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What makes CutMyBill better than other solar cost and savings calculators for TEP customers?

There are three key reasons that our TEP solar cost and bill savings calculator is far better than any other solar calculator or solar estimate website on the net for TEP customers;

  • Firstly, whilst most solar panels calculators are really good at forecasting the electricity production you can get from installing solar panels for your home (because they all rely on the pwatts.nrel.gov solar production data) most of them just use a single generic state wide unit cost for electricity in their calculations. Our TEP solar cost and bill savings calculator actually uses our database of each of the available TEP electric rates plans to use more specific electricity cost data. Therefore we can generate much more accurate solar savings analysis.
  • The second reason is that we use DOE (Department of Energy) electricity usage patterns for the TEP service territory, and some very basic questions we ask you about your home to estimate how you use power over the course of a day and the seasons of the year. This allows us to accurately forecast solar savings where time of use electricity plans are available to you. We estimate your electricity usage for each hour of the year and then overlay the known production of solar panels in your area for each hour of the year. Without this level of detail solar panel cost and savings calculators on are inaccurate; and
  • Lastly, before we even consider solar savings, we look for any savings that can be achieved simply by swapping to a cheaper available TEP rate plan. Our software looks for any available TEP rates plan that works our cheaper for your estimated usage pattern. Generally speaking savings from swapping to a cheaper TEP rates plan are only available to those who have larger monthly electric bills but given it only takes a phone call to achieve these savings it is by far the quickest and easiest bill cutting option where it is possible.
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Will installing a solar power system or swapping rate plans save me the most on my monthly TEP payment?

There are almost always far greater cost savings to be obtained from installing solar panels than swapping rates plans but this doesn't mean possible savings from swapping rate plans should be ignored. The other reason we search for your cheapest rate plan is that to forecast total possible savings you could get on your bill you need to take into account both savings that may be available from swapping to the cheapest rate plan and also savings that come from swapping your generation source for some of your power usage to your own solar power.

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How accurate is the CutMyBill estimate of my power usage pattern?

The CutMyBill electricity usage profile estimator is a key part of the technology of why CutMyBill can forecast solar and bill swapping savings so accurately without requiring you to enter your kilowatt hour electricity usage for each month of the year or to upload 12 months worth of power bills.

The way we do this is we use electricity use profiles collected by the Department of Energy for each building type at each weather station across the TEP service territory. Some of the characteristics of your home such as your average monthly power spend and the square footage of your home are used to refine this analysis.

This gives a fairly accurate estimate but it is not an exact estimate. The best way to get an exact estimate of your solar savings and whether or not there are possible savings from swapping rate plans is to speak to one of your local solar companies. Whilst solar companies are experts in solar they also become experts in knowing the cheapest rate plans (both before and after solar) from their local utility companies.

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Three best ways to cut your TEP electric bill

Did you know you can cut your home's energy bill by using flashlights instead of overhead lights? Did you know you can cut your energy bill by doing a home energy audit each hour?

Yes, those are silly questions. Fortunately, you don't need to sacrifice comfort to cut your energy bill by 20% or more. And it could be quick and easy to do.

We hope this article helps you make a solid game plan to cut your TEP energy bill. If you haven't already, we suggest you first read our article on how your energy bill works.

Introducing the Weaver family

To illustrate ideas, we'll show numbers based on typical energy usage for a single-family home in Tucson, AZ (the most populous city in TEP's territory).

Meet our typical family from Tucson: the Weaver family. If you look closely at their picture, you'll see that the dad is also reading this article. The mom and daughter are saving energy by just pretending their tablets are on.

family on couch with devices

Let's see how the Weaver family cut their energy bill by 20%, or $23 per month.

What's a "time of use" rate plan?

As we wrote in the How Your Energy Bill Works article, you could voluntarily switch to one of TEP's three optional time-of-use rate plans.

With time of use, the energy rate varies over the course of the day. How much money you save (or lose) on the time-of-use rate plan depends on when you use energy — and how your energy usage pattern matches up with TEP's rate pricing.

Why does TEP offer time-of-use rate plans?

We could compare the energy grid to the freeway — it can be smooth sailing or bumper-to-bumper depending on the time of day. It's easier and cheaper for TEP to provide energy outside the "rush hour traffic," so time-of-use rate plans signal TEP customers to use more of their energy during other hours.

TEP understands that some customers would respond to time-varying rates while some customers wouldn't — the time-of-use rate plans are optional for the more price sensitive among us (who take control and cut it).

Find out how much you could save with time-of-use. Get personalized results with the Cut My Bill calculator. It's Free and Easy!

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What are the time-of-use rates and time windows?

Here are the rate details for TEP's four optional time-of-use rate plans:

Plan Name: Residential,Time-of-Use - Special (R-201B)
Last Update: July 1, 2013
Fixed Charge: Service Charge: $11.79
Summer (May 1 to September 30)
Rate per kWh
Off-Peak: $0.077
Peak: $0.115
Weekday Times
Off-Peak: Midnight to 2pm, 8pm to midnight
Peak: 2pm to 8pm
Weekend Times
Off-Peak: All hours
Peak:
Winter (October 1 to April 30)
Rate per kWh
Off-Peak: $0.059
Peak: $0.098
Weekday Times
Off-Peak: Midnight to 6am, 10am to 5pm, 9pm to midnight
Peak: 6am to 10am, 5pm to 9pm
Weekend Times
Off-Peak: All hours
Peak:
Plan Name: Residential - Time-of-Use, Super Peak (R-8)
Last Update: June 1, 2014
Fixed Charge: Service Charge: $14
Summer (May 1 to September 30)
Rate per kWh
Off-Peak: $0.075
Peak: $0.182
Weekday Times
Off-Peak: Midnight to 4pm, 7pm to midnight
Peak: 4pm to 7pm
Weekend Times
Off-Peak: All hours
Peak:
Winter (October 1 to April 30)
Rate per kWh
Off-Peak: $0.063
Peak: $0.134
Weekday Times
Off-Peak: Midnight to 4pm, 7pm to midnight
Peak: 4pm to 7pm
Weekend Times
Off-Peak: All hours
Peak:
Summer (May 1 to September 30)
Rate per kWh
Tier1: 00
Tier2: $0.048
Energy in Tier
Tier1: First 1,000 kWh
Tier2: Above 1,000 kWh
Winter (October 1 to April 30)
Rate per kWh
Tier1: 00
Tier2: $0.049
Energy in Tier
Tier1: First 1,000 kWh
Tier2: Above 1,000 kWh
Plan Name: Residential Demand - Time-of-Use (TRRESDT)
Last Update: February 27, 2017
Fixed Charge: Service Charge: $10
Summer (May 1 to September 30)
Rate per kWh
Off-Peak: $0.065
Peak: $0.105
Weekday Times
Off-Peak: Midnight to 3pm, 7pm to midnight
Peak: 3pm to 7pm
Weekend Times
Off-Peak: All hours
Peak:
Winter (October 1 to April 30)
Rate per kWh
Off-Peak: $0.064
Peak: $0.071
Weekday Times
Off-Peak: Midnight to 6am, 9am to 6pm, 9pm to midnight
Peak: 6am to 9am, 6pm to 9pm
Weekend Times
Off-Peak: All hours
Peak:
Plan Name: Residential Time-of-Use (TRREST)
Last Update: February 27, 2017
Fixed Charge: Service Charge: $10
Summer (May 1 to September 30)
Rate per kWh
Off-Peak: $0.103
Peak: $0.143
Weekday Times
Off-Peak: Midnight to 2pm, 8pm to midnight
Peak: 2pm to 8pm
Weekend Times
Off-Peak: All hours
Peak:
Winter (October 1 to April 30)
Rate per kWh
Off-Peak: $0.102
Peak: $0.109
Weekday Times
Off-Peak: Midnight to 6am, 10am to 5pm, 9pm to midnight
Peak: 6am to 10am, 5pm to 9pm
Weekend Times
Off-Peak: All hours
Peak:
Summer (May 1 to September 30)
Rate per kWh
Tier1: 00
Tier2: $0.009
Tier3: $0.015
Energy in Tier
Tier1: First 500 kWh
Tier2: Next 500 kWh
Tier3: Above 1,000 kWh
Winter (October 1 to April 30)
Rate per kWh
Tier1: 00
Tier2: $0.009
Tier3: $0.015
Energy in Tier
Tier1: First 500 kWh
Tier2: Next 500 kWh
Tier3: Above 1,000 kWh

The 1st rate plan above (R-8) is the best time-of-use option for the Weaver family (we'll discuss why below). We'll focus on this rate plan going forward (to keep this article under control).

Who's the R-8 time-of-use rate plan best for?

Two of the three expensive weekday peak-time hours are in the evening (the peak window is 4pm to 7pm), so it's better for families with evening activities out of the house, and an aversion to cooking. It's not as good for those who prefer relaxing in the electric jacuzzi after work and school, followed by homecooked meals.

Should we switch to the time-of-use rate plan?

Let's figure out whether the Weaver family would save money on the featured time-of-use rate plan (R-8)— which should help you determine for your home. This starts with estimating how much of their energy they're likely to use during the expensive peak window (the more they use during peak, the higher their time-of-use bill).

While many utilities now offer their customers hour-by-hour historical energy data (commonly called interval data or Green Button data), TEP doesn't. If available, we'd use this historical energy data to confidently estimate the Weaver family's energy bill on the time-of-use rate plan. We'll instead base our estimate on the energy profile of a typical family in Tucson. (Consider asking TEP to sTEP up their game and make your historical hour-by-hour data available to you: 520-623-7711 or TEP contact form.

Let's consider the Weaver family's energy usage during summer weekdays, in the context of the time-of-use rate plan.

They more energy per hour during the discounted off-peak hours (that's good for their bill). On top of that, there are more off-peak hours in the 24-hour cycle (also good). The time-of-use rate plan is sounding good!

It gets more complicated, because the time windows are different in the winter and on weekends — and the Weaver family uses energy differently across the week and year.

Here's how the math works out: The Weaver family's average monthly bill on their current rate plan (code name: TRRES) is $114. Their average bill on the featured time-of-use plan (R-8) would be…drum roll…$89.

Is it worth switching rate plans to start saving $26 per month immediately? Absolutely! And as we'll see below, switching to time of use will put the Weaver family in a better position to save even more money going forward.

Find out how much you could save with time-of-use. Get personalized results with the Cut My Bill calculator. It's Free and Easy!

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Is it worth adjusting our energy habits?

Time-of-use rate plans give you more control over your energy bill. You can save more money if you're willing to adjust how you use energy. For example, you could set an alarm for 3am to get up and run the dishwasher. Just kidding. Let's consider a reasonable way to adjust energy, and decide if it's worthwhile.

Recall that on the featured time-of-use rate plan (R-8), the summer weekday peak window (with the most expensive energy) is from 4pm to 7pm. The Weaver family runs the dishwasher and clothes washer/dryer around 5pm. At the peak rate of 19¢, the combined cost for cleanliness is $17 per month (not including water heating).

After reading this article, the Weaver family sets the washing machines to start at 7pm. The new charge is $7.32 per month — a $9.68 bill reduction. Is it worth it? It is for the Weaver family!

Hello, "Smart Home"

The idea behind a Smart Home is that your internet-connected home appliances can be partially or fully automated to reduce your energy bill while also improving comfort. The dishwasher knows when the off-peak window starts and turns itself on then, the air conditioner learns your preferences and patterns to avoid over-cooling, etc.

While the Smart Home is clearly the future, it isn't quite the present — we're looking forward to Smart Home devices playing better together (in other words, better technical standards).

How do we switch to a time-of-use rate plan?

To change to a time-of-use rate plan or get TEP's take on it, you can call them or write to them: 520-623-7711 or TEP contact form.

Is it worth using less energy?

We won't rally behind former President Jimmy Carter and tell you to put on a sweater and turn down the thermostat. We'd rather not see our breath in the living room. But it's probably worth taking 5 minutes to consider whether energy is wasted in your home (in other words, is energy used that doesn't improve your family's well-being).

The Weaver family children have been politely asked to turn off lights when leaving rooms about 17 trillion times. They're generally respectful, but for whatever reason this one doesn't stick. How much money would the Weaver family save if the children always turned off their lights?

Three 30-watt lights get left on in empty rooms 2 hours per day on average. That's 5.5 kilowatt-hours per month (3 x 30 x 2 x 30.4) — which costs 56¢. Is it worth continuing the effort (or trying a smart-home solution)? Nope. The parents will let this one go for now.

What about energy efficiency?

There might be one or more basic energy-efficiency investments you can make that'd cut your energy bill while not reducing comfort or adding day-to-day complexity.

The Weaver family got a new refrigerator a decade ago, and plugged in their previous 1990s-era fridge in the garage (for those three sports drinks). Refrigerator efficiency has come a long way since the 1990s. In fact, their garage fridge uses over twice as much energy as their new Energy Star fridge. It'll cost them $8.45 per month to run it on their new time-of-use rate plan (or $11 per month on the standard rate plan).

Should they replace the old garage fridge with a basic $500 Energy Star fridge? They'd save $4.65 per month on their energy bill, but the related financing payment would be $9.55 per month ($500 borrowed, 5-year term, 5.5% interest). Their net loss in the first month would be $4.90. With the financing cost, the new fridge would pay for itself in 10 years.

The Weaver family decided they don't need even a second fridge. That's a $8.45 monthly bill reduction!

The Weaver family's game plan so far

The Weaver family has felt the pain of high energy bills for years. Thanks to this article (we have no shame), they're now ready to take control and cut it. Sounds like fun!

Their current average monthly bill is $114. Here's their game plan:

  • 1. Switch rate plans
  • Switch to a time-of-use rate plan (code name: R-8).
  • When: Right after reading this article and making their game plan.
  • Bill Reduction: $26
  • New Monthly Bill: $89
  • 2. Adjust energy usage
  • Run the dishwasher and laundry machines during off-peak hours.
  • When: Once they switch rate plans.
  • Bill Reduction: $3.66
  • New Monthly Bill: $85
  • 3. Reduce energy waste
  • Unplug the garage fridge (and schedule a recycling-center pick up time).
  • When: This week.
  • Bill Reduction: $6.52
  • New Monthly Bill: $78

One week later, the Weaver family's new monthly bill is $78. They cut their bill by 31%!

They're excited, and in their enthusiasm they're wondering if they can cut their bill even more. That's when little Suzy got a bright idea. "Hey Mom and Dad, what about solar energy?"

Yeah Suzy, what about solar energy?

"Hmm…it's probably too expensive." The Weaver family wanted to at least consider it, so they connected with a few local solar installation companies through Cut My Bill. They were happy to hear that solar energy is affordable — in fact, it's less than half the cost it was just ten years ago.

They learned that 18 solar panels would fit nicely on the sunniest part of their roof (at 250 watts per panel, that's a 4.5 kW system). Their solar system would bring their average monthly energy usage from 790 kWh down to 213 kWh. And it'd bring their monthly TEP energy bill from $78 down to $34.

A federal tax credit would cover 30% of the solar system's cost.

Alas, solar energy isn't a slam-dunk investment under TEP (at least not for the Weaver family). Including the payment on a home-equity loan used to purchase the solar system, the Weaver family would be paying an extra $13 for energy in the first month. In other words, their post-solar utility bill + the solar loan payment would be 16% higher than their utility bill with just the other changes.

The solar system would save them more as energy rates go up. Meanwhile, their loan payment would stay the same over the 20-year loan term. The solar investment wouldn't become cash positive until its 18th year.

In the interest of helping out the planet, increasing their property's value, and paying TEP less, the Weaver family still went solar.

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Weaver family conclusion

If they took no action, the Weaver family would be paying $114 per month for energy. The rate plan change and energy adjustments got their bill down to $78 per month. With solar energy and the loan payment, the Weaver family's new net energy cost is $91 per month. All together, they cut their monthly energy cost by 20%, or $23.

The Weaver family is feeling good! Here they are monitoring their real-time solar production and utility energy usage.

family on lawn with devices

Energy bill reductions = tax-free income

That $23 of extra cash is actually worth $32. What? The Weaver family has to pay income tax on money used for personal expenses (including their energy bill). Since they no longer need to pay $31 in taxes on the $80 they're not giving TEP, that $80 is essentially worth $112 (an extra $31). After the solar loan payment, their net tax savings is $9.02. You're a champion for getting through this paragraph.

The simple take home is that, dollar for dollar, energy bill savings (money not spent) is more valuable than the return on conventional investments such as stocks and treasury bonds (taxable income).

Your game plan

We hope this article convinced you that you can have your cake and eat it too — you can save money, improve your family's well-being, and help out the planet. We wish you the best with your upcoming power moves (pun intended).

Click HERE to see how much you can save by and installing solar panels. The Cut My Bill calculator is free and easy.

Find more about Tucson Electric Power (TEP) electric rate plans.