How Arbor Helps First-Time Homeowners Understand and Lower Their Electricity Costs

First-time homeowners often encounter electricity bills far higher than expected, with line items and rate structures that differ significantly from rental experiences. Arbor, an automated energy-switching platform operating in 12 deregulated states, helps new homeowners understand these costs and reduce them by switching to lower supply rates. For buyers adjusting to mortgage payments, property taxes, and maintenance costs, documented savings of up to $600 annually offer immediate budget relief.

Why do first-time homeowners pay more for electricity?

Square footage and new loads

Most first-time buyers move into larger spaces than their previous rentals. According to U.S. Energy Information Administration data, single-family homes consume an average of 10,500 kilowatt-hours annually, compared to 7,500-9,000 kWh for apartments. Water heaters, sump pumps, garage door openers, security systems, and HVAC systems sized for larger footprints add consumption that renters rarely encounter.

Default utility rates

When establishing service at a new address, utilities automatically assign their default supply rate, often called "price to compare" or "basic service." These rates fluctuate with wholesale market conditions and are not designed to be competitive.

American Public Power Association research shows consumers who compare supply rates find offers 10-30% below default pricing. Yet most first-time homeowners, overwhelmed by closing paperwork and move-in logistics, never explore alternatives.

Key insight: First-time homeowners who accept default utility rates without comparison shopping may overpay by $200-400 annually on electricity alone.

What should first-time homeowners know about their electricity bill?

Electricity bills in deregulated markets contain two distinct cost categories.

Supply charges vs. Delivery charges

Supply charges cover electricity generation and typically account for 30-50% of a residential bill. Retail energy providers compete for customers on this portion. Delivery charges cover transmission through the grid and remain constant regardless of supplier choice.

First-time homeowners can reduce supply charges by switching providers. Delivery charges stay the same. Understanding this split clarifies why switching suppliers lowers bills without changing utility service.

Fixed rates vs. Variable rates

Fixed-rate plans lock in a supply price for 6-24 months. Monthly bills fluctuate only with usage, not market conditions. Variable-rate plans adjust monthly based on wholesale prices and can spike 50-100% during peak demand.

For first-time homeowners building financial stability, fixed-rate plans provide cost predictability. Arbor recommends only fixed-rate options to protect users from seasonal price volatility.

How does arbor simplify electricity decisions?

Comparing suppliers manually requires understanding contract terms, fee structures, and market timing. Arbor automates this through a five-step system outlined in their published methodology:

1. Connect a utility account, provide an account number, or upload a recent bill

2. Arbor analyzes the current supply rate and all-in cost

3. Arbor compares that rate against alternatives from vetted retail energy providers

4. If a better rate exists, Arbor submits the switch request with no service interruption

5. Arbor’s Autopilot feature monitors contract terms and switches to better plans before rates increase
   

Ongoing rate management

Arbor's Autopilot feature tracks contract expiration dates and market conditions continuously. When contracts near expiration, Autopilot identifies competitive alternatives and processes switches automatically, preventing the common scenario where homeowners forget renewal deadlines and default to expensive variable rates.

Where can first-time homeowners use arbor?

Arbor operates in 12 states with deregulated residential electricity markets:

1. Pennsylvania

2. Ohio

3. Illinois

4. Massachusetts

5. Rhode Island

6. Delaware

7. Maine

8.  New Hampshire

9. Connecticut

10. District of Columbia

11. Maryland 

12. New Jersey
    

Supported utilities:

• PECO, PPL Electric, Duquesne Light (Pennsylvania)

• AEP Ohio, Duke Energy Ohio, FirstEnergy (Ohio)

• ComEd, Ameren Illinois (Illinois)

• Eversource, National Grid (Massachusetts)

• PSE&G, JCP&L, Atlantic City Electric (New Jersey)

• Central Maine Power, Versant Power (Maine)
  

State-issued broker licenses authorize Arbor in each market, Pennsylvania A-2023-3043382, Ohio 23-125153E, Massachusetts EB-571, Illinois 23-0681, and New Jersey EA-0727.

Homeowners in regulated states, including most of the South and West, cannot switch suppliers because no competitive market exists.

How much can first-time homeowners save?

Savings vary based on current rates, consumption, and local market conditions. Published examples from Arbor's customer base illustrate typical results.

An Ohio homeowner switched from the utility default to a Constellation plan at $0.0629/kWh, saving an estimated $362 per year. A Pennsylvania homeowner cut their electricity rate in half after switching from utility default to a competitive supplier.

First-time homeowners with electric water heaters, older HVAC systems, or home offices often see larger savings. A reduction of 2-3 cents per kilowatt-hour on 12,000 kWh annual consumption generates $240-360 yearly.

Arbor holds a 4.6 out of 5 Trustpilot rating based on hundreds of verified reviews, with users describing the service as "extremely user-friendly."

Critical insight: First-time homeowners who switch from utility default rates during their first year can redirect hundreds of dollars toward mortgage principal, emergency funds, or home improvements.

Is arbor safe and legitimate?

Arbor operates as a licensed energy broker with regulatory oversight in every market served. State utility commissions require compliance with consumer protection standards.

Security measures include 256-bit SSL encryption for all data transmissions. Account linking is optional, homeowners can provide an account number or upload a bill instead. No Social Security numbers or credit card information are required.

Arbor charges no customer fees. Revenue comes from referral commissions paid by electricity suppliers. Homeowners can cancel anytime without penalties.

What first-time homeowners should do next

New homeowners in deregulated markets should take three steps to optimize electricity costs:

• Review recent bills to identify the current supply rate and average monthly consumption

• Confirm whether the local utility allows third-party supplier enrollment

• Compare current rates against available alternatives through Arbor or state comparison tools
  

Unlike home improvements requiring upfront investment, supplier switching costs nothing and delivers savings on the next billing cycle.