Control Your Energy Costs

Keeping the Lights on

Backup power systems

Unfortunately, recent power outages experienced in Colorado are likely to be more common, but you can prepare in order to prevent loss of food in your refrigerator and freezer, keep the lights and heat and even reduce the cost of your electricity. Power backup systems (generators or batteries) can provide on-demand electricity to keep things working at your house when your utility cuts power or when snow and wind storms knock down power lines.

There are two types of systems available: 1) Generators that produce electricity by burning fuel 2) Battery backup systems that store electricity to be used later during outages. Important considerations for these systems are cost, the size of the system, the type of fuel or battery and if you want to use it to reduce electricity costs in general. Costs of small, portable systems can be a few hundred dollars and can be used to run appliances during an outage and for camping. Whole house systems can cost several thousand dollars.

Generators can use natural gas, propane, gasoline or diesel as fuel, and they are noisy, produce air pollution and require regular maintenance and upkeep.

The types of battery systems vary from lead acid, to nickel magnesium cobalt (NMC), to lithium ion (LiFePo4). Lead acid systems are the least expensive and have a shorter lifespan with fewer charges, and only 50% of their rated power can be used before recharging. Lithium Ion batteries are getting less expensive over time, can use 80-90% of their rated power and can last up to 15 years. Systems able to power whole houses can cost about $16,000 installed. The advantage of battery backup systems is that they are not noisy, don’t emit noxious gas, require much less maintenance, don’t require liquid fuel, and can be used to lower your electricity costs.

You can reduce your electricity costs by charging during off peak hours, when power is cheaper and using the battery during peak hours, when electricity can be three times the cost. This is particularly true for solar electricity that is generated during off peak hours. Utilities pay significantly less for excess electricity generated from your solar panels than they charge you for their electricity use during peak time, so saving the cheaper solar electricity in batteries can reduce your need for more expensive power from your utility. In addition, there are significant financial incentives offered by utilities, the State of Colorado and some local governments to add battery backup that can be used in turn by utilities to supplement the grid.

Learn More:

Battery Storage Guide for Homeowners

https://solarunitedneighbors.org/wp-content/uploads/2023/01/Solar-United-Neighbors-Battery-Storage-Guide-1.pdf

Tired of High Energy Costs? A Home Battery Could be the Answer.

https://www.cnet.com/home/solar/tired-of-high-energy-costs-home-battery-could-be-the-answer

Saving by the Hour

How to use time-of-use billing to your advantage

One way that you can save money on your electricity bills is by using the new time-of-use (TOU) billing and minimizing your electricity use during peak hours. Peak hours are usually in the evening on weekdays when there is the highest demand for electric power.

For Xcel Energy in Colorado, peak hours are 5 PM to 9 PM on weekdays. During off-peak hours, utilities that provide TOU billing will offer rates lower than flat rates, but during peak hours the rates will be much higher. Peak hour electricity could be three times as expensive as off-peak electricity. To save money with TOU billing, you should shift your most energy-intensive activities to off-peak hours when electricity demand and prices are lowest.

The most effective strategy is to delay high-load tasks like running the dishwasher, washing machine, and clothes dryer until after 9:00 PM. For climate control, which often accounts for over half of home energy use, you can "pre-cool" or "pre-heat" your home just before peak pricing begins and then adjust the thermostat by a few degrees during expensive evening hours to "float" through the peak period.

Owners of electric vehicles (EVs) can see significant savings by programming chargers to operate exclusively overnight. Utilizing smart technology, such as programmable thermostats and smart plugs, can automate these shifts so you don't have to manage them manually every day. By actively moving just 20% of your usage to off-peak windows, you can significantly reduce your monthly utility costs. Because electricity produced during the day is much cleaner than power produced at night, advocates are trying to get midday price signals to encourage daytime charging.

You can estimate your actual savings by looking at your current energy usage in your monthly energy bills.----------------------------------

Information on Time-of-Use Rates:

Black Hills

Residential Time-of-Day rates

https://www.blackhillsenergy.com/efficiency-and-savings/welcome-ready-ev/welcome-colorado-ready-ev/residential-time-day-rates#:~:text=amount of time.-,Estimated energy costs:,the TOD off%2Dpeak rate

Xcel Time-of-use

https://co.my.xcelenergy.com/s/billing-payment/residential-rates/time-of-use-pricing

While many federal programs to help people save on renewable energy and energy efficiency have ended, the state of Colorado's comprehensive portal can help you find anything you might qualify for:

Colorado Energy Savings Navigator | Public Utilities Commission