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September 28, 2023
Energy efficiency and green power have been popular buzzwords recently, but what about energy arbitrage? What is energy arbitrage?
Simply put, it’s an energy-saving method that doesn’t rely on solar power. Instead, energy arbitrage takes advantage of differences in electricity prices at different times of day. Businesses and homeowners can save money on their energy bills by buying cheap energy during off-peak hours and selling it during peak hours.
Follow along as we dive deeper into the concept of energy arbitrage, exploring how it works, the benefits it offers, and other sustainable solutions you can use to save money while helping the environment.
What is Energy Arbitrage?
Energy arbitrage is the practice of storing energy when it’s cheap and then using it when it’s most expensive. In other words, it’s like buying low and selling high in the stock market. But instead of buying and selling stocks, you’re buying and selling energy.
It’s a simple but effective way to make the most of the natural energy resources that are already available. With energy arbitrage, you don’t need to install solar panels or conduct other expensive energy efficiency upgrades. Instead, you simply need to take advantage of the fluctuations in energy prices throughout the day.
One of the key benefits of energy arbitrage is that it helps balance the energy grid, which is essential for maintaining a reliable and stable energy supply. By taking advantage of these price fluctuations, energy arbitrage helps reduce the amount of energy produced during peak hours, ultimately reducing the need for dirty fuels like coal often used.
As such, energy arbitrage is one of the simplest ways to get started in energy efficiency without costly solar power upgrades.
How to Be Energy Efficient
If you’re asking, “What is energy arbitrage?” you likely enjoy saving energy and money. Whether for your wallet or the environment, you’re probably interested in an energy-efficient lifestyle.
It’s easy to see why. By reducing your energy consumption, you can lower your energy bills and help fight climate change at the same time. While solar power is a popular way to generate your own energy, there are other ways to be energy efficient without it.
Ultimately, we do suggest installing solar panels. However, if you’re unable to do that or are looking for ways to save energy in the meantime, here are just a few ways.
Upgrade Your Appliances
Older appliances use more energy than newer ones, so upgrading to Energy Star-certified models can save you a ton of money on your energy bills. These appliances are designed to use less energy than standard models, which not only saves you money but also helps to reduce your overall carbon footprint.
Install Energy-Efficient Lighting
Switching to energy-efficient lighting is an easy way to reduce energy consumption without investing in solar panels. LED bulbs use far less energy than traditional incandescent bulbs. They also last longer, so you’ll save money on replacements over time.
Invest in Energy-Efficient Windows
Replacing old, drafty windows with energy-efficient ones can reduce heat loss and save you money on heating bills. Energy-efficient windows are designed to keep warm air inside during the winter and outside during the summer, keeping your home at a comfortable temperature year-round without relying on excessive home energy usage.
Join Solar Buyback Programs
Love to save money on energy? Want to save energy and cash at the same time? Energy arbitrage is great, but you can also install solar panels and sell us back the extra energy you don’t need – that’s the basic idea of a solar buyback program.
Solar energy can be stored in batteries, but not all the energy is needed. To get value from extra energy, many electrical utilities offer solar buyback programs, allowing homeowners to sell their unused excess power back to the grid. This allows homeowners to earn money on the energy they generate but don’t use.
At Chariot Energy, we offer a solar buyback program that allows you to earn credits for the excess energy your panels produce. This means that any energy you don’t use during the day gets sent back to the grid and is credited to your account. These credits can then be used to lower your energy bills in the future.
Best yet, these credits don’t expire as long as you’re a Chariot Energy customer. So, you can accumulate credits over time and save even more money on your energy bills.
Of course, there may be times when your panels aren’t producing enough energy to meet your needs. In these cases, you’ll need to draw energy from the grid. But with our low, fixed energy rate, you can rest assured that you’ll always get a great deal of the energy you need.
Who Benefits From Buyback Programs
But installing solar panels requires a significant investment upfront, and for those looking to make the investment worthwhile, it can take several years to see returns on investment. That’s where solar buyback programs enter into the equation.
Who benefits the most from these programs, though? Homeowners or businesses that consume a lot of electricity, particularly those home during the day, will likely see the most significant savings. Those installing solar panels in areas with high electricity prices will also benefit, as they will sell back electricity at a higher rate.
What about energy arbitrage? Why not just stick to that? While energy arbitrage can effectively reduce your energy bills in the short term, solar buyback programs offer more significant savings in the long run.
By recouping your investment in solar panels and potentially earning profit from selling your excess solar energy, households and businesses can enjoy significant savings over the years. Plus, it’s even better for the environment, making it a real win-win.
Get Solar Credits
So, what is energy arbitrage? A great way to save on energy if you don’t have solar panels. However, solar buyback programs typically offer better long-term savings than energy arbitrage if you do have solar panels.
By working with Chariot Energy, you can enjoy the cost savings and environmental benefits of solar power without any of the hassle. Ready to get started? Enter your zip code here to see your solar buyback program rates!
