A bill credit can make an electricity plan attractive at a particular usage level. The useful question is whether your home will qualify often enough for the plan to work over the whole year.
Read the qualifying conditions
Some plans apply a credit only when billed electricity use reaches a threshold or falls within a specified range. Check the Electricity Facts Label for the exact amount, lower and upper limits, and other requirements. Do not assume a credit applies every month.
Two bills, one important difference
Imagine a simplified plan charging 15¢ per kWh with a $50 credit at 1,000 kWh or more. At 1,000 kWh, the calculation is $150 minus $50, or $100. At 900 kWh, there is no credit, so the calculation is $135.
In this hypothetical example, the lower-usage month costs more. It excludes delivery charges, taxes and fees and does not describe a current offer. It shows why a threshold matters. Using extra electricity solely to earn a credit is not a reliable savings strategy.
Look beyond the best month
- Collect 12 months of actual usage if available.
- Mark the months that meet the credit conditions.
- Calculate each month with and without the credit as applicable.
- Compare the annual total with another eligible plan, including all recurring charges.
Bill credits are not automatically good or bad. They need to fit your usage pattern. We help you understand the conditions and compare the cost before you decide to switch.
Further reading: How to compare an electricity plan and its EFL. Always use the specific offer’s EFL and Terms of Service for credit eligibility.