Different Types of Business Energy Rates
Many business owners wonder if there are different types of business energy rates. The answer is yes, there are several different types of rates that can be found for a variety of businesses. Each company has its own unique needs and requirements, so it’s important to find the best price for your business that includes what you need, but at the lowest price possible.
Fixed-rate renewable types of rates
are what most business owners focus on when they’re trying to figure out what they can afford for their business’ energy costs. With a fixed-rate plan, the same amount of energy is sent to your company each month; it’s set up that way. This can be a good choice if you know you won’t be changing your company’s location or if you know you won’t have drastic increases in usage. If your company doesn’t fluctuate, then this might be the option for you. These plans typically offer a lower annual percentage rate (APR) than other renewable rates, making them a great option for the majority of companies.
Fixed-rate renewable rates
can also be beneficial if you know your revenues will be stable, regardless of how the rest of the economy is performing. While this can often be true, it’s not always. You may find that your sales are on the rise for a year or two later, even though your energy costs are staying the same. If this is the case, you should look into the possibility of adjusting your fixed-rate plan to better accommodate any fluctuations that might occur. You may also want to find out if your fixed-rate provider offers an option for increasing your energy savings.
There are other options that you may want to consider, as well.
For example, if you think that your electricity bill may be tied to the price of natural gas or propane, you may be interested in looking into the possibility of switching to a non-traditional renewable rate, such as a rate that relies on the Consumer Price Index (CPI). These types of renewable rates are regulated by the U.S. Federal Energy Commission and use a base price that is adjusted every month. This can often result in your monthly bill decreasing over time.
If you are interested in switching
to an “electricity premium” plan, you will still be able to use electricity generated by solar, geothermal, or wind power sources. Although the upfront cost of these types of renewable energy systems can often seem high, they are still far less expensive than using traditional methods of powering a business. Many companies also offer incentives to customers who choose to implement these types of green initiatives, so there may be a good deal of incentive for switching. And depending on the climate in your area, you may even be eligible for a rate decrease if you install an advanced technology source to replace the traditional source of your energy. So it’s never been more economical to switch to green.
Even if your company hasn’t yet made the switch to a green initiative,
it’s never too late to start considering the possibilities. The Federal Government and many states are now offering rebates and tax credits to help businesses become greener. You can research these programs and choose one that will fit your business needs. The most important thing is that you start thinking about the environment and saving money in the process. In the end, that’s more important than being “green.” There are many different types of business energy rates and you must understand them before choosing a plan.