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What are the different energy rate types?

There are three main energy rate types: fixed-rate, variable-rate, and prepaid.

Written by Allie Ogletree

Edited by Hannah Whatley

Last updated 03/21/2023

Morsa Images/DigitalVision/Getty images

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Key Points

  • There are three main energy rate types: fixed, variable, and prepaid.
  • Fixed-rate electricity plans require a contract but offer stable prices.
  • Variable-rate electricity plans fluctuate with the market but don’t require a contract.
  • Prepaid electricity plans are paid for upfront but don’t require a credit check or initial deposit.

Frequently asked questions

  • You can lower your monthly electricity bill by investing in energy-efficient updates to your home. Insulate your attic, switch to double-pane windows, caulk and seal any leaks, and switch to a heat pump to start lowering your bills.

  • The best energy plan depends on what you’re looking for in a plan. You may want a 100% renewable energy plan, or you may want to find the cheapest plan on the market. Likewise, you may want to ensure predictability in your electricity bill with a fixed-rate plan, or you may want to avoid a credit check and go with a prepaid plan.

  • SaveOnEnergy is your one-stop shop for the best energy providers and plans in your area. Simply call the number on the screen to speak with an energy expert or enter your ZIP code to explore available energy plans in your area. Use the filters to narrow down your options and find the right plan for your home or business.

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