Morsa Images/DigitalVision/Getty images
Key Points
- Small businesses have the power to choose their energy provider in deregulated energy markets.
- Electricity plans for small businesses vary by type and length — SaveOnEnergy can help you choose an energy plan suitable for your company’s needs.
- Compare and sign up for the best rate for your business by contacting our energy experts.
Get custom business energy rates
Fill out the form below to receive your custom business energy quote.
Small business electricity plans
In today’s dynamic marketplace, small businesses must optimize operational costs, including electricity expenses. Thanks to the deregulated energy market, you have the power to choose a small business electricity provider that aligns with your budget and energy needs. Whether you’re seeking price stability or plan flexibility, you can find a variety of options with SaveOnEnergy. We partner with electricity providers offering customizable plans to commercial energy customers across Texas. Learn more about the best small business electricity plans.
What is small business energy?
Commercial energy is the electricity used to power offices, retail shops, restaurants, nail salons, and other business operations. Small businesses typically use more energy than homes because they operate longer hours and perform high-usage activities throughout the day. For example, a restaurant uses kitchen appliances like large ovens, dishwashers, and refrigerators more frequently.
Learn more about commercial energy plan types, lengths, and other key factors affecting your electric costs.
Plan types
Fixed and variable rates are the two main pricing structures for electricity plans. Fixed-rate plans offer a consistent electricity rate over the contracted period, so you know how much you’ll pay every month. Because variable-rate plans are subject to market conditions, they fluctuate often. Your price per kilowatt-hour (kWh) may vary each month.
Fixed-rate plans may be best for you if you prefer stability and consistency to help with budgeting. Variable rates can provide flexibility and potential cost savings if energy prices are low, but you remain subject to market conditions. Our business energy experts can help you determine the best electricity plan for your small business. Call the number on your screen or fill out the form on this page to get started.
Plan lengths
Small business electricity providers offer a range of plan lengths catering to different needs. For those seeking flexibility, month-to-month plans are ideal because you can easily switch or cancel without incurring an early termination fee (ETF). If you prefer more stability and potential cost savings for your business, longer-term options like 24- or 36-month plans may be a better fit. Explore small business energy provider options with SaveOnEnergy today.
Demand charges
Demand charges are one of the main differences between a residential and business electricity plan. While residential customers only get charged for how much energy they use, businesses also pay for the demand they put on the grid during peak hours. These charges depend on the Four Coincident Peaks (4CP), which are the four hours that have the highest grid demand during June, July, August, and September. While the 4CP hours are unpredictable, reducing usage during these times can help you save money on demand charges.
For example, imagine two small businesses each use 25,000 kWh per month. One business uses 300 kWh during peak hours, while the other uses 150 kWh. The second company, using less energy during peak times, will pay lower demand charges and save money on its energy bill despite having the same total usage amount.
Business electricity comparison
You can use the following table to compare energy rates in Texas to the national average based on the energy type from Energy Information Administration (EIA) data. Industrial rates are the lowest because these entities use significantly more power. It’s similar to buying in bulk with a lower rate per kWh but higher total cost.
The average electricity cost for a small business in Texas is about 33% lower than the national average. Overall, electricity rates in Texas are below the U.S. average across the residential, commercial, and industrial sectors.
| Residential | Commercial | Industrial | |
|---|---|---|---|
| Texas | 15.60 ¢/kWh | 8.73 ¢/kWh | 6.25 ¢/kWh |
| U.S. | 17.01 ¢/kWh | 12.22 ¢/kWh | 7.89 ¢/kWh |
Business electricity suppliers comparison
We partner with commercial electricity providers in Texas to help companies secure affordable rates and favorable plan terms. Call the number on your screen to compare and sign up for the best rate for your business. Learn more about small business electricity providers in Texas in the following table.
| Energy provider | Plan type | Plan length (months) | Service area |
|---|---|---|---|
| Ambit Energy | Fixed- and variable-rate | Month-to-month, 6, 12, 24, 36 | Texas |
| TXU Energy | Fixed-rate | 6, 12, 24, 36 | Texas |
If you’re searching for an energy provider, you can compare the cheapest small business electricity costs by calling the number on your screen. Our business energy experts can help you find the perfect energy fit for your small business. Once you’ve locked in a plan, our experts can serve as an ongoing point of contact if you need to adjust your plan or troubleshoot issues.
Small business utility companies
In deregulated areas, utility companies and energy providers have different responsibilities. The utility company maintains and operates the electrical infrastructure, such as power lines and distribution systems. Your business electricity provider is responsible for selling the energy or natural gas to your business in the form of an energy plan. You can choose the energy provider for your business, but your utility company is based on your location.
If your business experiences a power outage, contact your utility company to resolve the issue.
Small business electricity FAQs
The average U.S. business uses 6,054 kWh of energy per month, according to the most recent data from the Energy Information Administration (EIA). Usage varies by business size and type. Call our business energy experts to find the perfect plan for your small business.
To manually calculate your small business energy cost, multiply the total energy consumption in kWh by the electricity rate per kWh on your electric bill. For a more detailed calculation breakdown, follow the instructions for the energy usage calculator.
The types of businesses that use the most electricity are those relying on high-usage equipment such as ovens, refrigerators, heating, cooling, and lights for long hours. Some examples include restaurants, grocery stores, convenience stores, laundromats, and gyms.
Yes. Call our business energy experts using the number on your screen to explore the cheapest business energy supplier for your company’s needs.
You can save money on electricity bills by using energy-efficient equipment and lighting, unplugging unused devices, and switching to green energy sources. Monitoring your energy usage can help identify ways to improve energy efficiency.