Texas is a major industry player in renewable energy, especially wind-generated electricity. Yet, it has been lagging behind states like California when it comes to solar energy for home use. Texas, however, aspires to become the frontrunner in solar power for houses that don’t require costly panels, and its solar electricity systems and output are expected to double in the next several years.
Electric companies, which sell energy plans to Texas residents (also called energy providers and light companies), have historically priced their 100% renewable energy plans at a premium to fossil-sourced plans, and the higher prices have dampened demand for green energy plans.
However, Gexa Energy’s renewable energy plans now have energy rates that are less than many fossil-sourced plans. Also, Chariot Energy, owned by a Fortune 500 Korean-based conglomerate, has utility-scale solar generation units in Texas and will become a major solar energy player in the residential market. Green Mountain Energy and other green energy providers are reducing their rates to meet the competitive challenge of Gexa and Chariot. Check out Pulse Power’s low renewable energy rates as well. You’ll find special discount rates for these electricity providers by entering your zip code on this page.
Check out a sampling of the low-cost green energy rates of Gexa, Green Mountain and Pulse Power you’ll find on Home Energy Club.
Cheap Renewable Energy Rates
|Average Monthly Usage|
|Gexa Saver Premium 24||14.3¢||13.9¢||8.8¢||24 Months||Fixed||$295.00||100%|
|Gexa Saver Supreme 24||16.2¢||7.4¢||11.4¢||24 Months||Fixed||$295.00||100%|
|Gexa Saver Freedom 36||13.6¢||13.2¢||13.1¢||36 Months||Fixed||$295.00||100%|
|Gexa Saver Supreme 12||15.6¢||6.8¢||10.9¢||12 Months||Fixed||$150.00||100%|
|Gexa Saver Freedom 12||12.8¢||12.4¢||12.3¢||12 Months||Fixed||$150.00||100%|
|Gexa Saver Deluxe 12||16.0¢||5.6¢||10.5¢||12 Months||Fixed||$150.00||100%|
|Gexa Saver Premium 12||13.8¢||13.4¢||8.3¢||12 Months||Fixed||$150.00||100%|
|Gexa Superb Saver 12||18.4¢||14.5¢||7.6¢||12 Months||Fixed||$150.00||100%|
|Gexa Saver 12||17.0¢||7.2¢||11.8¢||12 Months||Fixed||$150.00||100%|
|GREEN MOUNTAIN PLANS|
|Pollution Free e-Plus 24 Preferred||11.4¢||11¢||10.8¢||24 Months||Fixed||$200||0%|
|Pollution Free e-Plus 12 Preferred||11.5¢||11.1¢||10.9¢||12 Months||Fixed||$150||0%|
|Pollution Free e-Plus 36 Preferred||11.3¢||10.9¢||10.7¢||36 Months||Fixed||$250||0%|
|PULSE POWER PLANS|
|Texas Fixed 12||11.1¢||10.6¢||10.3¢||12 Months||Fixed||$20||19%|
|Texas Saver 12||16.1¢||6.2¢||10.8¢||12 Months||BillCredit||$125||19%|
|Texas Saver 36||16.6¢||6.7¢||11.3¢||36 Months||BillCredit||$125||19%|
|Texas Fixed 36||10.8¢||10.3¢||10¢||36 Months||Fixed||$20||19%|
|Texas Green 12||11.3¢||10.8¢||10.5¢||12 Months||Fixed||$20||100%|
|Texas Green 36||11.1¢||10.6¢||10.3¢||36 Months||Fixed||$20||100%|
Review our guides and other information on the impact of renewable energy on CO2 to reduce climate change and save you money, such as these:
- How much CO2 is your home energy plan emitting?
- 10 painless ways to cut your home’s CO2 and save money doing it
The growth of solar is good news for Texas residents
The state has huge land spaces, plenty of sunshine and even federal renewable energy tax subsidies which solar developers are taking full advantage of before tax subsidies decrease.
Various energy experts have predicted that as the solar industry grows, it may cause a disruption in the market, resulting in a significant decline in profits in the coal, natural gas, and nuclear generation segments.
The good news for Texas consumers is that the additional power supply could ease electricity shortages and lower extreme prices in hot summer months, which are a major source of profits for generators who gain from peak demand. Extreme temperatures over an extended period tend to push the wholesale prices to a state maximum per megawatt-hour as compared to average prices.
It has been predicted that solar power shall show its full impact in the next five years, since the industry is about to reach a critical mass, amounting to 20 percent of the state’s entire electricity generation capacity. This impact may be realized sooner if utility-scale battery storage becomes common, which will store energy even when the sun is not shining. These battery storage devices are rare on solar farms at present.
Lithium-ion battery storage prices have fallen by 35 percent, and battery storage will become a game-changer at some point for solar and renewables broadly. The possibility of $9,000 per megawatt-hour electricity during peak demand periods will disappear in Texas.
The solar boom is coming to Texas
Solar energy contributes to 1 percent of the electricity in Texas at present according to the trade group Solar Energy Industries Association, and about 91 percent of this energy comes from utility-scale or large solar projects which supply energy to the power grid. Apart from that, another 6 percent is generated by residential roof-top solar panels and the remaining power is taken from commercial and industrial installations.
The reason for the slow rise in the solar rooftop industry in Texas is that low electricity prices make it difficult for businesses and homeowners to justify the cost of installing solar panels. Also, due to a lack of generous government subsidies in the state, the time required to recover an investment in rooftop installations can be decades. Further, there are no policies in Texas that force the utilities to buy back the excess power which is generated by roof-top solar panels.
ERCOT has predicted that Texas has a current solar capacity of about 3,000 megawatts, and it can double the amount to up to 6,200 megawatts in the coming year. According to ERCOT, Texas may have more than 11,000 megawatts of solar power capacity in several years. It already has about 22,000 megawatts of installed wind capacity.
No more extreme summer electricity prices
There have already been market impacts caused by solar energy in Texas. On the summer of 2019, triple-digit temperatures pushed the electricity demand in the state to a new level. The wind was not blowing hard enough and that’s when solar energy generators stepped in to share the load. They contributed to produce about 1,400 megawatts of power out of the total capacity of 80,000 megawatts.
The grid manager calculated only 1,460 megawatts of reserve power as remaining before the State of Texas began facing power outages. Energy prices soared up to $9,000 per megawatt-hour.
The director of regulatory and legislative affairs for the advocacy group, Environmental Defense Fund, John Hall, believes these high prices will encourage more solar development, especially utility-scale projects in Texas.