Compare Texas Electricity Rates

The average electricity rate in Texas is 14.96 cents per kilowatt-hour (kWh), while the lowest rates start between 10.0 and 11.0 cents per kWh. Check out the electricity rates below to find the best plan for your home’s energy usage.

Compare Rates From the Best Texas Electricity Plans

Our team recommends electricity plans with transparent fixed rates and a contract term of at least 12 months because they deliver the most predictable power bills. We do not recommend bill credit plans or plans with pricing gimmicks because they often lead to unpredictable energy costs. Bill credit plans advertise rates as low as 10 to 11 cents per kWh — but only if your consumption falls within the eligible range for credits. Otherwise, your electricity rate can exceed 20 cents per kWh.

The table below has our picks for the best electricity plans with no surprises from Texas electricity providers with high scores in our ranking methodology. We recommend choosing a plan from this list to avoid bill credit plans that have fluctuating energy rates based on your usage.

Rates in the above table are updated daily. Electricity rates for zip code 75001. Monthly bill estimates are for 1,000 kWh usage.

Cheapest Texas Electricity Rates

The table below shows the electricity plans with the cheapest electricity rates advertised. Many of these plans leverage bill credits to achieve the lowest electricity prices. Bill credit plans offer a monthly account credit — typically ranging from $50 to $125 — when your usage meets a specific kWh requirement, often either 1,000 or 2,000 kWh. However, you’ll only secure the low advertised rates if you consistently earn the monthly credit. In months when your usage doesn’t qualify for the bill credit, your energy costs can skyrocket. However, if your usage aligns with the usage credit requirements, a bill credit plan may work for your needs.

Rates in the above table are updated daily. Electricity rates for zip code 75001. Monthly bill estimates are for 1,000 kWh usage.

Shop Electricity Plans by City

The best electricity plan and company for your needs depends entirely on where you live. Many light companies do not operate in all utility service areas of Texas. Check out the table below to find your city’s best electricity rates and plans. Or, see our full list of electricity rates by Texas city.

Compare Types of Energy Plans

Texans can choose from more than 1,700 electricity plans. You can classify most plans into one of the following broad categories:

• Fixed-rate energy plans: These plans have a fixed rate for the contract term, offering consistent power bills. Fixed-rate plans with straightforward rates are our No. 1 recommendation for Texas homeowners.
• Variable-rate energy plans: These plans have a variable rate that changes monthly based on market conditions. They may offer temporary savings when market rates are low but deliver hefty bills when rates are high. We do not recommend variable-rate plans because of their unpredictability.
• Bill credit plans: These plans offer a bill credit and low rates if your monthly consumption is within a specified range. However, you’ll pay a very high rate if your usage falls below or rises beyond the required range to qualify for the bill credit.
• Time-of-use plans: Time-of-use plans offer discounted — or even free — energy dates depending on the time or day. These plans are sometimes called “free nights” or “free weekends” plans. Time-of-use plans may save you money if you shift your power use to low-rate hours, but this may require a major lifestyle change many homeowners cannot make.
• Green energy plans: Most electricity plans use a mix of renewable and non-renewable energy, but these plans provide electricity derived from 100% renewable sources. Renewable energy plans often include other benefits such as fixed rates, solar energy buyback or discounted rates for EV chargers.
• Prepaid plans: Also called no-deposit plans, prepaid plans allow you to pay beforehand for the energy you plan on using. You won’t receive a monthly power bill with these plans. Instead, you can fund an account anytime and subtract your daily consumption from your balance. Prepaid plans let you buy electricity anytime.
• Business (commercial) plans: Business plans, or commercial energy plans, are plans designed for large and small businesses in Texas. Business electricity rates are usually lower than residential rates. U.S. EIA data shows an average commercial rate of 9.14 cents per kWh in Texas, while the average residential rate is 14.83 cents per kWh, according to recent data.
• Indexed energy plans: These plans have variable rates linked to an energy market index, making them wildly unpredictable. Indexed rates vary every few minutes. Winter Storm Uri caused people with indexed plans to pay exorbitant rates due to the widespread power outages, and since, the Public Utility Commission of Texas (PUCT) banned indexed-rate plans.

Consider your energy needs when determining which energy plan is best for you. We recommend starting by reviewing your monthly usage, term length needs and renewable energy goals. If you have solar panels, this may also impact which plan you choose, as some providers offer solar buyback plans.

Key Factors That Affect Energy Bills

Many factors contribute to high electricity bills, including home size and weather conditions.

• Home Size: Your home’s size plays a fundamental role – larger homes naturally consume more power through additional lighting, bigger air conditioning systems, and more appliances. Even your daily routine matters, with people working from home typically seeing higher bills than office workers due to constant electricity use throughout the day.
• Weather: Weather has one of the biggest impacts on your monthly costs. Texas summers drive bills up significantly as air conditioning systems work overtime, while winter can also spike costs for homes with electric heating. The temperature you choose on your thermostat directly affects these costs – every degree cooler in summer or warmer in winter means more energy consumption.
• Location: Your location within Texas also determines part of your bill through utility delivery fees. The state is divided into six utility zones, each with its own transmission company and fee structure. While you can choose your electricity provider, you can’t change your utility company – it’s determined by where you live.
• Contract terms: Contract choices significantly influence your rates. While longer contracts of 24 to 36 months often come with lower rates, be wary of short-term promotional rates that might expire during expensive summer months. The smartest strategy is often to lock in fixed rates during spring or fall when prices are generally lower.
• Additional fees: Watch out for additional fees that can inflate your bill. These might include minimum usage requirements, daily base charges, or early termination penalties. Understanding these extra costs upfront helps you accurately compare plans and avoid surprise charges on your monthly statement.

Because TDUs have differing rates, your power bill can depend on your service area. Your energy bill in Houston, where CenterPoint operates, will differ from your energy bill in Dallas, where Oncor manages the grid. Also, note that you can’t change your utility company in the Texas deregulated energy market.

How To Purchase Energy Plans in Texas

Enter your ZIP code below, and we’ll display a list of electricity plans from top-rated energy providers in Texas. You can then filter the plans to show options with specific features, such as fixed rates, prepaid electricity or 100% renewable energy content.

Here is a quick summary of the process, with some recommendations from our energy experts.

Step 1: Understanding Your Energy Consumption

Electricity plans advertise average rates at three key usage levels: 500 kWh, 1,000 kWh and 2,000 kWh. Because plans consist of flat monthly charges and fees per kWh, your effective rate will vary depending on your energy usage. Knowing how much energy your home uses each month can help you identify the right plan for your home. You can better understand your consumption by checking past power bills from the last 12 months or visiting Smart Meter Texas.

Step 2: Identify the Best Energy Plan Type

Once you know your usage, punch in your ZIP code below to see the best energy plans in your area. Compare these energy plans based on your usage to pick for your unique needs. We recommend fixed-rate electricity plans with predictable monthly power bills. We do not recommend bill credit plans, time-of-use plans or other plans with complex pricing formulas.

Step 3: Sign up With Your New Plan

After picking the right plan for you, you can sign up online or over the phone in five minutes or less.

Enter your ZIP code below to get started.

Same-Day Energy Options

Texas energy providers can normally switch your electricity plan on the same day. Thanks to the smart meters used in the state, the entire switching process can be carried out digitally. If you request the switch on a Sunday or holiday, you must wait until the next business day. Note that most electricity providers have a cut-off time for same-day requests, which varies by provider. Fixed-rate plans often require a credit check and security deposit, but you can avoid this requirement by choosing a prepaid, no-deposit electricity plan.

Why Does Texas Have Deregulated Energy?

Texas deregulated its electricity sector in 2002, introducing competition between electricity companies and allowing homes and businesses to choose their providers. In most regions of Texas, you can save on power bills by picking a new provider and enrolling in an energy plan with low electricity rates.

Regardless of your chosen electricity plan, you have one transmission and distribution utility (TDU) that operates the power grid in any given location. This system allows electricity providers to compete for customers while sharing the same transmission and distribution system and its associated costs.

You can choose your retail electricity provider (REP), which is the company that supplies the kilowatt-hours measured by your power meter. However, your TDU is determined by where you live, and you cannot switch to another TDU unless you move to a different service territory. Learn more about the difference between utility companies and electricity companies.

In Texas, generators create electricity and then participate in wholesale auctions overseen by the PUCT and the Electric Reliability Council of Texas (ERCOT). Electricity companies purchase power during these auctions and sell that power to you. Meanwhile, it’s the local utility companies that then deliver that power to homes and businesses across the state.

How We Rate and Review Texas Electricity Companies

With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help you cut through the complexity and find the best electricity plan for your needs, whether you’re moving to Texas or looking to switch providers.
We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on cost, bill predictability, customer satisfaction, brand trust, and plan features.

Here’s how those core factors weighed into our ratings:

• Plan features (33%)
• Customer satisfaction and brand trust (27%)
• Plan rates and pricing (20%)
• Energy bill predictability (20%)