Texas Electricity Rates

Texas energy rates

SaveOnEnergy can help Texans find the best energy provider in deregulated areas quickly and easily. Since 2002, more than 5.6 million Texas residents and business owners have exercised their power to choose a retail energy provider (REP). With the SaveOnEnergy marketplace, you can compare energy companies and rates at no cost to find the best electricity plan in your area.

At SaveOnEnergy, we try to make shopping for a deregulated energy plan simple. We offer our customers:

• Years of expertise. We’re the largest online energy marketplace in the country and have helped more than 1 million Texas find the right electricity plan in their area.
• Best rates and plans near you. We partner with trusted electricity providers such as TXU Energy, Reliant Energy, and First Choice Power to bring you today’s low electric rates and the best plans in your area at no cost to you.
• Simple shopping process. We make it easy to shop and compare energy plans from different providers. And once you’ve found the right plan for your home or business, you can sign up online in a few easy steps. Questions? Give us a call and one of our energy experts will be happy to help.

How to shop with SaveOnEnergy

We’ll show you today’s low energy rates from the best Texas electricity providers in your area. Enter your ZIP code to get started!

1. Shop low rates in your area. We work with trusted retail electricity companies in your area to ensure you receive the best quality products and service. Our online marketplace does not cost anything for you to use and allows you to easily filter to find rates and plans that fit your needs.
2. Sign up easily. If you’re not sure which plan to choose or have questions about a plan’s details, call the number above to speak with one of our energy experts. If you’re confident in your choice, you can sign up online. Either way, the process is quick and easy.
3. Enjoy your new energy plan. Your new energy provider will work with your utility company to handle the switch. All you have to do is sit back, relax, and enjoy your new electricity plan!

Enter your ZIP code above to explore the best electricity rates currently available in your area.

Texas energy plans

Finding the right energy plan in a deregulated market can feel confusing or overwhelming. SaveOnEnergy is here to make things easier. We offer a wealth of resources, guides, and tips to help you navigate the shopping process.

• Learn more about electric providers and utilities in Texas.
• If you have bad credit or want to avoid a credit check, see our no deposit page.For more information about deregulation and your power to choose, click here.
• Interested in switching to a new energy supplier? See our guide to switching.
• Energy rates and bills vary by state. To see where your state ranks, see our guide to electricity bills by state.

Find a cheap electricity rate in your area

The U.S. Energy Information Administration (EIA) tracks average retail electric rates in Texas, as shown in the chart below through April 2021. Many factors affect the rise and fall of Texas energy rates, including seasonal changes. Consumers who buy a plan at an off-peak time may secure a lower rate.

The average price for Texas electricity in 2021 is 11.96 cents per kilowatt hour (¢/kWh), 13% lower than the national average. There are fixed-rate plans for Texas residents on the SaveOnEnergy marketplace with electricity rates as low as 6.6 cents per kilowatt hour (¢/kWh).

Texas ranks in the top five states for solar energy generation and first in generating wind energy.

One thing you remember: When you’re looking to buy cheap electricity in your area, don’t forget to consider your monthly power usage. Different usage levels can transform what seem like cheap electricity plans into expensive monthly bills.

So what’s the takeaway? If you search for “cheap electricity near me,” be careful. Other sites tease introductory rates, then jack up prices once you’re locked into a contract. SaveOnEnergy is clear and honest about the plans listed on our site. The rates you find on our marketplace are all-inclusive, so there are no surprises after you secure your rate.

Texas Power Grid

Seasonality has a big impact on electricity prices in Texas. During the summer months when temperatures rise, energy demand tends to increase, too. This is because many Texans rely heavily on their air conditioning during the summer. When energy demand goes up, the wholesale cost of electricity also increases.

It’s also important to prepare for winter weather in Texas. In February of this year, a winter storm left millions of Texans without power during freezing conditions. To prepare for winter storms, visit our power outages guide for safety information and tips. 

Normally, energy rates in Texas decrease during the spring and winter months because demand is lower. However, February’s winter storm led to a spike in energy demand, which increased the wholesale cost of power. If you are looking for predictability and protection from energy rate spikes, search for fixed-rate plans in your area. You can learn more about the different types of Texas energy plans below.

Types of electric plans in Texas

There are several types of electricity plans and rates to choose from in the deregulated Texas market. Your lifestyle, energy needs, and average electricity consumption can help you determine the best option in your area. Here is a rundown of some of the most popular types of Texas energy plans.

Fixed-rate plans

These plans have fixed electric rates set in your contract, so you’ll pay the same rate every month regardless of changes in the energy market. The wholesale cost of electricity fluctuates often, but fixed-rate plans won’t feel the effects of market variations. Most fixed-rate electricity plans do require you sign a contract, locking you in for a set amount of time. If you decide to leave this contract before it expires, you will likely have to pay an early termination fee. If you value stability and security, a fixed-rate plan is best for you.

Variable-rate plans

Variable-rate plans are the opposite of fixed-rate options. These plans are subject to change based on variations in the energy market. This means you may be able to find a cheaper rate when demand is low, but could see your rate spike when demand is high. That said, variable-rate energy plans do not require a contract, so you could switch to another plan when market prices go up. Variable-rate plans can be appealing to those who like flexibility, but come with a fair amount of risk since it’s not always obvious when the wholesale cost of energy will spike.

Green energy plans

Texas has emerged as a green energy leader in recent years. Texas leads the nation in wind energy generation, far surpassing any other state in the country. What’s more, Texas solar power consistently ranks in the top five for electricity generation. This means that energy consumers across Texas have their choice of electricity plans powered by wind or solar energy.

Every Texas electricity plan contains some percentage of green energy in the mix. To find the specific percentage for a plan, check its Electricity Facts Label. Some Texas energy providers specialize in offering 100 percent green energy plans, including Green Mountain Energy, Gexa Energy, and Chariot Energy. Enter your ZIP code above and you can filter for green energy plans in your area.

Prepaid plans

When you shop for an energy plan, your credit score will determine whether providers will require a deposit before they will begin service. But for some consumers, paying a deposit is difficult to do or want to avoid a credit check. Prepaid energy plans can be another option. These plans do not require a credit check and allow consumers to pay for energy in advance. Prepaid plans are also a popular no deposit option.

For a deeper dive into plan types, rate options, and contract lengths, see our guide to picking the right plan.

Business energy plans

Business owners in Texas can also benefit from the power to choose an energy provider! Thanks to deregulation, in 2021 Texas commercial energy rates were the second-lowest in the nation. Businesses in your area can secure affordable business electricity rates using SaveOnEnergy. For a customized business energy plan near you, fill out this form or call the number on your screen to speak with one of our business energy experts.

SaveOnEnergy’s tips for easy electricity service setup

• Don’t forget to read your plan’s Electricity Facts Label before signing up. It contains important information including:
  • Price per kilowatt-hour based on usage
  • % renewable energy sourcing
  • Early termination fees
• Enjoy hassle-free supplier setup. Once your order has been confirmed, your new supplier will set up service with your utility, or transmission and distribution service provider (TDSP) – but don’t worry, there shouldn’t be any interruption to your power during the switch.
• Understanding your electricity bill. Your local TDSP will still deliver your electricity and maintain electric infrastructure including meters and power lines. Your utility fees can be found as TDU or TDSP charges on your monthly bill. They are independent of your supplier rate.

Electric suppliers in Texas

In the deregulated market of Texas, there are energy providers and utility companies. You can choose from any of the available energy providers in your area using the SaveOnEnergy marketplace. Your provider is responsible for generating or buying the electricity that powers your home or business.

While you have the power to choose your provider, you cannot choose your utility company, which is determined based on where you live. The utility’s job is different from the provider. Your utility is in charge of delivering the electricity to your home, maintaining infrastructure, and restoring power when there is an outage. If your power goes out, contact your utility, not your electric supplier.

Contact your utility company

Experiencing a power outage or electrical emergency? Contact your utility company using the information below:

• CenterPoint Energy
• Oncor Electric Delivery
• AEP Texas North
• AEP Texas Central
• Texas-New Mexico Power

Texas energy FAQs

How do I find the best Texas energy plan?

Sorting through all of the available providers, rates, and plans in Texas can take a long time and feel like an overwhelming task. With the SaveOnEnergy marketplace, all you need to do is enter your ZIP code and we’ll show you the top energy plans and current electricity rates in your area so you can compare your options and find the best plan for you.

Once you’ve entered your ZIP code, you’ll find all of the available electricity options in your area, including plans from dozens of top energy companies. Filter for green energy options, free usage periods, provider scores, and more to easily find the right energy plan to fit your needs.

If you have questions along the way or would like to go over a plan’s details with a human, call the number on your screen. One of our energy experts will help you find the best Texas energy plan available in your area and can walk you through the sign up process in minutes.

How can I lower my utility bill?

There are many ways to lower your monthly electricity bill in Texas. For starters, securing an affordable rate is key. But the cheapest rate doesn’t always lead to lower bills. The fastest way to reduce your bill is by lowering energy consumption in your home or business.

SaveOnEnergy can help with this. Our Learning Center offers a variety of resources, tips, and guides to help you save energy and enjoy an affordable electric bill every month.

Of course, choosing the right plan to meet your energy consumption habits is crucial to receiving a lower monthly electric bill. You can use our Energy Calculator to estimate your monthly usage and help you understand the best electricity plan for you.

What is a good energy provider in Texas?

If you live in Texas, there are dozens of top-tier electricity providers near you. We can help you sort through your options and choose the best provider for your home or business.

SaveOnEnergy only works with the best electricity providers in Texas. If a provider does not offer reliable service or affordable rates, we don’t show its plans on our marketplace. Simple as that. This means you can trust that the providers and plans you find on our marketplace are the best options available.

Among the most popular Texas energy providers that we work with are TXU Energy, Reliant Energy, Direct Energy, TriEagle Energy, and more. Enter your ZIP code above to explore available rates and plans from the available Texas energy providers near you.

Which provider has the cheapest electricity rates in Texas?

Currently, Frontier Utilities, Express Energy, and Pulse Power are tied for the cheapest Texas electricity rates. These three providers offer rates as low as 6.7 cents per kWh. Keep in mind that Texas electric rates change frequently as variations in the energy market affect the wholesale cost of electricity. Rates can also vary by location.

To be sure you are viewing accurate rates in your area, enter your ZIP code above or call the number on your screen to speak with an energy expert. Either way is simple, hassle-free, and will help you find a plan with a low electricity rate.

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Updated: 10/22/2021