Utility companies usually charge a variable rate, which means it can change month-to-month. The price per kWh can dip and spike over time, and tends to be much higher in the winter than the summer.
Tomorrow Energy™ may offer both fixed and variable rates. A fixed rate product means that your price per kWh will not change during the length of your contract. This price security lets you know exactly how much your energy will cost. No Surprises. On the other hand with our variable rate product, the rates are subject to change, but you are not locked into a specific term, which offers you greater flexibility.
It’s a common myth that renewable energy is extremely expensive. While that may have been true 20 years ago, that is no longer the case.
Fixed vs. Variable Rates
The price difference
The rates for renewable energy versus traditional energy vary on average by merely a few cents – that’s right, a few pennies. The rate you are eligible to receive for your energy can vary depending on your location, population of your area, and what climate zone you live in.
Changes to your bill
- If you live in the north east, your local utility will continue to issue your bill with Tomorrow Energy listed as the supplier and you will continue to pay one bill to your normal utility company.
- If you live in Texas, you will receive a new bill from Tomorrow Energy
- The fixed rate you select when you enroll will be used to calculate your supply charges.
- The supply portion will go directly toward renewable energy.
How Rates are Calculated
The price of your energy varies depending on a wide variety of factors such as:
- Fluctuations in Energy Generation Pricing
- Energy Market Conditions
- Fixed Rate or Variable Rate Term
- Business Requirements and Conditions
- Fixed and Cyclical Energy Demands
- Supplier Business Costs and Expenses
- Supply and Demand in Your Area
- Supply: What you pay to companies that generate electricity and sell it on the wholesale market. Rates will fluctuate based weather and market conditions for other commodities.
- Transmission: What you pay to transport the supply of electricity supply from its source such as a power plant to the local utility’s receiving station. The government regulates this service to ensure it’s reliable.
- Distribution: The transportation of electricity from the receiving station to your home or business.