Millennials Are More Likely to Switch Electricity Suppliers Than Other Demographics

Reasons for switching: savings, green electricity options, or both

According to our recent survey, 79% of Americans in select deregulated energy states are familiar with the idea that they can switch energy providers. Yet despite knowing they have options to grab lower rates on their energy bills, or opt into green energy sources, only 58% of those respondents have actually switched providers themselves (see Figure 1).

Figure 1

Are you aware that you have the option to change your home’s electricity supplier?

Have you ever switched your home electricity provider?

Yes 58%

No 42%

Although most consumers are aware that there are options for switching their home’s electricity supplier, just over half of them have ever switched.

Millennials made up 63% of respondents who have already made the switch to a new home electricity supplier. Why might this option be so appealing to Millennials in particular? Chances are, the opportunity to secure a lower monthly energy bill is especially appealing to this group, in light of its distinct lack of generational wealth on the whole. Fallout from the Great Recession and other economic factors have put Millennials in the position of holding just 3% of total US wealth—and that percentage was calculated before the pandemic struck and put millions out of work. It follows, then, that Millennials would seek lower energy rates by switching to a new supplier, in hopes of getting their finances back on track.

Figure 2

Have you ever switched your home electricity provider?

Yes
No

Although most consumers are aware that there are options for switching their home’s electricity supplier, just over half of them have ever switched.

Whether Millennials are on the prowl for lower household costs or simply more aware of their options than the generations surrounding them, one thing is clear for everyone in the deregulated electricity market space: Millennials are the prospective customers to watch.

Methodology

This study was conducted using Pollfish, an online platform that facilitates statistically accurate surveys between businesses and a diverse group of US residents.The first survey gauged overall awareness for 400 respondents in the states that Eligo Energy serves: “Are you aware that you have the option to change your home electricity supplier?” This survey was conducted on November 9, 2020. A follow-up survey measured satisfaction among another 400 respondents: “Are you aware that you can change your home’s electricity supplier?”, “Have you ever switched your home electricity supplier?” and “Are you satisfied with your home electricity supplier?” This study was conducted on November 17, 2020.

Table 1

Percentage breakdown from Figure 1 which asked whether people are aware of the option to change home electricity supplier, whether they switched, and how satisfied they are by their supplier.

Q1: Are you aware that you have the option to change your home's electricity supplier?

Yes

79%

No

21%

Yes

79%

Q2: Have you ever switched your home electricity provider?

Yes

58%

No

42%

Q3: Are you satisfied with your current home electricity supplier?

Yes

85%

No

15%

Table 2

Detailed percentage breakdown from Figure 2 which covers the same questions covered in Table 1, but breaks it down by age group.

Have you ever switched your home electricity provider?

Have switchedYes	Have not switchedNo
20%	80%	Generation Z
63%	37%	Millennials
48%	52%	Generation X
41%	59%	Boomers

Additional Sourcing

How Covid-19 Has Changed The Way Americans Use Energy, Forbes Millennials only hold 3% of total US wealth, and that's a shockingly small sliver of what baby boomers had at their age, Business Insider How millennials’ financial futures have been impacted by pandemic unemployment, CNBC