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Key Points
- Our Texas electricity rates start at 10.4¢ per kWh at 1,000 kWh.
- Rates typically range from 10.2¢ to 22¢ per kWh.
- Compare cheap electricity in Texas from trusted electricity companies by entering your ZIP code on our marketplace.
Popular providers and plans
In Texas, some of the most popular electricity providers include TXU Energy, Reliant Energy, Direct Energy, Gexa Energy, Frontier Utilities, and Discount Power. Below are top plans for these providers.
TXU Energy
- Smart Edge 12 – This 12-month, fixed-rate plan includes a $30 bill credit if you use more than 800 kWh of electricity in a month. The Smart Edge 24 plan is also available for a 24-month term length.
- Flex Rewards – The Flex Rewards plan is a month-by-month, variable rate plan. Customers with this plan receive 3% cash back in credits that can be applied to their energy bills.
Reliant Energy
- Power On 24 – This plan has a 24-month term length and is fixed-rate. Customers with this plan enjoy no usage fees or markup on TDU charges.
Direct Energy
- Live Brighter Lite 12 – This is a fixed-rate plan with a 12-month term length. Customers
Average Texas electricity rates
According to the latest Energy Information Administration (EIA) data, the average residential Texas energy rate is 15.32 cents per kWh (5.8% lower than the national average of 16.26 cents per kWh). The latest commercial Texas electricity rate is 8.85 cents per kWh.
The following graph displays the average Texas electricity rates over the past four years based on the EIA data. The graph shows a pattern of rate increases during extreme weather, such as winter storms and hot summers.
Current Texas energy market trends for March 2025
The National Oceanic and Atmospheric Administration (NOAA) predicts warmer weather in Texas over the next few months as spring arrives. Moderate weather typically leads to cheaper energy costs because the electricity demand is lower. Our energy experts recommend shopping for energy plans when the weather is mild. With spring right around the corner, it’s a good idea to browse your options now. Enter your ZIP code on our marketplace to learn if prices have dropped and secure a lower rate for your electricity plan.
What is the power to choose electricity in Texas?
Residents and businesses can enjoy the benefits of a deregulated electricity market in most parts of Texas. Deregulation means you have the power to choose your electric company in Texas. You can explore Texas energy rates, providers, and plans most suitable for your home or business needs. SaveOnEnergy can help you shop, compare, and sign up for a Texas electricity plan in one place.
Instead of providing hundreds of options at once, you can filter for features, electricity companies, plan types, ratings, term lengths, and more. Then, you can select an energy plan and sign up directly on the SaveOnEnergy website or speak to a residential or business electricity expert for guidance. Our rates are affordable and straightforward to simplify the process and help you save money.
SaveOnEnergy.com is not affiliated with Power to Choose, powertochoose.org, or the PUCT.
How to compare electricity rates in Texas
Finding the best electricity plan in Texas requires considering several factors that impact your monthly electricity bill. Some important elements when shopping for cheap electricity plans include:
- Your Electricity Facts Label. An EFL contains important plan details, including your rate, the percentage of power from green energy, your contract length, and more. Review this document to understand what you’re paying for.
- Your energy usage. The amount of electricity your home consumes each month may impact the rate you pay. Most energy companies offer electricity plans with a tiered rate structure. Under a tiered structure plan, you will pay different rates depending on which tier your usage level falls into — 500 kWh, 1,000 kWh, or 2,000 kWh. The electricity rates shown on SaveOnEnergy are for the 1,000 kWh tier. You can check the rates for each tier in the plan’s EFL.
- Your location. Where you live can influence the energy rate you pay for electricity. Your local utility company charges transmission and delivery fees (often called TDU or TDSP charges), which can vary by location.
- Your contract length. Electricity companies may offer cheaper rates if you commit to a longer contract term. However, longer contracts could also have early termination fees (ETFs) if you cancel your electricity service before the contract ends. Read the EFL thoroughly before signing up for a plan to ensure you understand the details of the contract.
Switching electricity plans
If you’re unhappy with your energy plan, consider switching to a new electricity company. If you have a Texas fixed-rate plan, your provider may charge an ETF if you cancel before your contract expires. You can skip the fee if you switch electricity companies up to 14 days before your current plan ends or if you’re switching because you are moving outside the provider’s service area.
Types of electricity plans in Texas
Our marketplace features cheap electricity plans from trusted energy companies in Texas. Whether you’re looking for a residential or business electricity plan, our experts can help you sign up for the best electricity rates in Texas. You can generally find the most affordable energy plans on our marketplace from providers like 4Change Energy, Gexa Energy, and Frontier Utilities.
Learn more about the types of energy plans you may find on our marketplace.
- Fixed-rate: Offer stable pricing over a specified period, providing predictability for consumers. Fixed-rate plans are best for customers who want to sign up for an energy plan with price security and not worry about fluctuations in the market.
- Variable-rate: Fluctuate based on market conditions, offering potential savings but also increased risk. Variable-rate plans may be too complicated for some customers, but they can work well for those who are familiar with how the wholesale cost of electricity changes and are comfortable switching plans if prices spike.
- No-deposit: You can start service without an upfront payment, making it an accessible option for those with limited funds or low credit scores. While no-deposit plans offer more payment flexibility, they sometimes charge higher rates than fixed-rate options.
- Green energy: Use renewable sources like solar energy or wind power, promoting sustainability and reducing carbon footprint. To explore green energy plans in your area, enter your ZIP code and filter for renewable energy options.
- Business energy:Commercial businesses receive tailored pricing and services to meet their unique energy needs. Enter some basic information about your business on our commercial energy form page to begin building a customized business energy plan.
Commercial electricity rates in Texas
The current average Texas commercial electricity rate is 8.85 cents per kWh. SaveOnEnergy can help you find business electricity rates in Texas from cheap light companies like Ambit Energy and TXU Energy. Fill out our commercial electricity form to explore customized Texas commercial electricity rates today.
Same-day electricity with SaveOnEnergy
You can turn your power on today with same-day electricity services. If you’re moving to a new address and don’t currently have service, you can sign up for a plan before a specified cut-off time to qualify for priority move-in. Ask our energy experts about same-day electricity to learn more about this option.
Another way to start electricity service immediately is by signing up for a no-deposit plan, which allows you to skip the upfront deposit. These plans are useful if you aren’t satisfied with your current plan, forgot to set up a new plan upon moving, or want to avoid power interruption. Switching your electricity company does not guarantee your electricity service will switch the same day, but it is possible. Call the number on your screen to chat through your options.
Texas solar energy
Electricity customers across Texas are turning to solar energy as an affordable alternative to the state’s traditional electricity grid. Thousands of residents across major Texas cities like Houston, San Antonio, Austin, and Dallas have already gone solar. Aside from increasing your energy independence, switching to solar in Texas can help you reduce your carbon footprint while making long-term savings.
Are you considering Texas solar panels for your home or business? SaveOnEnergy can help you connect with a solar company, estimate your potential savings, or learn more about the solar installation process. Discover renewable energy options in Texas by calling the number on your screen or entering your ZIP code and filtering for green energy.
Moving to Texas in 2025?
If you’re moving to the Lone Star State, this may be your first time experiencing a deregulated energy market. For example, Lubbock, TX, recently joined ERCOT’s grid and deregulated its energy market. Lubbock residents can now choose their Texas energy provider, which may feel like an overwhelming task. The SaveOnEnergy marketplace eases the process. Compare providers and find the best electricity rates in Texas by entering your new ZIP code. You can delay starting electricity service at your new address for up to 90 days.
If you are moving within Texas and need help setting up your electricity, you can choose another energy provider or switch plans before your contract ends. You won’t have to pay an early termination fee if you cancel service because you are moving.
Texas energy FAQs
SaveOnEnergy is an online marketplace that lets you compare energy rates, plans, and providers in Texas and other deregulated states. Our marketplace is free to use, meaning you don’t have to pay anything until you’re ready to sign up for a plan. Enter your ZIP code or call today to explore current Texas electricity rates and plans in your area.
To contact SaveOnEnergy, call the number listed on your screen. This will connect you with one of our energy experts, who can help you find the best electricity plan for your home. You can also visit our contact page for more information about how to contact Texas energy companies and officials.
The cheapest electricity prices in Texas are currently available on the SaveOnEnergy marketplace from 4Change Energy, Gexa Energy, Frontier Utilities, and Express Energy. Energy rates frequently change due to shifts in the energy market and may differ based on your location. Enter your ZIP code or call us for accurate rates in your area.
Enter your ZIP code on the SaveOnEnergy marketplace to compare your options. You can filter for green energy options, free usage periods, specific providers, and more to find the right electric plan to fit your needs.
There are many ways you can lower your monthly electricity bill in Texas. Cutting back on how much electricity you use each month is the most straightforward way to lower your electricity bill. You can also turn on ceiling fans during warmer months, invest in energy-efficient appliances, and use appliances during off-peak hours. Some residents and businesses also switch to Texas solar for lower electricity bills.
If there is a power outage in your area, contact your Texas utility company to report the outage or receive updates about when your service will be restored. CenterPoint Energy, Oncor Electric Delivery, Texas-New Mexico Power and AEP Texas are the four major utilities servicing Texas.
Electricity rates fluctuate in Texas due to changes in demand, fuel costs, and weather conditions. These factors can affect energy generation, regulatory policies, and market competition among energy providers.
The average residential Texas electricity rate is 15.32 cents per kWh, based on the latest EIA update in November 2024. SaveOnEnergy can help you find affordable rates in your area. The cheapest electricity rate on our marketplace is currently 10.4 cents per kWh.