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Energy Saver or Scam? Be Wary of Inflated Claims for Lower Power Bills

“Cut your energy bill in half!” “Secrets the power companies don’t want you to know!” As interest in saving energy grows, so do the number of ads like these, many of which either overstate the potential savings of the products or are outright frauds.

Some ads claim that all you have to do is plug in their “power-saving” devices to save on electricity costs. These ads are usually touting a power factor correcting device that is designed to reduce the demand from the power company for reactive power, a function of alternating current used by equipment like motors and transformers. This concept has been used by industrial users with large motors, but these devices are unlikely to reduce your residential bill, because:

  • Residential customers are not billed for reactive power.
  • Only some types of equipment use reactive power.
  • Most modern efficient household equipment already optimizes this use.

These devices may help protect against power surges, but there are better ways to do that, such as using Jackson EMC’s Lightning Pro Surge Protection products.

Then there are the “As Seen on TV” ads for products like draft blockers for your doors that say you can “save big” on your energy bills. While such devices do reduce drafts, weather stripping does the same for considerably less.

Web searches for energy-saving information often bring advertisements promising to “cut your utility bill by 80%.” These are usually selling plans for generating your own power, claiming that you can build your own solar or wind system for a few hundred dollars. The companies that offer these often operate fake review sites and pay for bogus testimonials. While federal tax credits and rebates such as our Right Choice™ Sun Power Rebate Program have reduced the cost of solar systems, a whole-house system is more likely to be in the five figures.

Before buying such items, research extensively online and check with the Better Business Bureau and the Georgia Office of Consumer Affairs. In general, be suspicious of inflated energy-savings claims and ads that offer “secret” information. Instead, spend your money on efficient appliances and home improvements that are sure bets for reducing your energy use.

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