Umair Gaines
Texans have had the freedom to choose their electricity provider since 1999, and today there are dozens of competitive electricity providers in the state. However, deregulation has made it confusing for customers to find the best provider and plan. Prices can vary depending on time of year, location, home size, and energy usage. Generally, the more electricity your home or business uses, the cheaper your electricity rate will be. There are also various types of plans available, such as fixed-rate plans, variable-rate plans, and free nights and weekends plans, each with its own advantages and disadvantages. To find the cheapest electricity rates in Texas, customers can use online marketplaces and comparison tools, which allow them to shop based on their average usage and unique energy needs.
| Characteristics | Values |
|---|---|
| Cheapest electricity plan for homes | Frontier Saver Plus 24 from Frontier Utilities with a rate of 9.00¢ cents in CenterPoint |
| Lowest residential electricity rate | 9.00¢ ($0.0900) |
| Average residential electricity rate | 15.82¢, 16.53¢ per kWh, 16.76¢ per kWh, 17.10¢ per kWh |
| Lowest commercial electricity rate | 6.23¢ ($0.0623) |
| Average commercial electricity rate | 7.96¢ |
| Cheapest electricity rate | 8.9¢, 9.2¢ per kWh |
| Average electricity rate | 9.2¢ per kWh |
| Cheapest electricity companies | APG&E, Energy Texas, Frontier Utilities, Discount Power, Gexa Energy |
| Cheapest electricity rate plan | Fixed-rate plan |
| Factors influencing average energy costs | Time of year, location, home size, energy patterns and needs |
| Ways to lower electricity bill | Cut back on electricity usage, turn on ceiling fans during warmer months, invest in energy-efficient appliances, use appliances during off-peak hours, switch to Texas solar |
| Utility companies | Oncor, Centerpoint, AEP |
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What You'll Learn
Cheapest providers in Texas
Texas has had a competitive energy market since 1999, with dozens of providers offering a range of plans and rates. The best option for you will depend on your energy usage and needs.
To find the cheapest electricity rates in Texas, you should first understand your energy usage. How much electricity do you use each month? Is your usage higher in the summer and lower in the winter? Knowing your usage will help you find the best rate and avoid common traps, such as tiered plans that may end up costing more than expected.
Once you know your usage, you can start comparing providers and rates. Online marketplaces like Choose Texas Power, EnergyBot, SaveOnEnergy, and Electricity Plans can help you compare rates from different providers based on your usage and location. These platforms often provide additional information and tools to help you make an informed decision.
Some of the cheapest plans and providers in Texas as of August 2025 include:
- APG&E, offering rates as low as 9.2 cents per kWh on Electricity Plans and SaveOnEnergy.
- Frontier Utilities, with a residential rate of 9.00 cents in CenterPoint, according to EnergyBot.
- Discount Power, with bill credit bundles that discount your bill by $125 if you use at least 1,000 kWh of electricity, as mentioned on Choose Energy.
- Gexa Energy, which offers 100% renewable energy plans, as suggested by Choose Texas Power.
- Energy Texas, a fighter brand with an attractively priced 12-month contract to attract new customers, as noted by Electricity Plans.
- Champion Energy, with competitive 12 and 24-month contract rates, including an exclusive discount of 4/10 per kWh, as recommended by Electricity Plans.
It's important to remember that the cheapest rate may not always be the best option for your specific needs. Fixed-rate plans can provide stability, while variable-rate plans may be unpredictable. Additionally, consider your usage habits and whether bill credit or free nights and weekends plans align with your energy usage patterns.
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Fixed-rate plans
Texas has a deregulated energy market, which means that Texans have the power to choose their electricity provider from dozens of competitive providers. The cheapest electricity plan for homes in Texas available today is the Frontier Saver Plus 24 from Frontier Utilities with a rate of 9.00¢ per kWh in CenterPoint. The lowest residential electricity rate in Texas is 9.00¢, while the average rate is 15.82¢. The lowest commercial electricity rate in Texas is 6.23¢, and the average rate is 7.96¢.
When choosing a fixed-rate plan, it is important to understand your usage habits. Knowing your usage history will help you get the best rate and avoid common traps. For example, bill credit plans can be a great opportunity to save when they match your usage level, but they could be more expensive if you do not meet the specified threshold. Similarly, free nights and weekends plans can complement those who mostly use energy at night but may be costly for those who work from home during the day.
To find the best fixed-rate plan for your needs, you can use online marketplaces such as Choose Energy, SaveOnEnergy, or EnergyBot. These platforms allow you to compare energy rates, plans, and providers in Texas by entering your ZIP code and linking your utility data. You can then pick the cheapest price for electricity based on your usage habits and energy needs.
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Variable-rate plans
To find the best electricity plan for your home or business, you can compare your energy usage data with the cheapest electricity rates available from dozens of retail electricity providers. Your energy usage is the biggest factor that impacts your electricity rate. Generally, the more electricity your home or business uses, the cheaper your electricity rate will be.
There are several types of energy plans available. Free nights and weekends plans, for example, offer free energy during nights or weekends. This option could benefit those who are typically out of the house for most of the day. TXU Solar Club is another membership-based plan that allows you to offset the first 500 kWh of your electricity with solar credits for a lower rate.
Bill credit plans can also help you save money when they match your usage level, but they could be more expensive if you do not meet the specified threshold. To avoid this, it is important to understand your usage habits and peak usage month. Knowing your usage history will help you get the best rate and avoid common traps and tiered plans that look cheap but are sometimes double or triple the cost you expected.
To find the cheapest electricity rates in Texas, you can use online marketplaces such as SaveOnEnergy, Choose Energy, EnergyBot, and Choose Texas Power. These platforms allow you to compare energy rates, plans, and providers, and some even offer tools to link to your usage data.
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Bill credit plans
In the deregulated Texas electricity market, bill credit plans are often advertised as a way to save money on electricity bills. These plans offer a credit on electricity bills once a certain usage threshold is met. For example, a plan might offer a $50 credit if you use between 1000 and 2000 kWh in a billing cycle.
However, bill credit plans have been criticised for deceptive advertising, with the true costs often being much higher than the advertised rates. A study by EnergyBot found that bill credit plans were, on average, 34% more expensive per kWh than traditional plans, resulting in customers spending $816 more per year compared to those with traditional plans. The complex rate structures of bill credit plans also make it difficult for consumers to predict their actual monthly costs, often leading to unexpected expenses.
While it is possible to save money with a bill credit plan compared to a simple fixed-rate plan, those savings are difficult to achieve in Texas due to the wide range of temperatures and varying usage throughout the year. As such, it is crucial to carefully analyse past kWh usage and thoroughly understand the plan's terms before enrolling in a bill credit plan.
Some bill credit plan options in Texas include:
- Discount Power's Bill Credit Bundle 12 and Bill Credit Bundle 24 plans, which discount your bill by $125 if you use at least 1000 kWh of electricity.
- Gexa Energy's Eco Saver Premier 12 plan, which offers a substantial bill credit of $150 when you use over 2000 kWh of electricity.
- TXU Solar Club, a membership to local solar farms in Texas, allowing you to offset the first 500 kWh of your electricity with solar credits for a lower rate.
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$9.99
Energy usage
Texas offers a diverse range of energy plans, including fixed-rate and variable-rate options. Fixed-rate plans lock in a specific rate for a set period, providing stability and protection against price fluctuations. On the other hand, variable-rate plans offer flexibility but carry the risk of unpredictable bills when market prices surge.
To make informed choices, Texans should analyze their historical energy usage. This involves reviewing past electricity bills to determine the typical monthly kilowatt-hour (kWh) consumption. By understanding their baseline usage, Texans can better navigate the various pricing tiers offered by energy providers.
Bill credit plans offer savings when they align with usage levels. Free nights and weekends plans cater to those who primarily use energy during off-peak hours, while plans with usage-based tiers may charge different rates for consumption above certain thresholds.
Additionally, Texans can consider joining the TXU Solar Club, a membership program that provides access to local solar farms. This option allows members to offset their electricity usage with solar credits, reducing their reliance on the traditional grid and improving their carbon footprint.
In summary, energy usage plays a pivotal role in selecting the most suitable and cost-effective energy plan in Texas. By understanding their usage patterns and exploring the various plan options, Texans can make informed choices to optimize their energy expenses.
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Frequently asked questions
You can find the cheapest electricity rates in Texas by using online tools that let you compare energy rates, plans, and providers. These tools will ask for your zip code and average monthly usage to show you the estimated true prices for your home.
The average Texas electricity rate is between 15.82 cents and 17.10 cents per kWh.
The cheapest electricity plan in Texas as of August 2025 is the Frontier Saver Plus 24 from Frontier Utilities with a rate of 9.00 cents in CenterPoint.
A good electricity rate in Texas takes into account your unique energy needs and lands somewhere between the average and lowest available price. Generally, a cheap rate across Texas is around 9 to 13 cents per kWh, but this can change depending on the time of year and your home size.
You can lower your electricity bill in Texas by cutting back on how much electricity you use each month. You can also turn on ceiling fans during warmer months, invest in energy-efficient appliances, and use appliances during off-peak hours.
