Compare the Best Texas Electricity Rates & Energy Prices

• Our cheapest electricity plans in Texas are the 4Change Maxx Saver Select and the Express Flash plans, which cost 10.4 cents per kWh.
• Texas electricity rates between 10 and 15 cents per kWh are typically considered good rates.
• Use the Choose Energy marketplace to easily compare the cheapest Texas energy plans and rates in your area.

The average Texas energy rate is 15.60 cents per kWh, according to the most recent data from the Energy Information Administration (EIA). Texas’ energy costs are about 8.3% lower than the national average of 17.01 cents per kWh.

What is considered cheap electricity in Texas?

The lowest Texas electricity rate on the Choose Energy marketplace is 10.4 cents per kWh. This rate is currently offered by 4Change Energy and Express Energy — shop plans by these providers today by entering your ZIP code.

Unique opportunities to save

The plan with the lowest electricity rate isn’t always the cheapest option for you. When exploring electricity plans, the best strategy is finding the option that will maximize your bill savings. Consider these unique plan offerings to help you make the most of your energy shopping.

• Bill credits: Bill credits can help you lower your monthly bill if you fall within the required usage tier. For example, Discount Power’s Bill Credit Bundle 12 and Bill Credit Bundle 24 plans discount your bill by $125 if you use at least 1,000 kWh of electricity.
• TXU Solar Club: The TXU Solar Club is a membership to local solar farms in Texas. This plan allows you to offset the first 500 kWh of your electricity with solar credits for a lower rate. The rest of your energy consumption above 500kWh is sourced from the traditional grid. Investing in solar can be costly, but this option lets you improve your carbon footprint at a fraction of the cost.
• Free nights and weekends plans: These types of electricity plans offer free energy during nights or weekends. This option could benefit certain customers who are typically out of the house for most of the day. Explore TXU Energy’s Free Nights and Solar Days plans if this sounds like a good fit for you.

Texas’ weather can fluctuate as the state transitions from winter to spring. The National Oceanic and Atmospheric Administration (NOAA) predicts above-average temperatures and below-average precipitation as spring begins over the next few months. Moderate temperatures often usher in lower prices for electricity because the demand is low. If you want a cheaper rate, consider browsing your options before the weather warms up. Here are a few suggestions from our energy experts for this month:

• Gexa Energy Eco Saver 12: This affordable energy plan helps customers save even more on their energy bills with a $100 bill credit for using at least 1,000 kWh of electricity a month.
• TXU Energy Smart Deal 12: Our energy experts recommend TXU Energy for its outstanding customer service. This plan is great for households that use just over 1,200 kWh because it offers a $30 bill credit once you surpass that amount.
• TriEagle Energy Silver Eagle 12: TriEagle Energy is popular among Texas residents for its all-inclusive, straightforward pricing. Lock in this fixed-rate plan for 12 months.

• For stability: Customers who value stability would benefit the most from a fixed-rate energy plan. This type of power plan has a set rate for electricity that remains the same for your entire contract. Fixed-rate plans typically last for one to three years. They include an early termination fee (ETF) if you end your contract early.
• For flexibility: Shoppers that want a flexible energy solution should consider a variable-rate plan. This plan type is month-to-month, and the rate changes with the energy market. Variable-rate plans can be risky because you may be subject to high electricity rates during peak demand, but they allow you to switch with no penalty. Explore TXU Energy’s Flex Rewards plan for a variable-rate option.
• For low-credit shoppers: To avoid unnecessary fees based on your credit score, consider a no-deposit electricity plan. These plans allow you to skip the deposit by prepaying for your energy. If you need more electricity, you can top off your account with additional funds. Payless Power’s Prepaid 6 and Prepaid 12 plans are no-deposit.
• For business owners: Choose Energy offers commercial electricity plans for Texas businesses. Contact our commercial energy team for a custom quote.
• For environmentally conscious shoppers: All Texas energy plans include a percentage of renewable energy. However, some providers go the extra mile and specialize in 100% green energy plans. To make your home greener, consider Gexa Energy’s Eco Saver Plus 12 and Eco Saver Plus 24 on the Choose Energy marketplace.

In Texas, you have many energy provider options to choose from. Consider your priorities and preferences to pick the best provider for your energy needs. The following table lists various energy companies in Texas, the lowest rates, and what features they are best for.

Your electricity bill is influenced by multiple factors, including but not limited to location, home size, electricity rate, and occupancy. To help you estimate your potential monthly bill, we multiplied common household usage levels (based on home sizes) by Texas’s current average rate of 15.60 cents/kWh. Here’s what you might expect to pay for electricity each month based on your home size and usage:

• Small households (500–999 kWh): $78–$156
• Medium households (1,000–1,999 kWh): $156–$312
• Large households (2,000–3,000): $312–$468

Use these ranges to determine if you are paying a good price for your electricity. If your monthly bill is more expensive than the highest estimate for your usage level, it might be time to shop around for a more favorable electricity price.

About 85% of Texas has a deregulated energy market, giving residents and businesses the power to choose their electricity provider. With deregulation, energy suppliers compete to offer you the best electricity rate and customer service. As a result, you can save money on your energy bills and find an energy plan in Texas that fits your electricity usage. The term “power to choose” is common in deregulated markets. It is also the name of the official website of the Public Utility Commission of Texas (PUCT), the regulatory body overseeing the Texas electricity market.

Choose Energy’s easy-to-use marketplace is designed to help you discover your energy options and sign up in minutes. Here’s how to use our website to find your next power plan:

• Enter your ZIP code: Compare plans and rates in your area on the free Choose Energy marketplace to find what works for you. Use the filters to find tailored results, such as specific rate types, term lengths, or green energy. You can also call our team to discuss your options.
• Pick a plan: When you find one you like, sign up online in a few minutes. If you need help choosing, call the number on your screen for an agent.
• Enjoy your new plan: Your Texas energy supplier will handle the set-up so you can relax without power interruption.

Energy plans are not one-size-fits-all. Some plans are better suited for certain households than others. When you are shopping for energy plans on our marketplace, ask yourself these questions to help guide you:

How many kWh of electricity do I normally use in a month? 

Check several of your past electricity bills to determine how many kWh of energy you typically use. This information will help you find the cheapest rate for your average usage.

Do I want a long-term or a short-term plan? 

Long-term plans are best suited for someone who knows they can commit to a contract for one to three years. Otherwise, you may receive an ETF (early termination fee) for canceling your plan early. If your living situation changes often or you need a quick solution, consider a month-to-month plan.

Should I wait until another time of year to sign up for a plan? 

Check our marketplace to determine if today’s rates are cheaper than your current price. Early spring and late fall are normally the cheapest times to shop for electricity. Consider switching during those months to find a lower rate.

Do I want a fixed or variable rate? 

Fixed rates will give you a predictable electricity bill. A variable-rate plan may be cheap momentarily but can be unpredictable when market prices rise.

If you are moving to Texas, you can keep your current energy plan if your provider serves your new address. You can switch electricity providers if you want a new provider or if your current one does not service your new location. You will not pay an early termination fee if you move to an address your current provider does not cover.

Shop Texas energy plans on Choose Energy’s marketplace up to 90 days before moving, and select your move-in date when you sign up. Your provider will handle the rest. Most Texas homes have smart meters, meaning you will not need to schedule a technician visit to begin electricity service. Instead, your new provider will activate your service remotely on your selected date.

 

Choose Energy is a free energy marketplace where you can compare electricity plans and providers in your area. We began operating in deregulated energy markets in 2008 and have since established partnerships with the best energy companies nationwide. Our goal is to simplify energy shopping, so we built a simple-to-use marketplace and convenient sign-up process.

The Choose Energy marketplace lets you compare all-inclusive rates, plans, and providers in your area. Once you find an option you like, you can sign up online or over the phone with one of our energy experts. We also create useful buying guides and energy resources to help you understand your options.

Are Texas electricity rates going up?

Texas energy prices typically increase in the summer and decrease as temperatures decline in the cooler months. According to the latest EIA energy outlook, oil prices are expected to decrease due to more production than demand. On the other hand, natural gas prices may increase due to higher demand. Electricity prices fluctuate daily based on market prices. You can use the Choose Energy marketplace to explore the lowest energy rates in Texas at any time of the year.

Why does Choose Energy run a credit check?

Our partners require a soft credit check (which doesn’t affect your score) to determine if your credit meets their requirements. The provider may ask for a deposit to begin service if your credit score falls below that threshold. We’ll check your score with all providers on our marketplace at once so you can find the best electricity rates in Texas.

What utility companies operate in Texas?

There are five main utility companies in Texas: AEP Texas Central, AEP Texas North, CenterPoint Energy, Oncor Electric Delivery, and Texas-New Mexico Power.

How quickly will my new service start?

If you are signing up for a new plan and have a smart meter installed at your home (most Texans do), you might start service the same day you sign up. Some providers offer same-day electricity if you order before 3 p.m. CST. You can call our experts for details on provider cutoff times, as they can vary. Switching electricity providers could take up to five business days.

How can I lower my electricity bill?

One way to lower your monthly electricity bill in Texas is to switch electricity plans with a lower rate. Securing an affordable rate is often easier during seasons when demand is lower, such as spring and fall. Rates can change daily, so check the Choose Energy marketplace today to find out which company has the best electricity price for your usage. You can also lower your energy bill by using less electricity each month.