saving money with cheap electricity

How to Find Cheap Power Rates in Texas

  • Written By: Rebecca Bridges
  • Want to know what is the cheapest electricity company in Texas? There’s many ways you can search for it. “Cheap power near me.” “Cheap electricity for my home.” “Best Electricity Plan in <city> Texas.”

    Energy rates in Texas vary on location. You’ll need to shop by your zip code and usage level to compare options and find the cheapest power rates. ElectricityPlans is an energy price comparison website that helps you compare energy providers in the Texas market and win at the electricity shopping game.

    In a hurry? Jump directly to cheap energy rates in your area:

    Cheapest Power Prices in Houston (Centerpoint Area)

    Lowest Power Prices in Dallas Fort Worth (Oncor Area)

    Cheapest Electricity Rates in Texas (updated monthly)

    Finding Cheap Electricity Rates

    Know Your Usage

    Knowing your electricity usage helps you shop for an electricity plan that’s right for your home.

    Shop by 500, 1000 or 2000 kWh. Or enter your average electricity usage and shop based on your home.

    Read the Fine Print

    A lot of electricity plans look cheap at first. But look out for gimmicks like tiered rates and bill credits.

    We always highlight the fine print and tell you whether it’s a cheap rate or a gimmick.

    Shop by Zip

    You can easily find the cheapest electricity rates near you by shopping for rates by zip code.

    Just enter your zip code and sort by price to find the cheapest electricity rates near you.

    Below are some of the cheaper electricity rates in Houston and Dallas. You have many options when it comes to electricity companies. You can shop by zip code to find energy providers in other cities. Also make sure you shop based on energy usage. The rates here are based on 2000 kWh a month. You should always select your usage level under our Advanced Search features, once you enter your zip code.

    You may also notice that some of the cheaper plans are those that have a longer length contract term. That’s because the Texas wholesale energy market is in a state of flux right now.

    We think that long-term rates will be the cheapest rates for a while. If you choose one of these, just be aware that they will have a larger termination fee if you change your mind.

    You can find out more about Houston electricity rates in our city-specific section on that topic.

    Find out more about Dallas energy providers in our article focusing on that topic!

    Shop Cheap Power Prices in Texas By City

    Looking for electricity plans for a specific city? Enter your zip code to shop, or jump to any of these city pages to find electricity rates in your area.

    What about cheap business electricity rates? You can shop for commercial electricity and compare business energy plans online too. Businesses don’t have to miss out on cheap electricity. Shop Business Electricity Rates.

    How to Shop for Cheap Texas Power Rates

    Here’s the step by step on how to find cheap electricity prices in your area.

    Time needed: 5 minutes

    How to compare rates for cheapest electricity in Texas

    1. Search electricity providers by zip code.

    2. Select your monthly electricity usage

      Select the usage level closest to your monthly usage (500, 1000, 2000 kWh monthly). Or use the Electricity Bill Calculator to enter your own usage. You’ll find that under advanced search.

      electricity bill calculator texas

    3. Choose the cheapest electricity plan

      Sort by price to find the cheapest electricity rate based on your zip code and usage. You can view rates per kWh or estimated monthly bill for each electricity rate.

    4. Review the Plan Details section

      We read the fine print and highlight any minimum usage or bill credits in the summary. You’ll find all the math on how your bill is calculated so there’s no bill surprise. Pick “Basic Electricity” under Plan Features if you don’t want to deal with tiered rates, bill credits or other gimmicks.

    5. Enroll with the cheapest electricity company!

      There’s no point paying more for electricity. Pick the electricity plan with the cheapest price for the term you want.

    If your credit score is an issue, you may have to pay a deposit when the provider runs a credit check. However, you can qualify for prepaid electricity with no deposit. You can even get a fixed rate no credit check plan at a cheap price.

    What Types of Electricity Plans Give the Cheapest Rates?

    There are a number of different types of electricity plans in Texas. The tiered rate and bill credit plans look popular and show the lowest prices. BUT… don’t be fooled.

    We find that most people get the cheapest electricity rates when they shop a fixed rate plan. Here are the different types of electricity plans you can pick from.

    Fixed Rate Electricity Plans: A fixed rate plan secures your rate of electricity per kWh for the term of your agreement. The only way your price will change is if there are changes in regulation, or changes in delivery costs. If you don’t have to worry how much electricity you’re using, then basic fixed rate electricity plans are the way to go.

    Tiered Rate Plans / Bill Credit Plans: Tiered rate plans and bill credit plans target consumers that use a certain level of usage. But if you use more or less than that level, you may pay more than you expected. In other words, always read the fine print. We recommend Gexa Energy or 4Change Energy for tiered rate plans.

    Free Electricity Plans: Free nights, free weekends, free highest usage days. These plans use data from your smart meter to give you free electricity at certain times. We recommend Chariot Energy for cheapest free nights electricity.

    Renewable Energy 100% Green Plans: We recommend Rhythm Energy for low cost 100% green energy plans. Every plan they offer includes renewable energy.

    Prepaid No Deposit Electricity: Low credit score? Get power with pay-as-you-go electricity. We recommend Payless Power, who has both fixed rate and variable month to month low rates.

    There are a variety of plans to meet your needs. And we have lots of partners offering great rates, and some offering promo code discounts. Avoid variable-rate plans to make sure you don’t pay too high a price.

    Find Cheap Electricity Rates in Your Area

    What does “Cheap Power” Mean in Texas?

    First off, what’s cheap power mean in Texas? You’re basically looking for the energy company with the lowest cost per kWh. And that means the lowest total average cost per kWh including delivery.

    That difference in pricing can be confusing. And that’s why the Public Utility Commission of Texas (PUCT) requires that all retailers provide their average price per kWh at three usage levels: 500 kWh, 1000 kWh and 2000 kWh. You can find this information on the electricity facts label from the energy provider. That allows consumers to compare apples to apples across all companies. Easy, right?

    But making the comparison is not so easy.

    First, it is important to compare electricity rates from multiple providers. This can be done easily by using an online electricity rate comparison tool (which is why you’re here, right?)

    But tiered rates, bill credits, free electricity and special offers all come into play when you look at the power pricing. You think you are getting a cheaper power rate, but you may end up paying more than you expected.

    And sometimes it looks like you have the cheapest Texas electricity rate, only to get surprised with a high electricity bill.

    To find the best energy rate for your home, always shop based on your usage. To get started, enter your zip code below, then select your usage level (500, 1000, 2000 kWh) under Advanced Search. Or enter your average usage to get specific pricing for your home. Then, review true fixed rate plans, what we call Basic Electricity. That eliminates all the bill credit and gimmicky rates. Try it now!

    Shop Electricity Providers by Zip Code for Cheap Kilowatt Rate

    How Does Energy Usage Affect My Electricity Price?

    Knowing your electricity usage is key to getting the best cheap power plan. Here’s why.

    For example, most retail energy companies display average price per kWh at 2000 kWh a month on their web site. And the Power to Choose state shopping site displays at 1000 kWh.

    As a result, retailers constantly introduce new electricity rates that “look good” at a specific average usage kWh level. They game the system to try to get one over on you, the consumer.

    And that’s why you have to watch out. Because an electricity rate that looks excellent at 1000 kWh a month may be a horrible choice if you use 1500 kWh a month. And on the other hand, a plan that looks good at 2000 kWh a month could be a bad choice if you actually use 900 kWh a month. And there may be fees, like a minimum usage charge or high usage charge.

    Here’s an example:

    image shows electricity plan pricing gimmick

    If you bought this plan on the 2000 kWh a month rate, but only used 1000 kWh a month, you would be very unhappy. In other words, a 30% difference in the rate you would pay!

    At ElectricityPlans, we review the fine print in every power plan. We review the math, and break it down in a Pricing Details section. That way you can see how the plan works … even if it’s complicated, like the one below!

    image shows how confusing electricity rates math can be which makes it hard to find cheap electricity rates.

    So what’s your bill going to be on this plan? Exactly. That’s why you just type in your usage and we’ll calculate your price per kWh for you.

    Plus, when you are scanning rates, we make it easy to see at a glance if a plan has complicated bill credits and tiered rates to look out for. Just look at our one-line summary for each plan. We’ll help you find cheap power prices AND watch out for gimmicks like this.

    image shows how to find cheap electricity plans without gimmicks by reviewing the plan one line summary.

    FAQs About Cheap Electricity Rates in Texas

    Are there any discounts or promotions available for cheap electricity in Texas?

    Yes, there are discounts and promotions available for cheap electricity in Texas. You can find a variety of electric companies that offer discounts or promotions through And you can find them with this list of promo codes for discount on Texas electricity.

    What are the benefits of switching to a cheaper electricity plan in Texas?

    There are many benefits to switching to a cheaper electricity plan in Texas. The number one benefit? You’ll save money on your monthly electricity bill with no difference in reliability for your power. The second benefit is ability to take advantage of special rates and plans for new customers. The third benefit is you get to use your power to choose your supplier.

    How does the cost of cheap electricity in Texas compare to other states?

    The cost of cheap electricity in Texas is about average when compared to other states. The average cost of electricity in Texas is $0.11 per kilowatt hour (kWh), which ranks it as the 27th cheapest state in the nation. The national average is $0.10 per kWh. But that’s based on data from the site. And with recent electricity prices in Texas, the 2022 average price is around 14-18 cents per kWh depending on your delivery utility.

    Who can switch to a new provider in Texas?

    Residents and business owners can shop for an electricity provider in Texas. But only part of Texas is deregulated. If you live in Austin, San Antonio, El Paso, Beaumont, or much of The Woodlands, you can’t switch providers. If you live in a community with an electrical coop, you also can’t switch providers. Check your zip code to see if you can switch to a new energy supplier in Texas.

    About Rebecca Bridges

    Rebecca Bridges has worked in deregulated energy markets since 2001. As chief marketing officer for ElectricityPlans, she focuses on helping consumers save on their electricity bills and find the best electricity plans. Outside of work, Rebecca uses her marketing experience to support dog rescue and can often be found hiking or biking local trails.

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