This startup can shave hundreds of dollars off your electricity bill without any fine print: 'Some save thousands'

Most Americans use electricity all the time and think about it none of the time — or at least, not until the bill rolls in. But with energy prices rising thanks to inflation and other factors, any way to reduce usage and save money is increasingly important.

Enter: Arbor, the startup that helps you automatically lower your energy bill on an ongoing basis — with many customers saving nearly $600 every year — without any interruptions in service or even change of utility provider. All you have to do is link your utility account or upload a recent bill, and Arbor takes care of the rest.

It almost feels too good to be true. 

"That's the problem for us," said Cliff Bernstein, Arbor's chief marketing officer. If someone sees an ad highlighting how they can save hundreds of dollars on their electricity bill, it might seem like a scam. 

In reality, Arbor is simply one of the first companies that has successfully figured out how to navigate the fine print of the electricity market (read: super complex) and find you a better rate not just upfront but over time. When the team pinpoints a better price for your electric bill, you save money through the new energy supplier and they get paid a referral fee from that supplier (at no cost to you).

"In a world of rising prices and increasing complexity, we help you save by automatically switching you to a great rate," said Arbor CEO Andrew Meyer. "This translates to lower bills, less stress, and a clear understanding of what you're paying for."

In an exclusive conversation with The Cool Down, Meyer and Bernstein walked us through how users can shave hundreds of dollars off their energy bills without even thinking about it.

🔎 So how does Arbor work?

"For most households, energy is already one of the biggest recurring expenses, and it's only getting worse," Meyer said. "We started Arbor to help millions of households save with a simple switch to a better rate."

Users enter their ZIP code, and if Arbor is available in their area, they can create a simple Arbor account (name, email, phone number). Then they enter their utility provider (e.g., Pepco), add their address, and link that existing energy account. 

You can access your utility account with login credentials, you can provide your account number, "or you can just upload a picture of your … bill, and then we can pull out all the information from there," Bernstein said. Either way, the Arbor team checks out what electric rate you're currently using, and they see if they can beat it.

That's because in states with a "deregulated" energy market, a utility provider like Pepco or ConEd is going to deliver your energy, but it may not be the company that supplies it. Arbor dives into the weeds to find the cheapest energy supplier, all while keeping your utility provider the same (with no interruption in service).

Bernstein also mentioned Arbor is looking to add features such as tips on energy optimization and ways to encourage energy use during off-peak periods — think: nudges to use your dryer in the middle of the day, when the energy mix is cleaner and cheaper because that's when more is powered with renewable sources like wind and solar. 

⏳ How long does the signup process take?

Signing up only takes a few minutes. Arbor can find users a better rate in as little as 24 hours, Bernstein said. Typically, they should see those savings on their next bill.

💸 How much can users actually save every month?

"Customers save up to $593 per year, but some save thousands," Meyer told us, alluding to how it really depends on how much energy a household uses. "The average savings is a few hundred dollars per year, depending on where you live and how you use electricity."

The team showed us a recent response from an Arbor user in Pennsylvania. When they first moved into their home, their electric bill was over $300. Within two months of using Arbor, the user reported paying half of that first bill.

Overall, Arbor reports it's saved customers $7.5 million since launching in 2022.

⏳ How long do the savings last?

What's unique about Arbor is that the team isn't just finding you a great initial rate adjustment. It's constantly monitoring the energy market to make sure you're staying on a great rate.

"No one else is really doing the ongoing management part," Bernstein mentioned. "There are some websites where you can comparison-shop these rates. … What ends up happening, though, is there's the … lowest rate, but the term might only be three months, and then it goes variable and … gets just priced wherever the market decides to go."

"More often than not, when it goes variable, it goes above where the initial fixed term was, and people just don't have the time of day to stick reminders [on their calendar] and then shop. And then there's the fine print," Bernstein said. "There's some tricky stuff out there."

🏡 Do you have to own a home to use Arbor?

Nope. Renters and homeowners can both use the service. You can also cancel at any time, and if there happens to be an early termination fee associated with an energy supplier, Arbor says it'll reimburse you for it.

💪 Can I trust Arbor? And is my data secure?

"Arbor exists because the energy markets are complex. We make them simple and safe," Meyer said. "We are licensed by state utilities commissions and have a great online reputation," including an "excellent" rating on the review platform Trustpilot.

As for user data, "we have 20 engineers that think about this all day," Bernstein said. "Security is very important." Additionally, Arbor never asks for your payment information or sensitive personal information like your social security number. 

A TCD test of the service confirmed it just asks for your name, address, phone number, and email — along with your energy bill account number or an upload of a recent bill. Basically, only what's needed to perform the service. 

How often do you worry about your energy bills? Every day 😥 A few times a week 😟 A few times a month 🙁 Only when I pay it 😬 Click your choice to see results and speak your mind.

💰 How does Arbor make money, and is that factored into my energy pricing?

Arbor's service is 100% free, so how does it make money? Bernstein explained that the electricity suppliers pay the startup referral fees for getting them new customers — meaning Arbor does not take a percentage of user savings.

So Arbor gets referral fees, and users get those lower energy prices. The process is entirely transparent, with no hidden costs, which is why it has that "too good to be true" feeling even though TCD testing did not uncover any causes for concern.

🗺️ Where is Arbor available?

Users in 12 states and Washington, D.C., can currently take advantage of Arbor's energy rate service (see the full state list here). 

Because energy markets are state-specific, Arbor can help homeowners and renters in deregulated energy markets, which includes most of the Northeast, Midwest, and Texas. In those states, people can actually choose from hundreds or even thousands of energy suppliers, but most of us don't know (1) that choice exists and (2) which plan makes the most sense, especially considering hidden fees and fine print.

"About a third of U.S. households make up these states," Bernstein said, which means Arbor is able to help roughly 100 million people lower their energy bills on an ongoing basis. "There's plenty of room to grow within these" states, he said.

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