Compare Houston Electricity Rates (2023 Best Prices)
Here’s a quick overview of Houston electricity rates:
- Current average rate of retail electricity: 12.55 cents per kWh
- Average monthly electric bill: $160
- Average monthly energy use: 1,300 kWh
Each product and or company featured here has been independently selected by the writer. You can learn more about our review methodology here. If you make a purchase using the links included, we may earn commission.
Whether you’re moving to the area and looking for power connection or simply shopping for the best electricity rates in Houston, EcoWatch is here to help. We’ve narrowed down the top clean-energy providers in the city, and by using this tool or clicking the links below, you can compare prices and find the right plan for you.
Houston has what’s called a “deregulated energy market,” which gives consumers the power to choose their own electricity provider. While the idea seems simple enough, deregulated energy can be a confusing industry to understand, and many consumers wind up paying way too much. Let’s compare electric rates in Houston so you don’t overpay for energy.
Houston Energy Rates
Houston is known as the Energy Capital of the World, hosting a slew of headquarters and intellectual capital for pretty much every segment of the energy industry.1 The city has also had what’s called a “deregulated energy market” since 2002, which allows residents to shop for their own electricity providers.2
As a result, there are well over 100 different Houston electric companies that are competing for your business. These companies, also called retail electricity providers (REPs), offer plans that vary when it comes to contract terms, quality and environmental impact. On top of paying your REP, you’ll be charged an additional fee from your transmission and delivery utility company (TDU) to cover the costs of delivering electricity, meter reading, wiring and more.
If you live in the Houston metropolitan area or any of its surroundings, your TDU is likely CenterPoint Energy.3 CenterPoint’s current rates are about $0.04 cents per kWh of power usage, plus a monthly charge of $4.39. You’ll pay these charges no matter what energy plan or provider you choose, and they’ll be baked into the monthly bill from your provider.
Read Also: What Are the Best Energy Rates in Texas?
Want to see the cheapest rates available in Houston right away? You can use this tool or click below to be connected with local energy providers near you. Or, read on to learn more about Houston’s electricity market.
Compare Cheap Houston Electricity Rates
Here at EcoWatch, we strive for a more sustainable planet and encourage our readers to do their part when feasible. As such, we’ve chosen to highlight some of the best electric companies in Houston that offer 100% renewable energy.
The chart below shows renewable energy plans and prices available throughout the Houston area. Keep in mind that these prices may not be exact, as rates can change daily.
Plan | Term (months) | Rate (¢/kWh) (1,000 kWh plans)* |
MP2 Energy Power Choice 12 ePlan | 12 | 13.9 |
MP2 Energy Power Choice 24 ePlan | 24 | 13.1 |
Green Mountain Energy Pollution Free e-Plus 12 Choice | 12 | 13.9 |
Green Mountain Energy Pollution Free e-Plus 24 Choice | 24 | 13.5 |
Green Mountain Energy Pollution Free e-Plus 36 Choice | 36 | 11.9 |
Gexa Simply Low 12 | 12 | 9.7 |
Gexa Eco Choice 3 | 3 | 10.2 |
Gexa Eco Choice 12 | 12 | 12.4 |
Gexa Energy Saver 12 | 12 | 15.6 |
Gexa Energy Saver 24 | 24 | 14.6 |
Gexa Solar 24 | 24 | 14.6 |
Gexa Solar 36 | 36 | 14.6 |
Rhythm Simply Green 12 | 12 | 13 |
Rhythm Simply Green 24 | 24 | 12.3 |
Rhythm Simply Green 36 | 36 | 11.8 |
TriEagle Green Eagle 12 | 12 | 13.7 |
TriEagle Green Eagle 24 | 24 | 13.2 |
Reliant 100% Solar 12 plan | 12 | 14.5 |
Constellation Energy 12 Green Plan | 12 | 14.5 |
TXU Energy Free Nights & Solar Days 12 | 12 | 17.8 |
*Rates will vary based on your TDU. You’ll see the above rates if your TDU is CenterPoint Energy. These rates include the utility’s current charge of $0.04 cents per kWh. Rates are according to Texas’ Public Utilities Commission and are subject to change.4
On average, a clean energy plan might cost around 1 cent per kWh more than a non-renewable energy plan. If you use 1,000 kWh per month, that will be about a $10-$15 difference.
Constellation Energy
Nationwide Service
Average cost
Pros
- Many years of experience
- Great industry reputation
- Award-winning company
- No.1 producer of carbon-free energy in the U.S.
- Makes charitable contributions
Cons
- Charges contract cancellation fees
- No prepaid or no-deposit plans
Gexa Energy
Statewide Service
Average cost
Pros
- Many years of experience
- Great industry reputation
- Makes charitable contributions
- Low rates
- Wide variety of contract term options
Cons
- Charges contract cancellation fees
- No prepaid or no-deposit plans
- Slightly high number of complaints versus competitors
Green Mountain Energy
Nationwide Service
Average cost
Pros
- Green-e certified plans
- Wide variety of contract term options
- Low number of customer complaints
- Many years of experience
- Makes charitable contributions
Cons
- Charges contract cancellation fees
- No prepaid or no-deposit plans
- No satisfaction guarantee
Reliant Energy
Statewide Service
Average cost
Pros
- Low number of customer complaints
- Makes charitable contributions
- Award-winning company
- Wide variety of plan options
- Many years of experience
Cons
- No satisfaction guarantee
- Charges contract cancellation fees
TXU Energy
Average cost
Pros
- Wide variety of plan options
- Many years of experience
- Great industry reputation
Cons
- Expensive
- Not as many renewable energy options as competitors
- Charges contract cancellation fees
How to Find the Best Electricity Rates in Houston
When searching for the best electricity rates in Houston, keep in mind that rates and the average cost of electricity can vary based on numerous factors. That means you may be given a different electric rate than that of your next-door neighbors. Here are a few things that factor into the cost of electricity in Houston:
Your Energy Usage
The amount of electricity your household consumes may affect the rate you pay per kWh. Most REPs offer tiered plans based on average energy usage. Tiered-rate energy plans are often called “V-shaped plans” because the rates are more expensive for people who use the least and most amounts of energy and are lowest for those in the middle.
For example, in a typical tiered plan, customers who use around 500 kWh or 2,000 kWh per month will pay more than those who use around 1,000 kWh per month. Data from the Electric Reliability Council of Texas (ERCOT) shows the average home in the Houston area uses 1,300 kWh per month.5
Contract Length
The length of a contract will also play a factor in the cost of your electricity. As with most services, the longer you commit to one provider, the better deal you’ll get. We’ll discuss the different types of electricity plans in the next section.
A word of caution: Read the fine print and ask questions before you sign anything. Many contracts come with startup fees as well as charges for breaking a contract. And while some companies may advertise a $10 cancellation fee, the fine print could read that it’s actually $10 per month left on the contract.
Electricity Facts Label
When shopping for an energy provider, always ask for an Electricity Facts Label (EFL). Similar to a nutrition label you see on packaged foods, an EFL will give you all of the information about a company’s electricity prices, contract lengths and terms, sources of generation, and emission levels.6 Here’s an example of what that’ll look like:
If you’re interested in seeing the best energy rates you’re eligible for in Houston, you can start comparing prices and plans here. As a trusted energy information source, EcoWatch is often able to secure discounted rates for our readers.
Types of Electricity Plans Offered in Houston
When choosing an energy provider in Houston, you’ll be presented with a few different types of plans. Here’s an overview of the different options offered by most companies in Houston, as well as their pros and cons, so you can pick the best plan for you.
Fixed-Rate Plans
Just as it sounds, a fixed-rate plan allows you to secure a rate that will stay the same throughout the entire duration of your contract. Note that “fixed rate” does not mean your electric bill will stay exactly the same month over month. Rather, the rate you pay per kilowatt-hour will be fixed. So, your overall bills will still be higher during the months you use more electricity.
Pros of a Fixed-Rate Energy Plan in Houston | Cons of a Fixed-Rate Energy Plan in Houston |
You’ll have a better idea of what to expect when it comes to budgeting | If you cancel early, you could be subject to an early termination fee (ETF) unless you’re moving to a new address outside of the service area |
Your rates remain locked in if energy costs rise | Some fixed-rate plans will turn into variable-rate plans upon contract expiration. Be sure to read the fine print and ask your energy provider specific questions about length and price |
Variable-Rate Plans
If you prefer paying month-to-month instead of being locked into a long-term contract, you may consider a variable-rate electric plan. As implied by the name, variable-rate plan prices are based on variables in the energy market. The price per kWh will increase or decrease depending on supply and demand.
Pros of a Variable-Rate Energy Plan in Houston | Cons of a Variable-Rate Energy Plan in Houston |
If the price of energy drops, there may be some months where variable-rate customers will pay less per kWh than fixed-rate customers. | Variable-rate plans can be especially risky if extreme weather or other factors suddenly — and drastically — increase the price of electricity. |
We saw the biggest negative impact of variable-rate plans during the February 2021 winter storm, when millions were in the dark due to a massive power outage. Texans who kept their lights on paid the price, with at least one customer facing an electric bill over $16,700.7 Texas power companies were reportedly overcharged $16 billion dollars by the electric grid operator.
With variable-rate plans, prices change month to month based on the market rate of electricity. Some months, you’ll pay less than homes with fixed-rate plans, and others, you’ll pay more. You may also see surprisingly high bills during extreme fluctuations.
No-Deposit and Prepaid Energy Plans
Many power plans require an initial deposit to protect REPs from losses should a customer be unable to pay an energy bill. However, certain companies will offer a no-deposit electricity plan option so long as the customer passes a credit check. If you don’t have a high enough credit score for a no-deposit plan, you can still avoid paying a deposit by opting for a prepaid, or “pay-as-you-go” electricity plan.
With a prepaid plan, the customer pays in advance for a set amount of electricity. The good news is that customers can track electricity usage online and can reload the account when it runs low. However, rates are not fixed in a prepaid plan, so it can be harder to plan out expenses.
Pros of a Prepaid Energy Plan in Houston | Cons of a Prepaid Energy Plan in Houston |
The obvious — no deposit. All of the money you pay to the energy provider goes directly toward powering your home. | Your power will be automatically shut off if you hit the threshold of electricity you paid for (this can be avoided by actively monitoring your usage or enrolling in auto-pay to reload your meter if it gets below a certain amount). |
You have total control over how much you spend on your electricity. | You’ll pay for your electricity upfront and will have to remember to top up your meter if not set on auto-pay. |
You don’t have to sign a contract that may come with cancellation fees. | You’ll usually pay a higher rate per kWh compared to other plans. |
Green Energy Plans
Green energy plans are those that supply electricity from renewable energy sources. Those sources will primarily be wind and solar energy in Texas.8
Some REPs may have Green-e Verification or a similar certification to ensure that the electricity is responsibly generated, transmitted and distributed. Non-green energy plans, at least in Texas, rarely meet 25% of their total energy from renewable sources.9 Most green energy REPs will still offer variable- and fixed-rate electricity plans — the main difference is where the energy comes from.
Pros of a Green Energy Plan in Houston | Cons of a Green Energy Plan in Houston |
You can feel good about where your electricity is coming from. | On average, a non-renewable plan might cost around one cent per kWh less than a clean energy plan. |
You can support clean energy without the large upfront investment of solar or wind. | These plans are not offered by all energy companies, so you’ll have more limited options when choosing a provider. |
Business Energy Plans
Not all REPs will provide commercial electricity. If you’re looking for electricity service for your business, you’ll want to look for a provider that offers business energy rates. “Business” energy plans may also be needed for industrial and government buildings, schools, and churches.
Most business energy providers will offer variable or fixed-rate options.
If you want to get more information or you’re ready to pick a plan, you can use this tool or click below to get offers from some of the top energy companies in Houston.
Best Houston Electric Companies
As we mentioned, there are well over 100 energy providers in the Houston area. EcoWatch has chosen to focus on REPs that get their basic power from a clean energy source, like solar or wind power.
Here are a few examples of the best Houston energy companies offering cheap electricity plans and what makes them worthy by our criteria.
Constellation Energy
- Award-winning company; one of the best in the business
- Offers 100% renewable energy options
- Options for customers to go solar via Sunrun with guaranteed prices
- Veteran solar energy supplier
- The No.1 producer of carbon-free energy in the U.S. (producing 10% of all carbon-free energy)
- 20+ years of experience
- A+ Better Business Bureau (BBB) rating10
Gexa Energy
- Houston’s best value energy plan, offering cheaper electric rates relative to most competitors
- Offers 100% renewable options
- Fixed-rate plans
- Wide variety of contract term options
- 20+ years of experience
- A+ BBB accredited business11
Green Mountain Energy
- 100% renewable options
- Best green energy option, offering Green-e certified plans
- Fixed-rate plans
- Variety of contract term options
- 20+ years of experience
- Low complaint rate
- A+ BBB accredited business12
Reliant Energy
- Award-winning company
- One of the most prominent companies on the market
- Offers a 100% renewable energy option, although most of its plans are not green
- Fixed-rate plans
- Wide variety of plan options
- 20+ years of experience13
TXU Energy
- Highly regarded as one of best REPs in the Lone Star State
- Offers plans with 100% solar days and an option to upgrade any plan to be 100% wind-powered
- 20+ years of experience
- A+ BBB accredited business14
FAQ: Houston Energy Plans
At EcoWatch, we frequently receive energy-related questions from readers in Houston. Here are the most common questions we see, along with our answers:
Based on our market research, Gexa Energy offers the cheapest electricity rates through its Gexa Simply Low 12 plan (rates around 10 cents per kWh with a 12-month fixed-rate contract).
Frontier Utilities and 4Change Energy tend to be the biggest competitors to Gexa when it comes to cheap electricity rates in Houston, but Gexa is the only one that offers only 100% renewable energy plans. Other companies, such as Just Energy, will offer free electricity on nights or weekends, which may lower your overall energy bills.15
We’ve found that the best energy providers in Houston include Constellation Energy, Gexa Energy and Green Mountain Energy. However, the provider that’s best for you will depend on your household’s specific energy needs.
Because of deregulation, the best way to lower your electricity bill in Houston is to compare rates from multiple providers and choose the one that’s going to offer you the best deal over time.
You can also work to lower your overall electricity use by making more conscious decisions to turn off lights, better insulate your home or make energy-efficient home upgrades. Follow these tips for more ways to save energy at home.
It’s hard to say which of Houston’s energy plans is best, because what’s best for one customer may not be the best for another. We recommend looking at our top three best companies — Constellation, Gexa and Green Mountain Energy — and exploring their rate options to find the best electricity plan for your household. Or, use this link to get connected to the best energy providers in your area.