Types of Heating Fuel Payment Plans & Why You Should Sign Up
If you’re like many heating oil customers in New Hampshire, your winter heating expenses likely take up a significant portion of your budget over the winter months. While purchasing oil is the easiest way to keep warm during those chilly months, there are payment plans available with most heating oil providers that can ease your fuel costs over the fall and winter, and the time to sign up for one is in the spring and summer.
Read this blog from Clean Oil Heat NH to learn why you should ask your fuel provider about payment plans this year.
Fuel Payment Plans Explained
As a homeowner in New Hampshire, a fuel payment plan is the best tool available to keep energy bills affordable. There are several types of payment plans to choose from, but all payment plans can help you:
- Add predictability to your energy costs
- Save money with low preseason rates
- Spend your winter worry-free despite temperature fluctuations or price spikes
Choosing the Right Fuel Payment Plan for Your Budget
Most local heating oil suppliers begin open enrollment for budget plans in the spring and summer. Signing up before winter allows you to take advantage of lower preseason rates and, with some plans, spread fuel costs out evenly through the year. While each heating oil supplier will have their own plans and terms, some basic payment options might include:
Pre-Buy Cap Program
Purchase all your heating oil upfront at a low seasonal rate. Your fuel provider will help you determine the amount to purchase based on your previous usage history. A pre-buy program allows you to take advantage of low preseason rates and have your fuel needs squared away for the winter. Downside protection is available in some cases.
Budget Cap Program
Set a capped price and make ten to twelve monthly payments. No matter how fuel rates may climb, you’ll never pay more than the agreed upon rate. With downside protection, if market rates drop, you will pay a lower price.
Market Price
Heating oil deliveries will be made at the daily market rate. You can spread your payments out over a ten- to twelve-month period. When market prices drop, you’ll always pay the lowest price.
Fixed Price
Lock in a predetermined, fixed rate per gallon and spread your payments out over a ten- to twelve-month period. This plan adds predictability to your energy bills and protects you from market spikes.
Related Post: What Is High-Efficiency Heating Equipment?
Sign Up for a Payment Plan This Summer
Payment plans are built for customer flexibility and affordability. Signing up this summer protects your fuel price and saves you time, money, and stress over the heating season. Contact your local heating oil provider to learn more about what plans they offer and how to make managing your heating bills simpler this year.