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Some utility plans charge a higher price after a household moves into larger blocks of electricity use. This video breaks down tiered rates and explains how producing solar energy at home may reduce the amount purchased in more expensive tiers.
A tiered rate is different from a flat price per kilowatt-hour. The first block of usage may be priced lower, while later blocks cost more as monthly consumption climbs.
Households with heavy air-conditioning, electric appliances, EV charging, or other large loads may reach those higher tiers sooner. Reviewing a full year of utility bills helps show whether solar could offset the part of usage that carries the highest rate.
Programs, utility policies, equipment availability, and incentives can change. Confirm current terms for your address and consult qualified financial or tax professionals when appropriate.
Mitch: If your monthly electric bill is over $200, you're probably paying for your neighbor's power. But here's how to stop. Your power company uses something called a tiered rate structure. Think of it like this.
That first block of energy you use is cheap, but once you get past that, the next block gets more expensive and the block after that gets even more expensive. So, if you're using a lot of power to run your home, like running a lot of AC, microwaving a lot of nuggets, running hair dryers, or even just showing classic Saved by the Bell reruns, you're forced into those super expensive tiers. Meanwhile, your neighbor who barely uses any electricity stays in that cheap bottom tier. The extra money that you're paying for expensive power is what allows the utility to sell that first tier so cheaply.
You are literally subsidizing their low rates. So, how do you stop paying for it? You stop buying their expensive electricity by putting solar on your roof to generate your own power at a fixed predictable rate. You're no longer at the mercy of their tiered system.
So if you're tired of being tiered, fire the utility company and become your own source of power. That's how you take back control.
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Some utility plans charge a higher price after a household moves into larger blocks of electricity use. This video breaks down tiered rates and explains how producing solar energy at home may reduce the amount purchased in more expensive tiers.
