Monthly vs Yearly Energy Contracts: What’s the right one for you?
When looking for a new reliant energy plan, you will come across one common denominator, contracts. The vast majority of energy providers offer a contract for their services, whether it is monthly, bi-monthly or yearly. Contracts are often a key factor in determining which provider you will go with and what price you will pay for your electricity.
With so many options to choose from, how do you know which one is right when making the decision between monthly vs yearly energy contracts for your energy plan? Well, first you will need to have a full understanding about both types of contracts and their benefits and downfalls. Once you know more about the contracts offered to you by electricity providers in your area you can make a confident decision in the plan and contract that you choose!
A monthly contract is a short-term commitment. You can often find these contracts for between one and six months in length, depending on the provider and your location. Monthly contracts offer the flexibility of short-term price fluctuations from month to month, but when your contract expires, you will need to sign a new one in order to continue receiving your energy supply.
Perks of Monthly Contracts
One perk of signing a monthly contract is that it can provide you with added discounts for paying upfront. Many providers also offer a credit when compared with the price of the energy supply in the current month. These perks require you to pay for your entire bill at once, but they can be a great way to save money.
Monthly contracts also allow you to take advantage of rewards and incentives offered by your provider. If you sign up with an energy supplier that offers discounts or benefits for using less energy during peak hours, you can get the most out of your plan by signing up for a monthly contract.
A yearly contract may seem like less hassle than a monthly one, but it offers its own share of pros and cons. The biggest perk of signing on for a yearly contract is that you will never have to worry about early termination fees. If you are sure that your circumstances will not change, a yearly contract can be a great way to ensure your energy supply. However, because there is no limit on the length of time the contract lasts, you may end up paying more if your usage doesn’t change or if rates increase before your contract expires.
Perks of Yearly Contracts
One of the key benefits of signing on for a yearly contract is security. This type of contract allows you to lock in your rate without having to worry about fluctuations in your bill every month, so you will always know how much your energy supply costs.
Power To Choose
Both monthly and yearly contracts have their pros and cons, but the power to choose which one best fits you, is ultimately up to you. Whether you want a yearly contract or a monthly one, know that there are many different types of providers out there, so you have many options to choose from.