Delivering clean energy at a fixed price in the US

A new subscription service providing clean energy at a fixed monthly price is designed to bring stability and savings to utility bills, writes Ali Sarilgan, CEO of EcoTrove.

Would you ever subscribe to a service that has prices fluctuating by 50% month-to-month, while providing the same level of value? While your gut might scream “No!” every single household uses a service like this and pays an average of 10% of their entire take-home pay on it.

Geopolitical events, wildfires, unseasonal temperatures, storms, arbitrary utility rate hikes, the list goes on…

Consumer utility bills vary dramatically for reasons beyond the energy users’ control. This unpredictability is both frustrating and financially burdensome, causing around a third of Americans to sacrifice basic needs to pay their utility bills, according to the EIA.

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Why do consumers accept this variability in energy bills but not for other essential services?

Relying on consumers to conserve energy or pay more to replace ageing grid networks is not a valid strategy to combat climate change. But this largely dominates our current energy policies.

In several parts of the US, energy rates are rapidly rising while the payments and incentives for rooftop and community solar are being reduced.

Consumers have a difficult time accessing clean energy at affordable and stable prices and navigating through the complex set of rate plans, incentives and rebates they are eligible for.

This was the thinking behind EcoTrove, with a new subscription service designed to bring stability and savings to utility bills by providing clean energy at a fixed monthly price.

Through an AI-based model and with access to specialised databases, EcoTrove aims to secure up to 10% cheaper rates for customers compared to their current utility rates by finding the best savings opportunities.

Current utility partners are Pacific Gas & Electric and Southern California Edison.

Under the subscriber agreement, which includes a tri-party contract between EcoTrove, its customer and the utility, the customer continues to own their utility account but EcoTrove acts on their behalf and pays the utility bills.

With this service EcoTrove’s aim is to address several significant inefficiencies in the US energy markets.

Volatility

The volatility in utility pricing is a growing concern across the US.

In 2024, every major utility increased electricity and natural gas rates. At PG&E, customers have seen a staggering 25%+ increase in rates compared to 2023. Since the vast majority of customers cannot secure power outside their utility, these fluctuations leave their monthly budgets to the whims of their utility.

Inability to navigate clean energy

Despite the clear benefits of clean energy, many Americans are unsure how to make the switch. Options such as community choice aggregators, community solar farms, virtual power plants, and private generators are available, yet these alternatives are not widely promoted by traditional utility companies.

This lack of awareness and guidance makes the transition to cleaner energy sources unnecessarily complicated for consumers.

Inflexibility of rate plans

In most states, energy consumers are able to switch their utility rate plans. Specifically in California, customers have the option to switch their PG&E rate plans, but they are limited to just one change per year, unless they work with a qualified third-party service.

This restriction prevents consumers from optimising their plans to align with their usage patterns and seasonal variations.

If customers could adjust their rate plans monthly without changing their usage at all, they could save up to 20% on their utility bills annually. Unfortunately, the current system’s rigidity hampers this flexibility and keeps potential savings out of reach for many.

Complex government incentives

There are numerous local, state and federal government incentives available that could reduce utility bills by an additional 10%. However, these incentives are often buried in complex bureaucratic processes, making them difficult to access and understand.

Researching and applying for these incentives is a time-consuming process that many consumers simply cannot navigate effectively.

With this offering in place the way is opened for expansion with additional benefits such as demand response incentives, future energy demand forecasting and an automated energy advisor.