Winter is not just coming but has arrived.
As today is officially the first day of winter, let's have a look at some ways you can cut back your energy bills over the coming cold months.
The biggest problem most households face is that we whinge about our energy bills when they arrive, but very few of us make the positive changes required or follow the freely-available advice all over the web.
So the first step in cutting your electricity bill is to do something about it now before you get the bill in a few months' time. You can find many suggestions of how to improve your home's energy efficiency from sites such as Energy Australia, Origin Energy Limited (ASX: ORG), Energex and AGL Energy Limited (ASX: AGL). Even the government has chimed in with their Energy Made Easy website.
Suggestions range from simple ideas such as energy-saving light bulbs and appliances, up to and including installing solar power and solar hot water, installing insulation into your roof and walls, installing double-glazed windows.
But there are several steps you can take that the energy companies don't always highlight.
- Switch some of your appliances to cheaper tariffs. As an example, in Queensland, some residents can switch heavy energy using appliances like water heaters and pool pumps to run at different times of the day (such as outside peak hours). Those tariffs can be as much as a third cheaper.
- In some states energy generated by solar panels first goes toward usage by the household and the excess sent into the grid, for which the homeowner gets paid a small rebate. Be aware of when your solar power system generates the most of its power if the above case applies to you. That may mean using your appliances more during peak solar generating periods, such as turning your dishwasher on at lunchtime rather than in the evening.
The reason is that your energy company may be charging you around 30 cents per kilowatt, but only rebating you as little as 6 cents/kW for your solar energy diverted to the grid, so it makes sense to use as much of your solar-generated electricity as you can. - Energex in Queensland offers cash rebates for peak-smart air-conditioning, hot water and pool pumps connected to cheaper tariffs. Not only do residents save on lower tariff rates, but get a cash reward right away.
- Jump onto the government's Energy Made Easy site and see if there are other energy retailers offering better rates than your current provider. I found several energy plans offering savings of more than $400 off my annual energy bill.
If you don't take the opportunity to do as much as you can to reduce your energy bills right now, you will have no-one to blame but yourself when you get a huge winter energy bill later this year.
One other way you can benefit from consumers continuing to pay high energy bills is to invest in the energy companies themselves. It may provide some consolation when you get that monster bill.
