Renters Guide to Electricity Choice: Save $50+/Month (2026)

Maya was venting to her coworker about her $180 electric bill.

"You know you can switch suppliers, right?" her coworker said. "I pay 6.4 cents. You're probably on the default rate."

Maya went home and checked her bill. Supply charge: 11.8 cents per kWh. More than 80% higher than her coworker's rate. Same city. Same utility delivering the power. Different supplier.

She found a plan at 6.2¢ on ElectricRates.org. Five minutes later, she'd enrolled. Her next full bill dropped from $180 to $112.

$68 a month. Just because nobody told her she had a choice.

Note: Maya could switch because the electricity account was in her name. Her friend Sarah, one building over, couldn't. Sarah's landlord pays the electric bill and adds a flat $75 to rent. Same city. Same utility. Different rules.

Your rights depend entirely on whose name is on the account.

Account in your name? You have full supplier choice. Same rights as homeowners. Your landlord can't stop you.

Account in your landlord's name? You can't choose. Even if they bill you separately for electricity, they control the supplier because the account is theirs.

Check the name on your bill. That tells you everything.

If the electric account is in your name, you have the same rights as someone who owns a house. Full stop.

Your landlord can't tell you which supplier to use. They can't require you to stay on the default rate. They can't even ask about it. It's your account. Your decision.

What you can do:
- Compare every licensed supplier in your area
- Switch anytime (just mind your contract terms)
- Lock in rates lower than the utility default
- Choose 100% renewable energy if you want

Where to shop:
- Ohio: Apples to Apples
- Pennsylvania: PAPowerSwitch
- All states: ElectricRates.org

One trick for renters: Match your electricity contract length to your lease. If you have an 11-month lease, don't sign a 24-month electricity contract. Early termination fees range from $50 to $200. Moving usually waives them, but not always. Read the fine print.

"But I pay for my electricity," Jason told me. "It's a separate line item on my rent statement."

Doesn't matter. The utility account is in his landlord's name. The landlord could be paying 14 cents per kWh and billing Jason a flat $100 while pocketing the difference. Or the landlord could be on a great rate and Jason benefits. Either way, Jason has no say in who supplies the electricity.

The hard truth: If the account isn't yours, you can't switch.

What you CAN do:

1. Ask your landlord if they've shopped rates. Many haven't. Some will if you point out they could save money on the whole building.

2. Plant the seed. "Hey, I was reading about electricity choice. Did you know you could probably cut the building's electric costs 15-20%?"

3. When lease renewal comes up, negotiate. If you know the landlord is overpaying for electricity, that's leverage.

Some landlords pass savings to tenants. Some pocket them. But you won't know unless you ask.

One meter for the whole building? Or one meter per apartment?

This simple question determines your electricity rights.

Master-metered building: One meter. The landlord gets one bill for all units combined. They split the cost however they want—flat fee, by square footage, by bedroom count. You can't choose your supplier because there's no account for your unit.

Individually-metered building: Separate meter for each apartment. You open your own account with the utility. Your name goes on the bill. You have full supplier choice.

How to know which you have:

Did you call the utility to start service when you moved in? Individual meter.

Was electricity already on when you got the keys? Probably master-metered.

Still not sure? Ask your landlord: "Is my apartment individually metered for electricity?"

Older buildings (pre-1970s) are often master-metered. Converting to individual meters costs thousands per unit, so landlords rarely do it.

Newer construction is almost always individually metered. It's standard now.

Tanya found an amazing electricity rate: 5.8 cents per kWh, 24-month contract. Her lease had 9 months left. She signed the electricity contract anyway.

"Rates this good don't last," she figured. "I'll probably renew my lease."

She didn't. Her landlord raised rent by $200. She moved. The electricity supplier charged her $150 to cancel early.

The rule: Your electricity contract should not outlast your lease.

Smart options for renters:

- Month-to-month variable: Maximum flexibility. Rates change monthly. Good if you might move anytime.
- 6-month fixed: Slightly higher rates. No long-term commitment. Works for short leases.
- 12-month fixed: Best rates. Match to a 12-month lease.
- Longer contracts: Only if you're certain you're staying.

One exception: Many suppliers waive early termination fees if you're moving out of their service territory. Check your contract terms. "Moving" often means no penalty.

But don't count on it. The safest move: match your electricity contract to your lease length. No surprises.

Moving into a new apartment is chaotic. Here's how not to screw up your electricity setup.

Two weeks before your move:

1. Call the utility (AEP Ohio, PECO, Eversource—whoever serves that address)
2. Give them your move-in date and new address
3. Bring your ID and SSN for verification

Pro tip: Request service to start the day BEFORE your lease begins. Nothing worse than moving boxes in the dark.

About deposits:

First-time utility customer? You might need a $100-300 deposit. Limited credit history triggers this. But here's a workaround: if you paid bills on time at your last place, ask that utility for a "letter of credit." Many utilities waive deposits if you can show you're reliable elsewhere.

The mistake most renters make:

They get the utility set up and stop there. Now they're on the default rate—often 30-40% higher than competitive suppliers.

Don't wait. The same week your account goes active, compare rates at ElectricRates.org. The switch takes 5 minutes. Savings start in 1-2 billing cycles.

You're packing boxes. Electricity is the last thing on your mind. Don't let it become a $200 problem.

Two weeks before moving:

1. Call your utility to schedule disconnection
2. Give them your move-out date and forwarding address
3. Take a photo of your meter reading (insurance against billing disputes)

Your supplier contract:

Moving within the same utility area? Your contract usually transfers to your new address. Call your supplier to update your service location.

Moving out of the utility area? Check your contract. Most have a clause that waives early termination fees for moves. The supplier can't force you to stay on a plan they can't serve.

Moving within state but different utility? Gray area. AEP Ohio and Duke Energy are different utility territories. Your supplier might serve both, might not. Call them.

Don't forget:

- Tell your landlord when you're stopping service (they need to know for the next tenant)
- Pay your final bill (unpaid utility bills follow you and wreck your credit)
- Update your address so the final bill reaches you

Renters can't install solar panels or replace the furnace. But you can still slash your bill.

Free moves that work:

- LED bulbs in your lamps. Take them when you move.
- Smart power strip for your TV and gaming setup. Cuts phantom load when everything's off. $25. Pays for itself in 3 months.
- Fans before AC. Ceiling fans cost pennies per hour. Window AC units cost dollars.
- Thermostat adjustment. Every degree lower in winter saves 3%. Wear a sweater.

Talk to your landlord about:

- Drafty windows. Weatherstripping is cheap. Benefits them too.
- Old appliances. That 2003 fridge uses twice the electricity of a new one.
- Insulation gaps. Sometimes they just don't know.

Even if your landlord pays:

Yes, "free" electricity tempts you to blast the AC. But landlords notice when one unit uses way more than others. That's how utilities get split or rent goes up. Waste doesn't stay free forever.