a small lime green home in texas, overlayed with the words "electricity for small homes" leads to an article helping consumers shop when their home is under 2000 square feet.

Electricity Plans for Small Homes

  • Written By: Rebecca Bridges

  • You bought a smaller home under 2000 square feet for a reason. A small home is easier to manage, fits a smaller budget, is perfect for those downsizing, or maybe you fell in love with that 1920s bungalow or 1970s ranch. Your small home should come with a smaller electricity bill. The best electricity plans for large homes with high usage are basic fixed rate plans or bill credit plans that target specific usage levels.

    Key to finding the right plan? Shopping by usage. If you have your usage from a single bill, use our BillSmart™ Low Bill Finder to get custom recommendations on your usage.

    Best Electricity Plan for Small Texas Homes

    Our top recommendation for low usage homes is a basic fixed rate electricity plan. You’ll pay the same fixed energy rate per kWh for the term of your agreement. The only reason your effective rate will vary slightly with usage is because of any monthly base charges from the provider or the delivery/utility company.

    Here are the best fixed rate electricity plans for small homes. This list excludes bill credit plans, which we discuss further below.

    Shop Fixed Rate Plans for Small Texas Homes

    Pro Tip: The electricity rates for bill credit plans show advertised rates that look cheaper than the fixed rate options. But you have to look at the effective rate based on what you actually use. Use our BillSmart™ Calculator to see what you actually pay each month, or the CostCurve™ for a graphical view of what you’ll pay at any usage level. Both tools are available in Plan Details. Avoid a bill surprise when you look at real bill estimates.

    Bill Credit Plans for Small Homes with Low Usage

    Many electricity suppliers offer bill credit plans targeted at homes that use 500 or 1000 kWh a month making the advertised rate appear super low. But what actually matters is what you pay, which is the effective rate. The effective rate incorporates the bill credit at your specific level of usage

    For example, if you earn a bill credit of $125 at 1000 kWh, you’ll pay the advertised rate of 6.8¢ including delivery if you use that exact amount. But use 950 kWh the bill credit disappears, and you pay 19.3¢ kWh instead. Use 1500 kWh and your effective rate is 10.3¢. It’s all about the math.

    Before you sign up for a bill credit plan, we beg and plead that you (1) look at the Plan Details section to see the actual energy rate and (2) use the BillSmart Calculator and CostCurve™ to see your estimated bills and effective rate.

    Pro Tip: The rates shown below are the advertised rate for exactly 1000 kWh. Review the plan details before you sign up. Bill credit plans can be a great option if your usage is always 1000-1500 kWh per month.

    Shop Bill Credit Electricity Plans for Small Homes

    Estimating Usage: How Much Electricity Does a Small Home Use?

    If you’re moving in to a new small home, you may wonder how much electricity your home will use.

    We know from realtor websites that an average Texas home is 2,031 square feet. And we also know from the Energy Information Administration data that the average home in Texas uses 13,152 kWh a year. Doing the math that’s 6.48 kWh per square foot for a home in Texas. You can use that to estimate electricity usage for a small home in Texas. We’ve done just that in the chart below.

    Square FootageEstimated Annual kWh UsageEstimated Monthly Average kWhFebruary kWh Usage (lowest usage month)August kWh Usage (highest usage month)
    8005,184432250750
    9005,832486281843
    10006,480540312937
    11007,1285943441,031
    12007,7766483751,124
    13008,4247024061,218
    14009,0727564371,312
    15009,7208104691,406
    160010,3688645001,499
    170011,0169185311,593
    180011,6649725621,687
    190012,3121,0265931,780
    200012,9601,0806251,874

    Remember that there are a lot of factors at play here such as the age of the home, any energy efficiency upgrades, electricity usage habits and number of occupants.

    Use the chart above as a best guess for usage. If you’re renting, you can ask your apartment manager or leasing agent if they have information. If you’re buying a new home, you can request past usage information from the seller. New construction? Your builder will be able to provide electricity usage estimates.

    Photo Credit: ©irina88w from Getty Images Signature via Canva.com

    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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