrease or increase based on supply and demand.
The major benefit of a variable plan with a variable rate is that you may experience lower electricity bills. When energy prices drop, you will instantly receive a lower energy bill.
Still, keep in mind that electricity rates are often very volatile in Texas. This means they can move drastically with natural gas price changes or weather events.
Variable electricity rates can be hard to budget for -- a downside for those who like to plan their finances. In addition, if the energy price goes up, your bill will go up, too, and this can place a financial strain on some homeowners.
Nevertheless, variable plans are the best option for homeowners looking for flexibility and the chance to lower their energy bills.
A fixed plan with a 12-month contract term is another popular short-term electricity plan option. It's perfect for anyone who plans to be at their Texas home for only a year.
With this plan, you can receive electricity at a single rate no matter your usage. This means you can use a large amount of electricity one month and still pay the rate you paid the previous month. It's a classic, simple, and predictable plan.
For instance, let's say you use 1,000-kilowatt hours and your rate is 14 cents per kilowatt hour. Your monthly charge will be $140.
If you cancel your contract plan, though, expect to pay an early termination fee. This fee may cost you around $199.
You might also be able to take advantage of a 12-month fixed plan that will allow you to save more money as you use more electricity. For instance, you might receive a price reduction for every kilowatt hour you use over 1,000-kilowatt hours.
This plan might be most fitting for homeowners who use large amounts of electricity each month. In some cases, a homeowner may receive a discount on most of their monthly bill.
There are a few other options for homeowners looking for a 12-month fixed plan that can help them save money in unique ways.
For example, let's say you want to reduce your energy costs during the summer, a peak season for electricity usage in Texas. A featured plan may let you pay 50% of your normal electricity rate between June and September.
This means you can more easily afford your summer energy costs. In addition, your lower rate will stay low since fixed-rate plan rates don't fluctuate.
Another type of featured plan that can help you save money in Texas is a 12-month fixed-rate plan that lets you earn money whenever you pay your power bill. You might be able to redeem your earnings at various locations, like retailers and restaurants. You might also use them to participate in giveaways.
Some energy companies additionally offer featured plans that can help you save money if you use most of your energy at night. These plans are perfect for customers who are focused on saving energy in addition to saving money.
For example, let's say you have a Tesla car. You could charge your car for free each night with this plan option. You can also save money by doing all of your laundry at night versus during the day.
Remember, though, that you'll pay a fee if you have to cancel any of these types of fixed-rate feature plans.
The top short-term electricity plans include variable plans with variable rates. You may also choose a 12-month fixed plan if you plan to be at your home for only a year.
At Ambit Energy, we're excited to offer top-tier short-term electricity plans, like our Lone Star Flex plan. This variable-rate plan is designed for customers seeking the flexibility of paying by the month. It comes with no early termination fee.
Get in touch with us to find out more about our electricity plans, and sign up today!
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