Compare Cheap Energy Rates in Texas

According to our recent study, 34% of Texans are struggling to pay their electric bill. Whether you’re new to Texas or you’re a long-time resident of the Lone Star State, finding an affordable electricity plan is important. Thanks to Texas’s deregulated energy market, there are lots of cheap plans out there.

But getting the best plan isn’t just about finding cheap electricity companies. For starters, how do you avoid gimmicky plans that cause bill surprises? Who are the cheapest electricity companies? And how do you accurately perform an electricity rates comparison to find the best plan for your home?

Don’t sweat it. We’ve selected the cheapest energy plans from the most trusted Texas power companies below, so you can compare electricity prices with ease.

Cheapest Electricity Rates in Texas

We recommend Texans choose a fixed-rate electricity plan to avoid market fluctuations. These plans lock in your rate for a certain term length, typically ranging from 6 months to 3 years, with most people choosing a 12- or 24-month plan. While fixed rates offer price stability, the main drawback is being locked in if market rates drop significantly. In these cases, consider whether paying an early termination fee of $150-$350 to switch to a lower rate is the right decision.

Cheapest Fixed-Rate Electricity Rates in Houston – Centerpoint Energy

Rates in the above table are updated daily. Electricity rates for Centerpoint service areas are pulled for the zip code 77077. Monthly bill estimates are for 1,000 kWh usage.

Cheapest Fixed-Rate Electricity Rates in Dallas-Fort Worth – Oncor Energy

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

Cheapest Fixed-Rate Electricity Rates in Corpus Christi – AEP Texas Central

Rates in the above table are updated daily. Electricity rates for AEP Central service areas are pulled for the zip code 78336. Monthly bill estimates are for 1,000 kWh usage.

Cheapest Fixed-Rate Electricity Rates in Abilene – AEP Texas North

Rates in the above table are updated daily. Electricity rates for Oncor service areas are pulled for the zip code 79606. Monthly bill estimates are for 1,000 kWh usage.

Cheapest Fixed-Rate Electricity Rates in Texas City – TNMP

Rates in the above table are updated daily. Electricity rates for Texas-New Mexico Power service areas are pulled for the zip code 75029. Monthly bill estimates are for 1,000 kWh usage.

Cheapest Fixed-Rate Electricity Rates in Lubbock – LP&L

Rates in the above table are updated daily. Electricity rates for Lubbock Power & Light service areas are pulled for the zip code 79404. Monthly bill estimates are for 1,000 kWh usage.

How to Find the Lowest Electricity Rate Plan

Finding the cheapest plan with the best energy rate for your home is a cinch.

At Home Energy Club, we help you lock in great rates in a few simple steps.

• Enter your zip code below to find cheap rates in your area
• Filter search results based on home size, provider, or plan type
• Easily enroll online or over the phone
• Start saving on your energy

Cheap Electricity Companies in Texas

Many Texans want to know: “Who are the cheapest energy suppliers?” or “Who has the cheapest electric rates in Texas?” We have the answer.

Below are the top light companies in Texas with the cheapest rates. With low prices and vetted plans, they’re a great place to start your search for the cheapest energy plans.

Pro tip: want the lowest electricity rates in Texas?

You’ll find consistently cheap energy rates from:

• Gexa Energy: cheap rates, top brand, 60-day “Happiness Guarantee”
• Cirro Energy: discount-rate, Reliant sister company, top-tier operators
• 4Change Energy: low rates from a top quality, Vistra subsidiary

Honorable mentions for the best prices in Texas include Frontier Utilities and Veteran Energy. Below are the other top suppliers in the Lone Star State.

Types of Cheap Texas Energy Plans

Knowing the different plan types will help you get the cheapest energy plan that’s right for you. While some plans have easy-to-understand, cheap rates, some feature bill credits for specific kWh usage levels.

Check out the most common Texas plan types:

Fixed-Rate Plans

These price-protected plans let you lock in a low rate for the contract period, often 6, 12, 24, or 36-month terms. Fixed rates stay the same, even when prices increase, saving you money and providing more consistent electricity bills.

Plans with fixed rates have Early Termination Fees (ETFs) if you cancel before the contract ends. If market pricing declines, you can’t switch to a plan with a lower rate without paying an ETF.

Free Nights and Free Weekends

Also referred to as time-of-use plans, “free electricity” plans promise free energy during set time periods.

Typically, you can expect free electricity during late nights and early mornings, or on weekends. That said, you’ll pay higher rates during peak demand hours.

Many major light companies offer “free” energy plans that can legitimately help you cut your energy bill. However, read the EFL before enrolling to make sure it’s a good match for your usage.

Reliant and TXU are two of the best providers with “free energy” plans.

Renewable Energy Plans

Renewable energy, also referred to as green energy, offers electricity powered by clean electricity sources, such as wind or solar energy.

Many providers today offer plans that are 100% renewable, while others have a percentage of green energy content. The current Texas average is 31% green.

Bill Credits

Some energy plans offer bill credits if your usage is within a range of kWhs.

Usually, rates for the usage range are very low, but staying within the range can be difficult due to the impact of extreme Texas weather conditions.

If your usage is in range, bill credits can ensure cheap energy rates. But if you fall outside the set usage range, you won’t get the bill credit. This could land you with a far higher energy rate.

Gexa Energy offers 100% green energy with predictable bill credits.

Prepaid Plans

With a prepaid plan, you pay in advance for the energy you use. There’s no deposit, no credit check, and no long-term contract. It’s sometimes referred to as “pay as you go” energy.

Currently, Payless Power is the best company for prepaid energy plans.

With no-deposit lights, the biggest advantage is that you pay for energy according to usage, and you know what you spend every day.

The disadvantages:

• Maintaining a minimum account balance can be tough
• Advance payment may be difficult to come up with

Variable-Rate Plans

Also called flex plans, variable-rate plans’ rates fluctuate with the commodity cost of gas and market demands. While fixed-rate plans have a locked-in rate that doesn’t change, variable-rate plans have:

• Rates that skyrocket during peak demand (like Texas summers)
• Enticing, low up-front rates often followed by drastic price increases

Cheapest Energy Plans Frequently Asked Questions

Why is my energy bill so high?

The following are potential causes of bill surprises and high energy bills:

• Deceptive energy plans with gimmicks: These plans hook customers with ultra-cheap advertised rates, but result in shocking bill surprises if you don’t meet their gimmicky requirements.
• Energy plan is a bad match for your home size: Say you live in an apartment but have a plan for a large home that uses 2,000 kWh/month. Your bill will be very high. Use our Electricity Shoppers Guide for quick energy shopping tips for finding the best plan for your home size.
• Your fixed-rate plan expired: If you have a fixed-price plan, but it expired before you renewed or switched plans, you may have been automatically enrolled in an expensive variable-rate plan.
• Your energy supplier increased their rates: Rates can increase monthly on variable-rate plans. “Wholesale price” plans with floating rates can increase at virtually any time.

Should I know my energy usage when looking for cheap energy plans?

Yes, you should be aware of your home’s energy usage when looking for cheap energy plans.

Knowing your home’s pattern of energy usage is the best way to equip yourself to choose the right energy plan to get the cheapest rate.

Knowing your energy usage:

• Helps you find a plan with the cheapest rate for your home’s monthly energy usage
• Is key to finding the biggest bargain because the cheapest rates are often based on specific usage ranges and/or times of use
• Can help you avoid paying hundreds or thousands of dollars by getting locked into a plan that doesn’t match your usage levels

You can find your exact historic usage with Smart Meter Texas. Use our Smart Meter guide to learn more.

What’s the average Texas electricity rate?

The average price of electricity in Texas for residential customers is over 14 cents per kWh, which is below the national average of 16.19 cents per kWh, according to the U.S. Energy Information Administration.

At 8.76 cents per kWh, Texas commercial electricity is lower than the national commercial average of 12.60 cents per kWh.

In part, this is due to the Electric Reliability Council of Texas, or ERCOT, the non-profit organization that manages the flow of electricity to most Texans. They work with the Public Utility Commission of Texas (PUCT) to make sure electricity providers have transparent pricing, promoting fair competition.

What is a good kWh rate in Texas?

As mentioned above, Texas’ average electricity rate is about 14.5 cents. So, if you can find a plan for 14 cents or less, that’s a good rate per kWh in Texas.

Even better news, the best Texas energy rates we offer currently start as low as 11.4 cents per kWh, which is far lower than the state average.

That said, your rate will vary based on your location, usage, and contract terms. Learn about how Texas’ energy rates are determined.

Another important thing to note is that energy costs fluctuate seasonally. When rates are low, it’s a good time to enroll in a long-term, price-protected contract to lock in the lowest rates.

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 results from our 2025 energy survey of 1,600 Texans, scoring providers on customer satisfaction, experience and retention. Here’s how these core factors weighed into our ratings:

• Customer satisfaction (30%)
• Customer retention (30%)
• Online experience (20%)
• Customer experience (20%)