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Key Points
- According to our energy experts, 4Change Energy, Frontier Utilities, Express Energy, and Gexa Energy currently offer the best electricity rates in Houston.
- The lowest energy rate in Houston on our marketplace is 10.2 cents per kWh from Express Energy and 4Change Energy.
Average Houston electricity rates
In Houston, electricity rates are structured based on usage in kilowatt-hours (kWh). Based on our marketplace data, the average purchase price at each usage level for residential customers is as follows:
- 19.94 cents for 500 kWh
- 14.71 cents for 1,000 kWh
- 16.61 cents for 2,000 kWh
Best residential rate in Houston, TX
Today’s cheapest residential rate in Houston on the SaveOnEnergy marketplace is 10.2 cents per kWh. This rate is 33% lower than the average Texas electricity rate of 15.32 cents per kWh. Call the number on your screen to speak with one of our energy experts and find the cheapest power plans in your area.
Your power to choose electricity in Houston
Deregulation allows you to choose from various electricity providers in Houston instead of being limited to your local utility. Electricity providers in Houston compete for customers by offering affordable rates and plans in the deregulated market. You can compare electricity rates and features from multiple Houston electric companies to find a lower rate. SaveOnEnergy can help you find a cheap light company or plan — simply enter your ZIP code to discover the cheapest electricity rates in Houston today.
SaveOnEnergy.com is not affiliated with Power to Choose, powertochoose.org, or the PUCT.
Best energy companies in Houston
Retail electric providers (REPs) and utility companies have different responsibilities in a deregulated electricity market. Electricity companies sell electricity to customers, offer plans, and handle billing.
Houston residents can choose from top providers like TXU Energy, Gexa Energy, 4Change Energy, Frontier Utilities, and many other trusted light companies featured on the SaveOnEnergy marketplace. Enter your ZIP code to browse your options.
| Electricity Provider | Best for... |
|---|---|
| 4Change Energy | Community involvement |
| Atlantex Power | Fixed-rate options with varying features |
| Direct Energy | Electrical protection plans |
| Discount Power | Variety of plan types |
| Express Energy | Deferred payment plans |
| Frontier Utilities | Variety of competitively priced plans |
| Gexa Energy | Green energy plans |
| Payless Power | Prepaid and no-deposit electricity plans |
| Reliant Energy | Moving assistance |
| TriEagle Energy | Energy monitoring and bill credit reward programs |
| TXU Energy | Overall experience |
CenterPoint Energy: Houston’s utility company
The utility company for Houston is CenterPoint Energy. Texas utilities are responsible for delivering electricity to customers’ homes, maintaining power lines and electrical infrastructure, and restoring power during outages. While you can choose your Houston electric provider, your utility company is based on where you live. If you experience a power outage in Houston, contact CenterPoint Energy, not your energy provider.
The fees from your utility will show up as transmission and distribution utility (TDU) or transmission and distribution service provider (TDSP) charges on your monthly electricity bill. They are separate from your energy provider’s rate.
How to find the best light companies & rates in Houston
Houston electricity rates vary based on your location. This is mainly due to transmission and distribution fees local utility companies charge for delivering energy to your home. You can use the free SaveOnEnergy marketplace to find accurate electricity rates in Houston. Compare the best electricity providers in your area, filter your options, and sign up for a plan — all in one place. Here’s how the SaveOnEnergy marketplace works:
- Enter your ZIP code. SaveOnEnergy shows you today’s most competitive electricity rates and plans from the best energy companies in Houston.
- Review your options. Filter your search by term length, specific providers, renewable energy, and more. This will help us tailor the results to find the best plan for your household.
- Sign up online or over the phone. You can sign up online or over the phone in minutes. Make sure to read the Electricity Facts Label (EFL) to review important details about your new plan.
How to switch electricity companies in Houston
SaveOnEnergy can help you switch energy providers in Houston. To get started, enter your ZIP code on our marketplace to explore your options. You can also call the number on your screen to speak with a member of our team.
Keep in mind that some providers charge an early termination fee (ETF) if you end your contract early. Check your EFL to see if there are any costs associated with switching your plan. Otherwise, your new provider will handle switching your service.
Houston weather outlook for March 2025
Texans can expect warmer temperatures as Houston heads into spring this March. Our energy experts advise shopping for electricity during early spring due to mild temperatures. Moderate weather often decreases the cost of energy because the demand is lower compared to summer or winter. If you want to find a cheaper electricity rate, explore plans on our marketplace this March. You may be able to secure a more affordable power plan. Enter your ZIP code on SaveOnEnergy or call our team for more information.
Solar energy in Houston
Installing home solar panels could protect you from price fluctuations in the energy market by providing an additional source of electricity. SaveOnEnergy can help you understand the solar panel installation process and connect you with a solar company in your area. Solar energy in Houston is quickly growing, and Texas currently ranks second in the nation for solar energy generation. Read through our solar guides and connect with our solar experts to begin your renewable energy journey.
Moving to Houston?
Houston, the largest city in Texas, sits near the Gulf of Mexico in the southeastern part of the state. Those moving to the city can enjoy its award-winning restaurants, arts and museums, historic districts, and the famous Space Center Houston.
Before moving to Houston, check with your current electricity provider to determine whether it offers service in your new neighborhood. You may be able to keep your current energy plan. However, if you want to find a lower energy rate or need to switch electricity providers, SaveOnEnergy can help you. Use our marketplace or contact our energy experts to find cheap electricity in Texas up to 90 days before your move.
Sign up for same-day electricity
If you’re in a time crunch or forgot to alert your electric company of your move, you can get same-day electricity in Houston. Certain energy plans offer immediate electricity access after sign-up. Our energy experts can help you find electric companies in Houston to start service today and avoid power interruptions. Call the number on your screen to explore your options.
Types of energy plans in Houston
Houston energy companies offer different types of electricity plans. The most common types of plans include fixed-rate, variable-rate, and no-deposit plans. Our energy plan resources can help you navigate the options and find the best electricity plans in Houston.
Fixed-rate energy plans
A fixed-rate plan secures your electricity rate for the duration of your contract, typically 12 to 36 months. This means your rate won’t change with market fluctuations. However, you may need to pay an ETF if you cancel the contract early.
Variable-rate energy plans
Depending on when you sign up, a variable-rate plan could give you a lower rate. No contract is required with this type of plan, but your electric rate may fluctuate monthly based on the wholesale electricity price. With a variable-rate plan, expect higher rates during periods of increased energy demand, like hot summers or extreme weather events.
No-deposit plans
Electricity providers may ask for a deposit upfront to start your service. However, some Houston power companies offer no-deposit electricity plans for customers who don’t want to pay a deposit or sign a contract. Prepaid plans, like the ones offered by Payless Power, allow you to avoid the deposit and pay for electricity ahead of time.
Green electricity plans
Texas is a national solar and wind power leader, offering Houston residents and businesses many green energy options. Every Texas electricity plan includes a percentage of renewable energy. You can check for the exact amount on your plan’s EFL. Some providers specialize in 100% green energy plans, including Gexa Energy and Green Mountain Energy. Enter your ZIP code and filter for green energy to find renewable energy options in Houston.
Business energy plans
Deregulation also gives business owners the power to choose from various electricity companies in Houston. You can compare business electricity rates in Houston on the SaveOnEnergy marketplace and lock in the most budget-friendly commercial electricity price. Fill out our business energy form to compare the best electricity rates for your business, or call the number on your screen to speak with a commercial electricity expert.
Learn more about how deregulated energy works
Houston energy FAQs
Right now, you can find the cheapest rate on our marketplace from Gexa Energy at 10.2 cents per kWh. 4Change Energy and Frontier Utilities also offer low rates.
Weather patterns often impact how much electricity we use. For example, we rely on air conditioning to stay cool during high temperatures. Similarly, we turn up the heat during the winter to stay warm. Extreme weather and the resulting high demand can cause electricity rates to spike. Many customers also experience increased energy bills due to higher consumption levels. High demand can strain the electricity grid and lead to power outages if it becomes overwhelmed.
Reducing your home’s energy consumption is the simplest way to lower your electricity bill. You can achieve this by practicing energy-saving habits like turning off lights in unused rooms, using power strips, unplugging electronics when not in use, or upgrading to energy-efficient appliances.
Use our energy usage calculator to better understand your home’s electricity consumption. You can also switch electricity plans at a lower rate, which may help you reduce your energy bills.