I have always been intrigued about what would happen if I switched to a Free Nights plan and whether I could save money from it. The first thing to understand is that Free Nights plans are not "Free" — the energy provider doubles or more the day rate to compensate for that free window. I decided to give it a shot. For the people that want to try this, assume that it won't be worth it until your data tells you otherwise.
First, I will enumerate the reasons I wanted to try Free Nights:
First, I will enumerate the reasons I wanted to try Free Nights:
- When I searched for plans using my SMT data for 36+ month plans, the first choice was a True Fixed plan (the cheapest in the market — True Power). However, the third plan was a Free Nights plan from Atlantex Power. This plan has 12 hours of "free" electricity (TDU charges still apply).
- I already had a habit of saving electricity during the day. My thermostat during the day sits at 75°F. My house layout also helps me with that: my house is 3,000+ sq ft, 1 story with tall ceilings, and this makes it easier to hold the cool air inside the house.
- I use an Energy Monitor from Emporia , and I know my major electricity consumption is my main AC1, then AC2, and then my pool pump. The rest of the house is not close to that, so I know that if I can shift these major devices to the night, I could save more electricity.
Not all houses are the same as mine. For example, an apartment on the top floor will struggle to keep the unit cool for longer. There are too many variables that make every house unique. For that reason, how can you evaluate whether you might benefit from a Free Nights plan? You can follow the guideline below:
- You need SMT data for any calculation. A few months of historical 15-minute data is enough, though a full year is better because it covers summer and winter. If you don't have your data, or if you just moved to a new place, save yourself the hassle and select a True Fixed plan. Later on, when you have enough data, you can try this guide.
- You need to compare a Free Nights plan against a True Fixed plan, with real values that tell you exactly how much you will save and what your rate will be on each. Sometimes people that enroll in Free Nights see a bill a little bit cheaper (because they are coming from a terribly overpriced plan) and "think" they are saving, without knowing that it could be even cheaper, because they never compared it against the cheapest True Fixed plan. You need to compare with the best plans in the market, and a decent and transparent list must include the plans that are on Power to Choose. Fortunately, here at Clear Energy Facts we have that list, and we also track the majority of the Free Nights plans available in Texas. Now, how to compare them? The Free Nights Calculator does just that. It allows me to compare these plans and tells me exactly which is cheaper based on my usage.
- I mentioned comparing which one is cheaper in the previous step, but how? The analysis from the Free Nights Calculator tells you day by day how much of your electricity falls in the free night window, and it also tells you what percentage is needed to beat the selected fixed plan. The best strategy is to use this tool at least a week in advance. It gives you the opportunity to select your favorite Free Nights plan, start shifting your usage, and keep tracking day by day.
- After a week or more, you will have a nice picture of what will actually happen if you switch. You can make a decision based on that. Now, let's go through these steps based on my case:
Free Nights Evaluation — Case Study — BEFORE
The first thing is to set the baseline. In order to do that, I have a signed-up account at Clear Energy Facts and linked my SMT (you don't need to do this, but it gives me a better idea of what plans work better for me). I am hunting 36+ month plans. The best plan for 36+ months was True Power (the global rank includes all plans, including short-term plans; longer-term plans are slightly more expensive than those but give you a 3-year contract). And the Free Nights plan that I was interested in was Atlantex Power (Rank #5). There was actually one plan that ranked better than Atlantex, Infuse Free Nights (Rank #3), but I was interested in the 12 hours of free energy, especially in the morning when my house is active sending the kids to school.
The next step is to run the Free Nights Calculator, attaching my data, selecting 36+ months, and selecting Atlantex Power and the cheapest plan (I really wanted to compare it with the cheapest available). This gives you a number that you need to beat (after you click Analyze). In order to beat the fixed rate, I need to shift my electricity around 60%, like the figure below:
With the term and plans selected, I can analyze the results:
This is where I was before. My free-hour usage was around 48%, which falls short of the 60% I needed. Keeping my old habits, I would be overpaying by 10% on this Free Nights plan.
Actions taken to improve my free usage percentage
Now that I knew where I was standing, I came up with a new set of habits, mainly changing the hours my biggest devices run. The table below shows my old habits against the new ones.
Changes to My Electricity Usage Schedule
How I shifted major electricity usage into the free-night period.
| Device | Before | After |
|---|---|---|
| Main AC | 10:00 a.m.–8:00 p.m. at 75°F 8:00 p.m.–10:00 p.m. at 72°F 10:00 p.m.–10:00 a.m. at 70°F | 9:00 a.m.–9:00 p.m. at 77°F 9:00 p.m.–9:00 a.m. at 68°F |
| Second AC | Same schedule as the main AC | Same schedule as the main AC |
| Pool filter pump | Running 24/7 2,500 rpm | 9:00 p.m.–9:00 a.m. 3,000 rpm |
| Laundry | Anytime | Only from 9:00 p.m. to 9:00 a.m. |
Key change: Cooling, pool filtration, and laundry were shifted toward the 9:00 p.m.–9:00 a.m. free-electricity window.
Evaluation after 5 days
Once I implemented my new routines, I kept tracking using the same Free Nights Calculator with the new data from SMT. In total I tracked for 5 days, and these were the results:
With my new usage habits I went from 48% of usage to almost 70% every night. With this usage I am beating the best True Fixed plan in the market, as seen in the picture below. My potential new rate will be 9.5 cents per kWh.
Adjusting my habits allowed me to beat a True Fixed plan. The sacrifice works for me, I am comfortable with the new AC settings, and with these calculated rates I am expecting to save at least $400 per year. I am also planning on getting an EV next year, so the savings could be even more.
In summary, and a word of caution
I was able to beat the True Fixed plan, but it doesn't mean that everybody can. Every house is different, and you need to understand that there is always a trade-off. Currently, Clear Energy Facts gives you all the tools you need for this analysis. Try it out, test it in advance before your old electricity contract expires. This same analysis can be done with Free Weekends as well. Good luck.