Like Texas, Pennsylvania state has a robust deregulated power market that allows customers to choose energy providers. Finding one with the lowest rates can be a daunting task. This article provides a guide on how you can go about it and what you need to watch out for when choosing a provider.
What Is The Average Pennsylvania Electricity Rates in July 2024?
The average electricity rate in Pennsylvania according to the Energy Information Administration (EIA) is 17.95 cents per kilowatt-hour. The rate is however 6% higher than the national average which stands at 16.88 cents per kWh.
Unlike residential average, the commercial average is lower standing at 11.49 cents per kWh. This is because most businesses use electricity during the off-peak hours. Most also incorporate renewable sources such as solar panels. The rate is in fact lower than the national average which stands at 12.66 cents per kWh.
Energy Plans You Can Choose in Pennsylvania
Like other states, Pennsylvania affords its residents with several energy plans. They include the following:
- Fixed-rate plans: With fixed-rate plans, you receive the same bill throughout the contract. This means you’ll not make the most out of off-peak hours when the rates are lower than normal. However, it offers the most stability as you can predict your monthly bills. Most fixed-rate plans range from six months to three years. And if you terminate the contract before expiration, most electricity providers will charge you an early termination fee (ETF).
- Variable-rate plans: With variable-rate plans, the rates are not the same. They fluctuate depending on the market conditions. If the demand is lower, the rates reduce. When the demand increases, the rates also increase. While they are the riskiest, they offer much-needed flexibility allowing you to take advantage of off-peak hours. Luckily, such a plan does not attract the early termination fee if you want to switch to another provider.
- Prepaid and no-deposit plans: Like Texas, Pennsylvania energy providers need a customer to meet a certain credit score threshold. Failure to meet the requirement, you’ll have to pay a deposit. You can skip this step by subscribing to a prepaid plan that does not require you to pay a deposit.
- Renewable energy plans: If you want to use renewable energy sources, you can consider working with providers that offer renewable energy plans. They range from wind to solar power. Most will provide a certain percentage, but others provide 100% rates.
Average Electric Bill in Pennsylvania
On average, a typical Pennsylvania household consumes 854 kWh per month according to the EIA. As such, the average monthly electric bill is $153.29 per month since the average electricity rate is 17.95 cents per kWh.
Understanding Deregulation in Pennsylvania
After the Pennsylvania Public Utilities Commission conducted a study in 1994, it formulated the “The Report and Recommendation on Electric Competition” report with the aim to encourage the state assembly to consider deregulating the state’s energy market. This was in a bid to create a free market with stiff competition providing consumers with many options.
In 1996, the Electricity Generation Customer Choice and Competition Act ascended deregulation, which saw existing monopolies split into different energy providers. The deregulation was gradual with one-third of the state’s consumers choosing their provider of choice in 1999. The rest were given the freedom in 2000 and 2001 respectively.
The 1996 deregulation split public utility companies from energy providers. Now, residents of Pennsylvania can choose an energy provider based on terms, rates, and other factors. They cannot, however, choose a public utility company.
Pennsylvania is touted as having the best deregulated power market surpassing Texas.
The Difference Between Utilities and Energy Providers
While deregulation has been in effect since the late 1990s, few residential and commercial consumers know about it. To understand how deregulation works, you should understand the difference between utilities and energy providers.
Public utilities are responsible for maintaining power infrastructure such as power lines and poles. They also ensure seamless delivery of electricity to your home. They are the technicians that repair lines in case of a power outage. The most popular include West Penn Power, Met-Ed, Penn Power, Penlec, Duquesne Light Company, and PPL Electric Utilities.
Energy providers on the other hand buy electricity wholesale from generators and sell it to you. There are many providers, fostering a competitive market. They offer different rates and terms to attract customers. While you cannot change your utility company, you have the freedom to choose and switch to different energy providers. Most notable energy providers are Public Power, Entrust, and Direct Energy.
Renewable Energy Options in Pennsylvania
Like Texas, Pennsylvania gets some of its electricity from renewable sources. In 2020, 4% of Pennsylvania total power came from renewable sources such as wind, hydropower, and biomass. Of the three, wind energy was the leading source of renewable energy. It generated about two-fifths of the energy.
And as of 2021, the state had 26 wind farms producing up to 1500 megawatts of energy. Pennsylvania is working on increasing its hydropower production as it has more than 83,000 miles of streams, rivers, and dams.
But that’s not all, it is among the top states that produce energy through biomass resources. Most of these resources are from landfill gas and solid waste.
How To Find The Lowest Rates in Pennsylvania
Thanks to the robust deregulated energy market in Pennsylvania, residents and businesses have the freedom to choose their most preferred energy provider. You can choose depending on the lowest rates, terms, areas they serve, and more. Here is a guide on how you can choose the provider with the lowest rates in Pennsylvania.
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Use an Online Comparison Tool
We recommend searching for an energy provider online since you can compare their rates and services extensively. Simply enter your zip code and follow the prompting.
Most online comparison tools will provide a lengthy and detailed list of all available providers in your area. You can directly compare their terms, rates, reputation and more to find the one with the lowest rates.
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Weigh Your Choices
While it may seem a walk in the park, switching energy providers is a crucial step that you should not take lightly. Take your time and consider your choices. What do you want to change? Answering this question will enable you to make an informed decision.
And since Pennsylvania’s deregulated market is highly competitive, most providers will entice you with offers and discounts that can mislead you. The discount and offers may become effective after you’ve reached a specific energy usage range, which can take months.
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Request a Quote
Before you can commit to a provider, consider requesting a customer quote since their offer might not be what you need, especially if you are a commercial customer. Most Pennsylvania providers will complete a comprehensive review of your energy usage habits. They then use the information to create a comprehensive rate and plan that suit your energy needs.
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Make the Switch
Once you have reviewed the quote, you can make the switch official. The new provider will send you an email with the contract’s details. Review it carefully to ensure it is what you paid for. The new provider will also contact the old provider about your switching.
How To Save on Energy in Pennsylvania
To save on energy in Pennsylvania, you can consider install a solar panel such as the BLUETTI PV420 Solar Panel | 420W. The 420W output power can provide ample energy to power most of your appliances during the day. And since it has a 23.4% conversion rate, you can expect much-needed efficiency.
Solar panels are however useful during the day only. That said, you can choose to use it for energy-intensive activities during the day such as grilling or cooking.
If you however want to reduce your electricity bills significantly, consider installing a home battery backup. It allows you to store excess electricity produced by your solar panels during the day. Furthermore, you can charge it using AC during off-peak hours.
An ideal option can be the BLUETTI EP900+B500 Home Battery Backup. It is ideal for whole house powering thanks to the 10kWh capacity which can be increased to 20kWh with expansion batteries. In fact, if installed with a robust solar system, you can live off grid.
The BLUETTI 2*AC300 + 2*B300 + 1*P030A | Home Battery Backup is also another battery backup you can install to save on electricity bills. It has a high capacity of 3072Wh and thanks to the modular design, you can increase it to 12288Wh. With multiple outlets, you can power different devices simultaneously. The provided ports allow you to charge it with solar, AC outlets, and other sources.
As you can see, using a home battery backup is the most practical way to save on electricity bills in Pennsylvania.
Final Thoughts
When choosing an electricity provider, consider their rates, terms, and area of service. And since there are many providers to choose from, watch out for pesky promotional materials. Consider installing a home backup battery to save on electricity bills.
