The direct to grid solution is a practical option for some clients today. It is a unique method of purchasing electricity that provides end-users access to wholesale prices with the actual costs of electricity passed through. This purchasing model is also beginning to take hold in some regulated energy markets where clients don’t have an option to purchase competitive energy supply.
How does direct to grid work?
Freedom Energy provides access to wholesale electricity prices that are passed on to our clients. In addition, our team actively manages client accounts by continually monitoring and advising on market conditions, recommending solutions based on risk tolerance and price, and informing clients of potential Annual System Peaks.
The wholesale price of electricity changes in Real-Time every five minutes based on demand. The price settles hourly, which is known as the Locational Marginal Price (LMP). Each month hourly usage is priced at the hourly LMP. Overall rate of electricity is specific to account and usage habits.
Benefits of Direct to Grid include:
- On average, clients can save 10-15% against retail electricity rates.
- Actual wholesale cost of electricity is tied to your specific demand.
- You can take advantage of off-peak pricing when demand is low.
- You can reduce your capacity costs by managing use during the Annual System Peak.
- There is no long-term commitment. It’s an unmatched 30-day contract.
- You have the flexibility to change the procurement method.
- We can assist and add Fixed Price block options blending with the real-time prices.
- Invoicing is transparent, with all costs as separate line items.
- There is no risk adder insurance.