Why Do Retail Energy Companies Offer Free Electricity?

Free electricity is a relatively new concept. The idea originally came from an early concept called “time of use” plans. They featured two separate energy rates: one rate during the day and another for nighttime and on the weekends. The goal was to encourage people to shift their electricity usage from the daytime when rates were higher due to increased demand to times when demand was low, like at night or on the weekends.

But those plans didn’t last long in the market — mostly because they confused customers. Who wants two separate electricity rates? So, instead of teaching people how to understand a plan with two rates, electric companies did some math: they could offer free nights and weekends to customers while making the daytime rates more expensive.

Thus, the concept of free electricity was born.

These Plans Really Do Offer Free Electricity on the Weekends

Free really means free. With these plans, you aren’t charged for the electricity you use on the weekends. But there are some minor technicalities: 

  • These plans typically have a much higher price per kWh than other types of plans, especially traditional fixed-rate plans. Their main goal is to shift electricity demand from the weekday to the weekends.
  • You still pay the full month’s transmission and distribution charges for the electricity you used. These are the fees from the public utility in your area for the physical delivery of your electricity service via the poles, wires, and meter. 
  • You still have to pay the other fees and charges that typically appear on your electricity bill.

How do you learn more about such charges? Read your Electricity Facts Label (EFL) carefully. This is the legal document every energy company has to create for each of their plans. If you don’t know how to read one, we’ve created a helpful EFL guide that makes them easy to understand.

Free Weekends are Great in Theory, but Hard in Practice

Free is great — but it comes at a cost. These plans typically have a much higher rate than other plans to compensate for the times your electricity is free. At the end of the day, these plans are meant to discourage you from using electricity during periods of high demand — not actually offer free electricity. They want you to use your free electricity during periods of low demand to reduce stress on the electricity grid, but they also charge higher prices during weekdays to discourage you from using electricity during high demand times. 

This is why it can be hard to benefit from these plans. You have to change your lifestyle to truly reap the money-saving benefits from these plans — both how and when you use energy. There are better plans out there.

H2: Our Fixed-Rate and Variable-Rate Plans Are Easy and Affordable

At Chariot Energy, you’ll never have to change the way you live to get affordable electricity. We’re on a mission to change the way people view electricity — and that starts with offering solar electricity for your home without solar panels!

Blaze 6

  • 6-month fixed rate
  • 100% solar
  • No deposit required for qualified customers †
  • Free cancellation within 30 days

Blaze 12

  • 12 months of peace of mind
  • 100% green energy powered by solar
  • No deposit required for qualified customers †
  • Free cancellation within 30 days

Chariot Freedom

  • Month-to-month electricity
  • No contract
  • 100% renewable energy
  • No cancellation fee

Renewable Energy is Just as Affordable as Fossil Fuel Energy

Father and son watering the yard

For years, renewable energy had the reputation for being expensive and not worth the investment. Chariot Energy helps bust that myth by offering clean electricity plans that are just as affordable — if not more so — than electricity created with fossil fuels.

With the help of our affiliates, Chariot Energy has built two massive solar farms in Texas, effectively cutting out the middleman to provide thousands of Texas electricity customers with direct access to solar energy. That’s just the beginning of our ambitious plan to bring solar to everyone and create a brighter future for generations to come.

Click below to enroll in one of our electricity plans and join Chariot Energy in our journey to cleaner energy for all.