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How to Compare Business Electricity Rates in Texas

Shop for cheap commercial energy in the Lone Star State.

At Choose Energy, our reporters seek out information that puts you in control of your energy. Our partners do not direct our editorial content, though we may reference their products in our posts. Read about how we make money to learn more.

For business

How to Compare Business Electricity Rates in Texas

You can shop and compare Texas business energy rates by filling out our energy form. Our team will reach out for more information on your business and its energy usage. You can also call 1-855-404-2027 directly to speak with one of our energy specialists.

The average business electricity rate in Texas

The average business electricity rate in Texas is currently 8.73 cents per kWh, according to data from the Energy Information Administration (EIA). Compared to the national average of 12.48 cents per kWh, Texas companies have a 30% lower average business energy rate.

How to get the best business electricity rates in Texas

Business electric rates in Texas can vary based on your location, provider, and how much energy your company consumes. Some of the best ways to find the right option for your business is: 

  • Compile energy usage: Take the last six months of your utility bills and calculate the average your company uses monthly. This number is necessary for our team to help you find the cheapest options based on your energy consumption.
  • Understand price differences: When you choose a fixed-rate plan, you don’t have to worry about rate hikes. With a variable-rate option, your electric rate can change each month. It means when demand peaks, you could end up paying more. However, variable-rate plans allow you the flexibility to cancel whenever you want.

Small Texas businesses

Small businesses in Texas, such as merchants, may want to consider signing up for flexible plans to switch between providers when energy demand increases to keep costs low. If you sign up for a fixed-rate contract, you’ll want to pay close attention to any early termination fees (ETFs) that might apply. 

Large Texas businesses

Large businesses in Texas should consider signing up with an energy supplier with scalable options as business needs grow. You’ll also want a provider that understands your company’s unique requirements and can make suggestions to improve efficiency while reducing energy load demand. 

Types of business electricity plans

As you shop for Texas electricity plans for your business, here are the few different types you’ll encounter: 

Fixed-rate

If you sign up for a fixed-rate plan at a set rate, this is the price you’ll pay throughout the term. Contracts typically last about one to three years. Fixed-rate plans benefit businesses looking to keep energy costs low and predictable. 

Variable-rate

With this option, your rate could be low in one month and spike during the next month. These plans can change monthly pricing due to climate, energy load demand, and other factors. Variable-rate plans can be useful for companies seeking short-term solutions and the flexibility to switch plans when they want. 

Green energy

Companies can also source more or all of their energy from renewable sources. Green energy plans offer affordable perks and a way to tout your business as being more eco-friendly by reducing its carbon footprint. 

Business providers in Texas

Here are two of the top commercial energy providers available on the Choose Energy marketplace: 

Ambit Energy

Ambit Energy offers business energy solutions with affordable rates and terms of up to three years. If you switch to Ambit from another provider, you’ll experience a smooth transition without service interruptions. Ambit Energy may also appeal to businesses interested in charity work. This provider supports the local community by partnering with Feeding America and offering various opportunities for customers to give back through its Ambit Cares initiative. 

TXU Energy

TXU Energy is an energy provider with something for everyone. It offers fixed-rate plans with various term lengths, variable-rate options, and plans sourced from 100% renewable energy. It also has a 60-day guarantee, which means you’re free to switch without any early termination fees if you’re not satisfied in the first 60 days after signing up.

Texas business electric rates FAQ

Are business and residential electric rates different?

Yes, commercial rates differ from residential ones because companies consume more energy and tend to have different usage patterns because of operating hours. Companies typically pay lower rates than residents but have higher total bills. 

What is the average electric rate for a business in Texas?

The average business electric rate is 8.73 cents per kWh. However, your location, energy consumption, and plan choices can impact pricing. 

How do I sign up for a business electricity plan?

Receive customized energy solutions by filling out our business energy form. You can also call our energy experts at 1-855-404-2027 to walk you through the process.