How To Read Your Energy Bill


Trying to make sense of your electric bill? It probably isn’t easy. If you really want to understand it, we provide details below. If your goal is simply to reduce it, start here:

Control Your Bill By Reducing Usage

Electricity is measured in kilowatt-hours or “kwh.” This is an amount of electricity, like gallons of gas or gigabytes of mobile data. Somewhere on your bill the amount of kwh is listed. A typical home uses 500 – 2,000 kwh per month.

The single best way to control your bill is to reduce your kwh consumed. Here are the most impactful ways to do that:

Use A Programmable Thermostat

When you’re not home, set the temperature back. These thermostats usually pay for themselves in 9-24 months.
Wifi or smart thermostats you can program — and even remotely control — from your smart phone.  We suggest the Sensi for about $100.
Sensi Thermostat

Some smart thermostats even have a sensor to tell them when somebody is home or not, so they’ll set back the thermostat automatically, instead of you having to program it. Try the Nest (~ $225) or ecobee3 Lite (~ $175).

Google Nest Thermostat

Go Solar

Every kwh you get from the sun is one you don’t buy from the utility. You can get an income tax credit, perhaps a third of the cost of most solar systems.hen you’re not home, set the temperature back. These thermostats usually pay for themselves in 9-24 months.

Solar generally pays for itself after 5-8 years. Some states (like CA, CT, MA, NY) have additional incentives that make solar even more affordable, so that it pays out in 3-5 years.

After that you get free electricity until the system wears out–commonly 20-30 years! And you even have solar options if you don’t put solar panels on your rooftop.

Reduce Your Rate

Also, you may be able to reduce your rate per kwh used if you buy from an alternative supplier, other than your utility.

You have options if you’re in any of these states: CT, IL, MA, NJ, PA, TX and a few others. Click on a state to explore your alternatives.

Still Want To Understand Your Bill?

Most utilities don’t really want you to understand your power bill, because they make more money the more electricity you use. But Splendergy’s motto is “Power to the People.” We’re here to help you understand your electric bill–and take control of it.

Utility bills differ widely, but most have three main kinds of charges. It’s probably best to ignore the other charges on your bill. They’re generally small, and there’s probably nothing you can do about them. To understand your own bill, go to the most detailed page and look for.

Customer charge, meter charge, etc. This is a flat monthly fee, commonly between $10 and $50. If you’re connected to the power grid–and who isn’t?–you have to pay this charge.

Delivery charge, transmission charge, distribution charge, etc. Often, this is more than one line item in your bill. It may be a flat fee(s), or it may be based on your peak or monthly usage. Unless it’s a flat fee, managing your usage is the best way to reduce this part of your bill. (See above.)

Usage, consumption, generation, supply, fuel, etc. This is the most variable part of your bill, based on how much energy you consume. Sometimes these are tiered rates, with different prices for different parts of your usage. Don’t be confused by this, the point is the same: You can take control of your usage! We tell you how above.

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