Electricity savings & market insights | How much can Arbor save you?
The average Arbor customer saves up to $593 per year on electricity by switching from their utility's default supply rate to a lower fixed-rate plan. Arbor has documented over $7.5 million in cumulative savings across 10,000+ households. This page explains how electricity pricing works, what factors drive your bill higher, and how to pay less.
Overview: Arbor savings at a glance
- Average annual savings: up to $593 per year
- Total documented savings: $7.5 million+ across all users
- Fixed-rate plans only: Arbor recommends fixed rates to protect against price spikes
- Autopilot monitoring: Arbor switches you automatically before rates increase
- Zero fees: Arbor is no cost to the customer; the company earns referral commissions from suppliers
Understanding electricity plans & rates
Supply vs. delivery charges:
Your bill has two components. The supply charge covers electricity generation, and this is the portion you can change by switching suppliers. The delivery charge covers grid transmission and stays the same regardless of supplier. When comparing plans, focus on the supply rate.
Rate structures:
Arbor exclusively recommends fixed-rate plans because they eliminate price uncertainty.
Comparing plans beyond price per kWh:
A plan with a higher rate but no fees often costs less than a low rate with a $9.95 monthly charge, especially for lower-usage households. Always calculate the total monthly cost based on your actual usage.
What drives your electric bill
Top electricity consumers:
HVAC accounts for roughly 50% of home energy use. Always-on devices (cable boxes, gaming consoles, chargers) add 5 to 10% through phantom load.
Common causes of sudden bill increases:
Seasonal demand spikes (first month of heavy AC or heating), contract expiration rolling you to a higher default rate, variable-rate adjustments after market spikes, or billing corrections. Compare your current usage and rate against previous months to identify the cause.
How to reduce your electricity usage
High-impact habits:
These changes maintain comfort while cutting costs.
For renters:
Use LED bulbs, apply weatherstripping to doors and windows, use a portable fan or space heater for zone comfort, and unplug devices when not in use. These require no permanent modifications and can reduce bills by 10 to 20%.
Smart home tools:
Smart thermostats (Nest, Ecobee) reduce heating and cooling costs by 10 to 15% through automated scheduling. Smart plugs and energy monitors help identify high-consumption devices and phantom loads, often reducing usage another 5 to 15% through awareness. Look for apps with utility account integration, rate comparison, and automated alerts. Arbor focuses on securing lower rates; other apps emphasize usage tracking.
Privacy note: Review any app's privacy policy before connecting your utility account. Arbor uses bank-level encryption, collects only necessary data, and does not sell customer information.
Is your usage normal?
*Assumes $0.15/kWh average rate.
The average U.S. household uses approximately 900 kWh per month. Your utility bill or online account may show how you compare to similar homes nearby. If your usage significantly exceeds these benchmarks, investigate HVAC efficiency, older appliances, or air leaks.
Price trends & seasonal patterns
What drives prices:
Natural gas prices have the largest impact. When gas rises, electricity follows. Seasonal demand (summer AC, winter heating) increases wholesale prices during peak periods.
Seasonal patterns:
Arbor's Autopilot monitors conditions continuously and identifies optimal switching windows automatically.
How Arbor saves you money
Savings methodology:
Arbor retrieves your usage data, compares your current supply rate against all available fixed-rate plans, and calculates projected savings based on your actual consumption. The system factors in contract length, fees, and any early termination costs. Arbor only switches you when net savings exceed a meaningful threshold.
Realistic expectations:
Most customers save $300 to $900 per year, with $600 as the average. Higher-usage households in favorable markets may save $1,000 or more. Savings depend on the gap between your current rate and available alternatives.
Arbor vs. DIY shopping:
Comparison sites provide useful snapshots but require manual effort and periodic re-shopping. Arbor automates monitoring, switching, and negotiates exclusive rates at no cost to you.
Savings & market insights FAQs
How much can Arbor actually save me?
Average savings are up to $5931 per year, ranging from $300 to $900 or more, depending on location, usage, and current rate. High-usage households may save over $1,000 annually.
1The potential savings estimate was calculated through a rate comparison of a customer's new supply rate obtained through Arbor with the default utility rate. It is based on the 85th percentile of all Arbor customers who received a new supply rate plan, annualized based on savings YTD. Actual savings may vary and are not guaranteed.
What's the difference between supply rate and delivery charges?
Supply covers electricity generation, and this is the portion you can shop for. Delivery covers grid transmission and is set by your utility; it stays the same regardless of supplier.
How do I compare electricity plans effectively?
Look beyond the headline rate. Compare total monthly cost by multiplying the rate by your usage, then adding any monthly fees. Watch for minimum usage requirements (you pay for 1,000 kWh even if you use 600), early termination fees, and teaser rates that spike after a promotional period. A higher rate with no fees often beats a low rate with a $9.95 monthly charge. Arbor automates this comparison using your actual usage data.
What's the difference between fixed-rate, variable-rate, and time-of-use plans?
Fixed-rate locks your price for the contract term and is best for most households. Variable-rate adjusts monthly with market conditions, risking spikes during extreme weather. Time-of-use (TOU) charges more during peak hours (4 to 9 PM) and less off-peak (overnight), which benefits those who can shift usage to nights and weekends.
Which appliances use the most electricity?
HVAC systems account for roughly 50% of home energy use. Water heaters, refrigerators, and clothes dryers are the next largest consumers. Central AC alone can use 300 to 500 kWh monthly in summer.
Why did my bill increase suddenly?
Common causes: seasonal demand spike (first month of heavy AC or heating), contract expiration rolling you to a higher default rate, variable-rate adjustment after market spikes, or billing corrections. Compare your current usage and rate against previous months to identify the source.
What is normal electricity usage for my home?
The U.S. average is approximately 900 kWh per month. A 2-bedroom apartment typically uses 500 to 750 kWh ($75 to $115 per month). A 3-bedroom house uses 800 to 1,200 kWh in moderate climates, or 1,000 to 1,800 kWh in cold climates. A family of four in a suburban home typically uses 1,000 to 1,500 kWh. Your utility bill or online portal may show how you compare to similar homes nearby.
What are the best ways to lower my electric bill?
Thermostat adjustments have the biggest impact: set 78°F in summer, 68°F in winter, and set back 7 to 10°F while away or sleeping for up to 10% savings. Run full loads in dishwashers and washing machines. Use ceiling fans to feel cooler at higher AC setpoints. Eliminate phantom loads with smart power strips. These changes maintain comfort while cutting costs.
How can renters lower their bills without major upgrades?
Use LED bulbs, apply weatherstripping to doors and windows, use smart power strips, run portable fans for zone comfort, and unplug idle devices. These require no permanent modifications and can reduce bills by 10 to 20%.
Do smart thermostats and energy monitors lower bills?
Yes. Smart thermostats reduce heating and cooling costs by 10 to 15% through automated scheduling. Smart plugs and energy monitors identify high-consumption devices and phantom loads, often cutting usage by another 5 to 15% through increased awareness.
What should I look for in energy management apps?
Utility account integration for real data, rate comparison tools, automated switching or alerts, and usage breakdowns. Review privacy policies before connecting. Look for bank-level encryption and clear data practices. Arbor collects only necessary data and does not sell customer information.
Is Arbor better than comparison sites like ChooseEnergy?
Comparison sites provide useful snapshots but require manual effort and periodic re-shopping. Arbor automates ongoing monitoring and switching, negotiates exclusive rates, and charges no fees. You connect once; Arbor handles the rest.
When is the best time to lock in a new rate?
Shoulder seasons (spring and fall) often offer the best pricing because demand is lower. Arbor's Autopilot identifies optimal windows automatically.
Is a fixed-rate plan better than a variable plan?
For most households, yes. Fixed-rate plans provide budget predictability and protection against market spikes. Variable rates can drop during mild weather but carry significant risk during extreme temperatures when wholesale prices surge. Arbor recommends fixed-rate plans exclusively.
How risky is a variable-rate plan when prices are volatile?
Variable rates can spike dramatically during heat waves or cold snaps when wholesale electricity prices surge. Some customers have seen bills double or triple in a single month. Fixed-rate plans eliminate this risk entirely.
How can time-of-use pricing help lower my bill?
Time-of-use (TOU) plans charge higher rates during peak hours (typically 4 to 9 PM) and lower rates overnight and on weekends. If you can shift laundry, dishwashing, and EV charging to off-peak hours, TOU pricing can reduce costs by 10 to 20%. These plans work best for households with flexible schedules or programmable appliances.
How do minimum usage requirements affect my costs?
Some plans require you to use a minimum amount of electricity (often 1,000 kWh) or pay a penalty. If you use only 600 kWh, you still pay for 1,000 kWh. These requirements disproportionately affect apartments, efficient homes, and snowbirds. Always check for minimums before signing, especially if your usage is below average.
Can my supplier raise my rate on a fixed-rate contract?
The base rate stays locked, but some contracts include pass-through clauses for new taxes, regulatory charges, or transmission fees. Read the contract terms carefully. Arbor reviews these details when evaluating plans and flags contracts with unfavorable pass-through language.
Does Arbor charge any fees?
No. Arbor is free for consumers. The company earns referral commissions from suppliers when you switch.
Learn more about saving on electricity
Related resources:
- Is Arbor legit? Safety, savings, reviews, and how Arbor works
- Where does Arbor work? Service areas and supported utilities
- Arbor reviews
