Which type of energy contract you have, determines the amount of savings you can achieve with Stekker. In this post, we'll break down which energy contracts exist and how Stekker can help you take advantage of them.
Which type of energy contract you have, determines the amount of savings you can achieve with Stekker. In this post, we'll break down which energy contracts exist and how Stekker can help you take advantage of them.
There are three main types: standard rates, peak and off-peak pricing, and dynamic pricing. In short:
Standard rates: You pay a fixed, flat-fee per kWh
Peak and off-peak pricing: Two periods of pricing: high and low fee per kWh
Dynamic pricing: A constantly changing, hourly price per kWh
These are not standard names - yet. Depending on where you live, other terms can be used, like 'time-of-use contracts' for peak/off-peak contracts, while dynamic pricing contracts are sometimes known as "real-time pricing" contracts. Try to recognize the right type of contract by understanding these three basic models.
In this blog post, we'll dive into the different types of contracts, and how Stekker can help you save most money.
A dynamic energy contract is a type of energy contract where the energy rate adjusts in real-time based on the current market conditions. This means that the rate can fluctuate every hour or even every few minutes, depending on factors such as supply, demand, and wholesale market prices. These types of contracts are a relatively recent offer, but will probably acquire more market share over the next few years.
Dynamic energy contracts can offer consumers greater price transparency and more opportunities to save money by adjusting their energy usage based on the current rate, as it will cheaper to bake a cake when the sun's shining or when a storm has picked up. Electric vehicles already can achieve huge savings this way (one of the founding reasons for Stekker). Advanced consumers with a smart energy management system will also want to switch to dynamic pricing, so they can response to real-time market signals.
However: dynamic energy contracts may not be the best fit for all consumers - as they require more active management and monitoring of energy usage. Consumers who have a flexible lifestyle and are willing to adjust their energy usage based on the current rate may benefit the most from this type of contract. These contracts might also not be available where you are, and in some cases, dynamic pricing may only be available to large commercial or industrial customers. Some residential consumers might have limited options for dynamic energy contracts.
Overall, dynamic energy contracts offer consumers more flexibility and control over their energy costs but require a more active approach to energy management.
A standard energy contract, also known as a flat fee or fixed-rate contract, is a type of energy contract in which consumers pay a fixed rate per kilowatt-hour (kWh) of energy used, regardless of when they use it. This means that the energy rate remains the same throughout the day, regardless of whether it's during peak or off-peak hours.
Standard energy contracts are often the default option offered by energy providers and offer simplicity and predictability to consumers. This type of contract is typically suitable for those who have consistent energy usage throughout the day, as they don't need to worry about adjusting their energy usage patterns to take advantage of peak or off-peak rates.
However, for consumers who use more energy during peak hours, a standard energy contract may not be the most cost-effective option. In such cases, peak and off-peak energy contracts, or dynamic pricing contracts, may offer better value for money. With peak and off-peak contracts, consumers can take advantage of lower rates during off-peak hours, while dynamic pricing contracts adjust the energy rate based on real-time market conditions, offering the potential for further cost savings.
A time-of-use contract, also known as a peak and off-peak contract, is a type of energy contract that divides the day into two or more periods based on the time of day or week. During each period, the energy rate varies, with higher rates during peak hours and lower rates during off-peak hours.
Peak hours typically correspond to periods of high energy demand, such as midday and early evening, when people are cooking, using appliances, and coming home from work or school. In contrast, off-peak hours usually occur overnight and early morning when energy demand is lower.
By shifting their energy usage to off-peak hours, consumers can take advantage of lower rates and save money on their energy bills. For example, consumers can use programmable thermostats to adjust their heating or cooling settings during off-peak hours or schedule their washing machine or dishwasher to run at night.
However, it's important to note that the specific peak and off-peak periods and rates may vary depending on the energy provider and region. For example, some providers may have more than two periods, and the duration and rates of each period may differ. Therefore, it's essential to carefully review the terms and conditions of a time-of-use contract to ensure that it aligns with your energy usage patterns and needs.
Stekker uses these contracts to help you save money on your energy bill and to lower your carbon footprint. As a smart charging app, it utilizes real-time energy data to optimize your EV charging schedule, reducing the need for energy from non-renewable sources.
By scheduling your charging during off-peak hours or adjusting it based on dynamic, real-time energy prices, Stekker can help you reduce your carbon footprint. This is because off-peak hours typically use more renewable energy sources and dynamic pricing encourages the use of renewable energy during times when it's abundant. By reducing your dependence on non-renewable energy sources, Stekker can contribute to a more sustainable future.
Stekker also provides valuable insights on your energy usage. By monitoring your energy usage patterns, Stekker can help you identify areas where you can save money by adjusting your energy consumption. For example, if you notice that you are using more energy during peak hours, Stekker can help you find ways to shift your energy usage to off-peak hours to save money.
Stekker's interface makes it easy to manage your EV charging schedule and monitor your energy usage. You can view your energy consumption in real-time, get an alert when electricity is cheap, and get notified when your charging session is complete. With Stekker, you can have greater control over your energy use and will be empowered to make informed decisions.
Understanding the different types of energy contracts is crucial for managing your energy costs effectively.
While standard contracts offer simplicity and predictability, they may not be the most cost-effective option for all users. Peak and off-peak contracts and dynamic pricing contracts can be beneficial for users who can shift their energy usage to off-peak hours or adjust their energy usage based on the current rate.
By using a smart charging app like Stekker, you can take advantage of these different contracts to save money on your energy bills. Stekker can help you optimize your charging schedule, adjust your charging based on real-time energy prices, and provide insights on your energy usage. With Stekker, you can reduce your energy costs and take control of your energy consumption.
