Free promotional plans (free nights, free weekends, free holidays) charge dramatically elevated rates during paid hours to offset the free window. The advertised rate often references 1,000 kWh of monthly usage. Below or above that benchmark, the effective rate can be 30 to 60 percent higher than advertised. Most stay-at-home households break even at best on free plans. Lock a flat-rate plan unless your usage clearly concentrates in the free window.
How free promotional plans actually work
Free plans bundle a free window (typically off-peak hours or weekends) with elevated paid-hour rates. The effective average price the customer pays depends entirely on what percentage of their kWh falls in the free window vs paid hours.
The advertised average price (typically shown at 1,000 kWh of monthly usage) assumes a specific load profile. Households whose load profile differs significantly pay more than advertised.
The fine print to read on every EFL
Field 1: paid-hour rate. Often 18 to 26 cents per kWh, dramatically higher than a flat-rate plan at 11 to 14 cents. Field 2: free window definition (exact hours). Confirm the window matches your load profile.
Field 3: minimum usage clause. Some free plans charge a $9.95 minimum usage fee if monthly usage drops below 500 or 1,000 kWh. Field 4: cancellation fee. Often $150 to $300 on promotional plans.
When free plans are actually worth it
EV owners who charge overnight. EV charging uses 20 to 40 kWh per session at home, and if charging happens during the free window, the savings are substantial.
Remote workers with battery storage who can shift major loads. Snowbird households who travel half the year and use minimal kWh during paid hours when away.
Lock the rate before the next reset.
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Quick answers from the editorial desk
Are free electricity plans ever worth it?
What fine print should I look for?
What is the cancellation fee on promotional Texas plans?
Will the rate re-rate after the introductory period?
Further reading