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

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Home Electricity Rates by State Texas Houston

Written by Kristina Zagame

Reviewed by Melissa Smith

Updated as of March 08, 2023

Why You Can Trust EcoWatch

Our renewable energy experts have conducted hours of research and collected dozens of data points to determine the best energy rates in Houston. We’ve also unbiasedly ranked and reviewed numerous energy companies to empower you to make the right choice for your home.

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.

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

Best National Company

EcoWatch rating

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

Get Estimate Click to get a free quote

Gexa Energy

Best Rates

EcoWatch rating

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

Get Estimate Click to get a free quote

Green Mountain Energy

Best Green Energy Options

EcoWatch rating

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

Get Estimate Click to get a free quote

Reliant Energy

Best Plan Variety

EcoWatch rating

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

Get Estimate Click to get a free quote

TXU Energy

Energy Industry Veteran

EcoWatch rating

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

Get Estimate Click to get a free quote

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.

Fixed rate energy plans in Texas have fixed prices width=“441” height= — ^{With a fixed-rate plan, you’ll pay the same amount every month for each kilowatt-hour of energy you use. This ensures your rates will stay the same even when the market rate of electricity fluctuates. Some months, you’ll pay less than the market rate, and others, you’ll pay more.}

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.