How to Save 40% With Wholesale Electricity
Wholesale. You hear the word and you can’t help but do a little happy dance because you’re thinking, “Woohooo. I’m gonna save some money!” When it comes to Griddy’s wholesale electricity model, savings have historically been great year-after-year – even if you didn’t change your behavior at all.
With savings of 5-25% per year just by going wholesale, you might be asking yourself, "Where do I sign up?"
Whoa, whoa, whoa. Before you click that button, you should know that wholesale electricity does come with risks – as August 2019 very clearly showcases.
Yup! That was one very expensive month! In fact, by far the most expensive month in the history of Texas. Here’s some good news though: Even though August 2019 was the most expensive month ever in the history of Texas, some of our members still managed to save almost 40% in 2019 (Jan-Sep) against the Texas Average (which is based on the EIA rate as calculated by the Department of Energy). And our best members saved almost 40% against the Texas Average in 2018 and 50% in 2017.
So how did they do this?? The secret is simple.
They used Griddy’s suite of tools to do one thing: Use less electricity when the price is high.
It’s as easy as that. Use these tools so you know when the price is high, then use less electricity when that happens. What tools, you ask?
Tools to reduce usage when prices are high
Real-Time Price Dial: You can check the current price of energy at any time in the Griddy app. The price changes every five minutes, keeping you in the know.
Price Alerts: When prices are high (above 30¢/kWh) or low (below 0.1¢/kWh), we will send you push notifications so you can adjust your usage accordingly. That way you will be able to increase your AC by a couple of notches when prices are at their highest.
Projected Prices: We tell you what prices are expected to be for the rest of today and tomorrow. You can see these in the Projected Price bubbles on the Wholesale Price screen. When they are green, it means prices are low and it's a great time to use your high-usage appliance. When they are red, it means prices are expected to be high and to lower usage during these times.
Smart Home Automation: If you have a smart thermostat, or any other smart-home device, you can program it to automatically adjust when prices change. You can set whatever price threshold you choose. So if prices go above 10¢/kWh, you can have your AC turn off. And when prices go back down to 4¢/kWh, you can program it to automatically turn back on. It really is set it, forget it and save. Read more here.
How to reduce usage when prices are high
If prices are going to spike, they generally do so between 1-6 p.m. If you can take these precautions, you can reduce your peak summer usage by 50-80%:
- Adjust your AC in the summer – this can be 30-60% of your electricity usage!
- Check the app the night before. If you see high prices for tomorrow afternoon, pre-cool your home the night before and in the morning. When the prices spike, up your AC by 2-4 degrees. Or turn it off if you can stand the heat.
- Set up your smart thermostat to turn off when prices spike.
- Program your pool pump to run at night when prices are the cheapest.
- Avoid using your washer, dryer or dishwasher during a price spike.
With wholesale electricity, there is the risk of prices going high, but the majority of times they stay low. If you take advantage of all the cheap hours, reduce consumption during the handful of expensive hours throughout the year, you can save upwards of 40%.