What are usage credits?
Usage credits, sometimes called bill credits, are monthly discounts on your electricity bill for using a certain amount of energy. For example, a power plan might reward you with a $50 usage credit if you use 1,000 or more kilowatt-hours (kWh) of electricity in that billing cycle. The best part about usage credits is that they apply every month of your contract when you meet the requirements. Not all plans offer these credits, but it’s a good idea to sign up for one if you know your average usage level. Every plan’s Electricity Facts Label (EFL) will list any usage credits if they are included in the agreement.
Are usage credit plans a good deal?
Usage credits can be advantageous when they match the consumer’s energy patterns. Remember that to receive a usage credit, you must use the amount of energy outlined in the plan’s EFL. In order for usage credits to be beneficial over the long term, you’ll want to fall into the discounted usage tier every month.
In some cases, usage credit plans can be more expensive if the consumer does not match the discount threshold. For example, if you must use at least 1,000 kWh per month to receive a usage credit, but you typically only consume 500 kWh a month, then this plan would not be a good fit for you because your monthly bill will be higher than anticipated when you signed up.
Usage credit plans on Texas Electric Rates
Texas Electric Rates partners with dozens of top energy providers across the Lone Star State to help you find the best electricity options in your area. The following section highlights a collection of usage credit plans and what kind of customer would benefit the most from each plan.
Gexa Eco Saver Plus 12 plan
This Gexa Energy fixed-rate plan offers a $100 usage credit when you use at least 1,000 kWh of electricity per billing cycle. If your home or business typically uses 1,000 or more kWh each month, this plan could be a great opportunity to save. However, if you don’t meet this threshold, this plan is likely more expensive than other options on our marketplace.
4Change Energy Power Maxx Saver 24
4Change Energy’s Power Maxx Saver plan provides a $100 usage credit when you use at least 2,000 kWh per month. This plan would benefit large households that consume more than 2,000 kWh of monthly electricity. Smaller households would not benefit from this plan as they are unlikely to reach 2,000 kWh of energy.
Frontier Utilities Saver Value 12
The Saver Value 12 plan from Frontier Utilities rewards smaller households with a $50 usage credit when they reach 500 kWh of electricity. This plan is cheapest for small households due to the lower usage requirement. Larger households would benefit more from a different usage credit electricity plan, such as the 4Change Energy Power Maxx Saver 24.
What you need to know about usage credits
Usage credit power plans can be a great way to lower your energy costs when they align with your average consumption levels. The challenge is ensuring that your energy habits match the usage credit — otherwise, you may end up paying more than expected for your monthly energy. If you need help understanding your options, call our team for assistance. Our energy experts can help advise you on which plan offers the most savings for your scenario.
Frequently asked questions about usage credits
What are the main drawbacks to usage credit electricity plans?
The main drawback to usage credit plans is that they can be restrictive. In order to benefit from a usage credit plan, you must fall into the correct usage tier. Otherwise, these plans may be more expensive than other options. Usage credit plans require shoppers to really understand their energy habits. If you need help determining if you would benefit from a usage credit plan, call our team for assistance.
How do I know if a usage credit plan is a good fit for me?
A good way to determine if a usage credit plan is right for you is to check a handful of your past electricity bills. Examine how much energy your home or business typically uses. If you notice that you normally fall within the same consumption range, you can compare this information with available usage credit plans to find the right fit.
What is a good usage credit deal?
Usage credits vary depending on a few factors, such as the provider, contract length, and more. A competitive usage credit range right now is $100 for using at least 1,000 kWh. This is a good deal because 1,000 kWh is close to the average household usage for Texas homes (1,146 kWh, per the Energy Information Administration). If you use less than 1,000, other plans may offer bill credits for using over 500 or 800 kWh.
