Compare Houston Electricity Rates (2024 Best Prices)

Compare Houston Electricity Rates (2024 Best Prices)

Here’s a quick overview of Houston electricity rates:

  • Current average rate of retail electricity: 15.88 cents per kWh
  • Average monthly electric bill: $206.44
  • Average monthly energy use: 1,300 kWh
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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 Electricity 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 3.9 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 the Cheapest Houston Electricity Rates

The cheapest Houston electricity plan is the Gexa Eco Choice 3 plan from Gexa Energy, with a per-kWh rate of just 8.9 cents. Most impressive is that this plan uses 100% renewable energy but still maintains the overall most affordable electricity rate in Houston.

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)*

Gexa Energy Gexa Eco Choice 3

3

8.9

Rhythm Energy Simply Choose 3

3

9.1

Rhythm Energy Power to Shift 3

3

9.1

Chariot Energy Chariot Choice 3

3

10.1

Rhythm Energy Simply Choose 4

4

10.7

Rhythm Energy Power to Shift 4

4

10.9

Gexa Energy Gexa Eco Choice 12

12

12.5

Octopus Energy Octo 12 with EV

12

12.6

Octopus Energy Octo 12 with Smart Thermostat Connected

12

12.6

Gexa Energy Gexa Eco Choice 24

24

12.8

CleanSky Energy Embrace Green 36

36

13.2

Rhythm Energy Power to Shift 12

12

13.6

CleanSky Energy Embrace Green 12

12

13.6

CleanSky Energy Embrace Green 24

24

13.7

Chariot Energy Chariot Choice 15

15

13.8

Shell Energy Shell Energy Fixed 100% Renewable Plan 36

36

13.8

PowerNext Fixed Renewable PT

36

13.8

Chariot Energy Chariot Choice 36

36

13.8

PowerNext Fixed Renewable PT

12

14.2

Gexa Energy Gexa Guarantee 12+

12

14.2

*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.

Best Electric Companies in Houston

Badge icon

Constellation Energy

Best National Company

Nationwide Service

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
Badge icon

Gexa Energy

Best Rates

Statewide Service

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
Badge icon

Green Mountain Energy

Best Green Energy Options

Nationwide Service

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
Badge icon

Reliant Energy

Best Plan Variety

Statewide Service

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
Badge icon

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

What’s the Difference Between Utility Companies and Electricity Provider Companies in Houston?

Utility companies are companies that produce electricity, either by running and maintaining solar or wind farms, or by burning fossil fuels to generate electricity. These are similar to what you might envision when you think of a “power plant.” Utility companies generate the power and maintain the delivery systems, including all electric lines, but they don’t deliver electricity to retail customers.

An electricity provider is an intermediary that buys the electricity from the utility companies and then delivers it to retail customers, like homeowners. They handle billing and customer service, but they aren’t responsible for production or maintaining power lines.

There are some benefits to a deregulated electricity market that makes use of both producers and providers. Since multiple providers compete for your business, it generally drives prices down, provided you shop around for the best deal. It also lets you choose a company based on customer service ratings, renewable energy plans and more, rather than being stuck with a single company.

You can choose your provider in Houston, but electricity production companies (utility companies) are assigned to specific areas, so you can’t make any changes there.

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
Fixed Rate vs Market Rate Electricity Rates in Houston by Month
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.

Variable Rate vs Market Rate Electricity Rates in Houston by Month
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.

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:

Electricity Facts Label for Houston Homeowners
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.

How to Switch Electricity Plans in Houston

Switching to a new electricity plan in Houston is simple and should only take you a few minutes. You can use the detailed guide below to help find and choose the best plan for your specific needs.

1. Enter Your Zip Code

First, scroll up to the top of this page and enter your zip code to see available providers and plans in your area.

Switching Houston Electricity Plans Step 1

2. Choose the Type of Service You Need

Next, you’ll be prompted to note which type of service you need: service as a new resident or service if you’re switching providers.

  • Switch: Choose this option if you already live in Houston, already get electricity to your residence and want to shop around for a more affordable plan.
  • New Service: Choose this option if you recently moved to Houston and need electric service for the first time. Some companies have special offers for first-time customers.

Switching Houston Electricity Plans Step 2

3. Choose How You Want to Browse Plans

Next, you’ll have to decide how you want to look at and choose a plan. You have three options:

  • EnergyBot Advisor Plus+: Choose this option if you want the easiest and most seamless experience. A representative will gather some information, choose the plan that will benefit you the most and then file the paperwork for you to take all of the hard work out of your hands.
  • EnergyBot Advisor: Choose this option if you want to have some say in what company you choose. You’ll enter some information and then see a list of all plans available to you, compared based on your exact electricity consumption rate and home.
  • Standard View: Choose this option if you just want to see data for all plans available to you and are comfortable doing some math based on your energy consumption and comparing the plans yourself.

Switching Houston Electricity Plans Step 3

4. Confirm Your Plan Choice

Once a plan is chosen for you or you’ve picked one based on your preferences, you can click on Select Plan to the right.

Switching Houston Electricity Plans Step 4

5. Go to the Supplier’s Website

Finally, you can click on Go to the Supplier’s Website to be taken directly to the plan option you’ve selected. You’ll also get information on what to look for and the process to follow once you’re there.

Switching Houston Electricity Plans Step 5

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:

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Article author
Dan Simms is an experienced writer with a passion for renewable energy. As a solar and EV advocate, much of his work has focused on the potential of solar power and deregulated energy, but he also writes on related topics, like real estate and economics. In his free time — when he's not checking his own home's solar production — he enjoys outdoor activities like hiking, mountain biking, skiing and rock climbing.
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Expert reviewer
Melissa is an avid writer, scuba diver, backpacker and all-around outdoor enthusiast. She graduated from the University of Florida with degrees in journalism and sustainability studies. Before joining EcoWatch, Melissa worked as the managing editor of Scuba Diving magazine and the communications manager of The Ocean Agency, a nonprofit that’s featured in the Emmy award-winning documentary Chasing Coral.