saving money with cheap electricity

How to Find Cheap Power Rates in Texas

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

Across the state, people search for cheap electricity or the cheapest electricity. Because no one wants to pay too much for electricity. And no one wants to feel like they got (ah hem) scr*wed by a power plan they didn’t understand.

But how do you find the cheapest electricity company in Texas? Here’s how.

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

Cheapest Power Prices in Houston (Centerpoint Area)

Lowest Power Prices in Dallas Fort Worth (Oncor Area)

Finding Cheapest 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 cheapest electricity rates in Houston and Dallas.

Cheapest Electricity Rates & Plans in Houston Area (Centerpoint)

Provider Plan Name Term Rate/kWh
Frontier Utilities Frontier Max 12 12 10.5 ¢ Details
MP2 Energy EV Free Charging Plan 24 24 10.7 ¢ Details
MP2 Energy EV Free Charging Plan 12 12 10.9 ¢ Details
Gexa Energy Gexa Saver Premium 12 12 10.9 ¢ Details
New Power Texas Power of One 12 Month 12 11.3 ¢ Details
MP2 Energy Solar Buyback 24 24 11.3 ¢ Details
Champion Energy Services Champ Saver 36 36 11.7 ¢ Details
MP2 Energy Solar Buyback 12 12 11.7 ¢ Details
Reliant Energy Reliant Basic Power 9 9 11.9 ¢ Details
Discount Power Value Plus 12 12 11.9 ¢ Details
4Change Energy Helpful Saver 24 24 11.9 ¢ Details
Think Energy Think Simple 24 24 12.0 ¢ Details
Champion Energy Services Champ Silver 24 24 12.0 ¢ Details
Pulse Power Texas Fixed 36 36 12.1 ¢ Details
Think Energy Think Simple 12 12 12.1 ¢ Details
Champion Energy Services Champ Saver 24 24 12.1 ¢ Details
Payless Power Autopay & Save 12 12 12.2 ¢ Details
Veteran Energy Select 36 36 12.3 ¢ Details
Discount Power Saver 24 24 12.3 ¢ Details

Cheap Electricity Rates & Plans in Dallas Area (Oncor)

Provider Plan Name Term Rate/kWh
Frontier Utilities Frontier Max 12 12 9.3 ¢ Details
Gexa Energy Gexa Saver Premium 12 12 9.9 ¢ Details
MP2 Energy EV Free Charging Plan 24 24 10.1 ¢ Details
MP2 Energy EV Free Charging Plan 12 12 10.4 ¢ Details
MP2 Energy Solar Buyback 24 24 10.7 ¢ Details
New Power Texas Power of One 12 Month 12 10.8 ¢ Details
Champion Energy Services Champ Saver 36 36 10.8 ¢ Details
TXU Energy TXU Energy Saver's Discount 12 12 10.9 ¢ Details
4Change Energy Helpful Saver 24 24 10.9 ¢ Details
Champion Energy Services Champ Silver 24 24 11.1 ¢ Details
Discount Power Value Plus 12 12 11.1 ¢ Details
MP2 Energy Solar Buyback 12 12 11.1 ¢ Details
Champion Energy Services Champ Saver 24 24 11.2 ¢ Details
Pulse Power Texas Fixed 36 36 11.3 ¢ Details
Think Energy Think Simple 24 24 11.4 ¢ Details
Champion Energy Services Green Energy 24 24 11.4 ¢ Details
TXU Energy TXU Energy Solar Saver 12 12 11.5 ¢ Details
Reliant Energy Reliant Basic Power 9 9 11.5 ¢ Details
Discount Power Saver 24 24 11.5 ¢ Details
Rhythm Simply Green 12 12 11.6 ¢ Details

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 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. That allows consumers to compare apples to apples across all companies. Easy, right?

But it’s not so easy.

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 cheap power rate, but you may end up paying too much.

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

That’s why we’re here. You can shop for the cheapest electricity plan and compare rates by zip code. Use your average electricity usage to find the cheapest rate for your home. And then read our easy plan summaries where we highlight the fine print. Because we’re the only online shopping site that does this — making us the easiest way to shop for electricity.

Search Electricity Providers by Zip Code to Find Cheapest kWh Rate

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 usage level

    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.

    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.

  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.

What is the Cheapest Electricity Company in Texas?

We’re always looking out for the cheapest electricity rates for our customers. But who has the cheapest electricity in Texas per kWh?

Here are the providers that consistently have some of the cheapest electricity rates in Texas.

Rates vary all the time, but we always show the best value electricity plans as our featured plans. Just sort rates from cheapest to highest and search rates by zip code.



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 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.

Variable Rate Plans (Month to Month electricity): A variable rate plan has an energy rate that changes monthly, usually without any notice. As a result, that can leave you open to changes in market conditions. You will find some month to month electricity plans on our site, but not many. We believe in the benefits of Fixed Rate pricing. But if it’s mid-summer and all the fixed rate plans look expensive? You can always go month to month for one month, then check to see if fixed rate plan prices have dropped.

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. In addition, use the Electricity Bill Calculator feature to see if you are really getting low rates. 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. Make sure you understand your electricity usage by time of day before signing up for one of these plans. We recommend Pulse Power for cheapest free nights electricity.

Renewable Energy 100% Green Plans: We recommend Rhythm for low cost 100% green energy plans. They also have the benefit of a satisfaction guarantee and a pick-your-due-date program.

Prepaid No Deposit Electricity: Low credit score? Get electricity set up by pre-paying for your electricity. We recommend Payless Power, who has both fixed rate and variable month to month low rates.

Find Cheap Electricity Rates in Your Area

How Does 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.

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.

How to Find Cheapest Electricity Rates by Size of Home

In the sections above, we recommend to shop based on your usage to find the cheapest electricity prices in your area.

But if you don’t know your electricity usage, you will need to estimate it. Here’s a helpful guide:

  • Usage assumption to find cheap electricity for a small apartment. Assuming a 750 square foot apartment, energy use is around 750 kWh/month.
  • Usage assumption to find cheap electricity for a large apartment. Assuming a 1000 square foot apartment, energy use is around 1000 kWh/month.
  • Usage assumption to find cheap electricity for a small house. A home around 1500 square feet will use around 1250 kWh/month.
  • Usage assumption to find cheap electricity for a large house? A large home around 3800 square feet would use around 2200 kWh/month.

Check our article on how to find the Average Electricity Bill in Texas for more info on electricity usage by size of house.

Renter’s Guide to Cheap Electricity for Apartments

If you are moving into an apartment and looking for cheap electricity, all of the above content applies to you.

It doesn’t matter if you are renting or buying your home, you can sign up for any electricity plan.

Ideally it would be nice for the length of your electricity contract to equal the length of your lease agreement. However, if you find yourself in a temporary living situation where you need to sign a short-term lease, what should you do about your electricity contract? You might think that signing up for a month-to-month contract is your best option, but that is a mistake. Month-to-month electricity plans are notoriously the most expensive electric rates, and should only be used when absolutely necessary.

 There are contract early termination fee exceptions for customers who move while they are in an electricity contract. Basically, you can’t be charged an early termination fee for breaking your electricity contract when you move out.

When shopping for an electricity plan for your apartment, ask your leasing agent of landlord for the historical usage for your new place. If they don’t have that, see if they can give you an estimated electricity usage for your unit. If they don’t have the information, you can shop assuming 1000 kWh a month for a 2 bedroom apartment, and 750 for a 1 bedroom apartment. Shopping by monthly kWh usage is the best way to get the right plan at the cheapest price.

Cheapest Electricity Company in Texas with No Deposit

If your have a credit score below 600, you will probably have to pay a deposit for your electricity. That deposit can be up to two month’s worth of your estimated electricity. And you won’t get back that deposit until you’ve made 12 months of on-time payments.

So the better way to get cheap electricity with no deposit is a prepaid electricity option.

With prepaid electricity, you pay in advance for your electricity. Setting up an account can cost as little as $39 to start.

You can go month to month with a variable pre-paid rate. But we recommend a fixed price plan because it will protect you against rate changes. Our favorite is the fixed rate 12 month prepaid electricity plan from Payless Power. The reason? It’s the only prepaid electricity plan that gives you price certainty. You can read our review of Payless Power prepaid electricity plans. Or call them at 1-866-934-3451 to enroll.

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