Best Electricity Companies in Texas (2025)

How To Pick an Electricity Provider in Texas

We recommend leveraging an energy comparison website, such as Home Energy Club, to compare renewable energy providers and enroll in a green energy plan. You can filter the plan selection to showcase only providers and plans with 100% renewable energy.

As we know from our July 2024 survey of more than 1,000 Texans, price is the number one concern for Texans such as yourself — even when shopping for green energy. Don’t worry: most energy providers now offer very competitive rates on renewable energy plans. Many of our top picks for green energy companies also offer straightforward green energy plans for more predictable monthly energy costs.

While price and predictable billing are major concerns, customer service is also a factor. That’s why no light company with less than a 4.1 in customer satisfaction made it into our top 10 light companies for renewable energy.

Reading the EFL

Don’t forget about the electricity facts label (EFL). This state-mandated document provides critical plan information, including the energy charge, applicable discounts and the total renewable energy content. You can double-check the EFL to ensure that the plan’s best rate aligns with your electricity usage levels while also verifying that it has the requisite renewable energy content that you’re after.

Know Your Usage

When shopping for green energy plans, take the time to understand your historic energy usage. We recommend reviewing past energy bills for an entire year to learn how many kWh you use per month, regardless of the changing demand caused by seasonality. For example, many homes use large amounts of electricity in summer, while their usage tends to drop in spring and fall. Your energy usage may climb in winter if your home uses an electric heating system. Knowing how much energy you use can help you filter plans based on usage.

Be sure to shop for plans in your specific ZIP code. Plan offerings in the Dallas metro area may differ from those in the greater Houston metroplex.

Types of Renewable Energy Plans in Texas

You’ll find many renewable energy plan types in Texas, including 100% renewable energy plans, although the state average is currently 33%.

Some energy companies also offer green energy plans from specific sources, such as wind power or solar power. That means you can use solar energy to power your home without investing in solar panels.

Some energy plans are available with partial renewable energy, meaning the company gets the energy from clean and traditional energy sources.

Most renewable energy plans will have fixed rates. Need a month-to-month option? You may have to forego your sustainable energy goals until you can enroll in a longer-term, fixed-rate offering. Variable-rate plans rarely feature much — if any — green energy content.

Solar Buyback Plans

Another great option for homeowners who have already invested in their own solar system is a solar buyback plan, which many providers now offer. This plan type typically promises 100% renewable energy when using the grid. Meanwhile, if your solar system generates excess energy, the provider will buy that energy back from you at a predetermined rate per kWh.

Community Solar Plans

Some Texans can benefit from community solar programs. These programs allow multiple people to leverage the electricity of an off-site solar array. You can typically participate in a community solar program through a subscription, paying a monthly fee and getting awarded an account credit based on how much energy the solar array generates. Community solar plans are a great way to leverage a renewable energy source without putting down a large payment on your own solar system.

Texas Renewable Energy Regulations and Incentives

Texas has become the largest producer of green energy in the United States, largely due to its massive wind power farms. The Lone Star State is also a major solar power producer, with both residential solar systems and commercial solar farms growing in popularity.

While there are few tax incentives for enrolling in green energy, the simple dollars and cents of it all is this: grid parity means that most renewable energy plans are now as cheap as — if not cheaper than — traditionally-sourced fossil fuel energy plans.

In 1999, Texas adopted the Renewable Portfolio Standard, setting a goal to reach 10,000 megawatts (MW) of renewable energy by 2025. Texas met this goal in 2010, 15 years ahead of its projected goal.

The Lone Star State also created the Texas Emerging Technology Fund (TETF), which has invested heavily in renewable energy technologies, according to the Office of the Texas Governor.

One part of the boom in renewable energy is the use of Renewable Energy Certificates (RECs). These are certificates that some providers buy on your behalf. These certificates assure the creation of an equivalent amount of energy from a renewable energy source — such as wind power, solar power or hydropower — as the energy consumed by your household.

Texas doesn’t offer a state tax incentive for installing solar panels on your home. However, the federal government does provide a tax incentive that may help you save money on your home solar system. Many local utility companies also offer incentive programs to help Texans save on their solar system.

Another perk is that many top energy providers now offer solar buyback plans. When enrolled in one of these plans, your electric company will buy any excess power your system generates, often at a predetermined cost per kWh. Some providers offer more competitive buyback rates than others, so read the plan’s electricity facts label (EFL) before enrolling. Based on our review, TXU’s Solar Buyback Match 36 is one of the top options because the rate you pay per kWh is the same rate the company will pay you for any kWh of energy your solar panels generate.

Switching to a Sustainable Energy Provider

Switching to a sustainable energy provider is as easy as going with a traditional energy provider. Many Texas electric companies now offer at least one renewable energy plan. 

When switching, we recommend starting the process at least 30 days before your current energy plan expires to ensure you have plenty of time to choose the right plan for your needs. You’ll also be able to schedule your enrollment so that your new plan starts before your old plan ends, avoiding an interruption in your power service.

Most renewable energy plans in Texas don’t feature any additional fees or costs compared to traditional plans. That said, some providers levy an extra charge for green energy, often in the form of a flat monthly fee ranging from $4.95 to $9.95. In most cases, these fees won’t be avoidable, but it’s good to be aware of them as a part of your total monthly energy costs.

Money-Saving Tips for Green Energy Consumers

One of the biggest tactics is also one of the greenest: be more energy efficient.

We spoke with Bruce Stewart, president and chief executive officer of Perch Energy to get his thoughts on saving money while staying green. “Energy vampires” are at the top of his list of things to watch out for.

“‘Energy vampires’ are appliances that are likely to draw power even when not in use by going into a “standby” mode rather than completely powering down,” Bruce said. “Televisions, DVD players, microwaves, video game consoles, and instant coffee are all examples of commonly used ‘energy vampires.’”

One of the most underestimated ways to save? Investing in a smart thermostat. These handy devices represent a fairly small upfront investment (compared to, say, a new air conditioning unit) and can reduce your total usage by a significant amount. According to the U.S. Department of Energy (DOE) you can save as much as 10% on your annual heating and cooling costs by simply adjusting your thermostat a few degrees for eight hours a day.

“On average, U.S. households spend the most money on heating and cooling every month. Smart thermostats allow for optimized heating and cooling schedules, which allows you to heat or cool your home for less money,” Bruce said.

Integrating your residence with other smart home devices, such as smart plugs, smart power strips and smart light bulbs, may help you actively monitor and reduce your total energy consumption.

Many green energy plans are also time-of-use plans, meaning you can get cheap — or free — energy during certain periods. These plans typically offer discounted rates during off-peak periods, such as nights or weekends. Meanwhile, these plans often charge significantly higher rates during peak demand periods, such as during the day. During off-peak hours, you may reduce your total energy costs by strategically using high-energy consumption devices or appliances, such as the washer and dryer, dishwasher, or air conditioning unit.

The Future of Sustainable Energy in Texas

Texas has invested heavily in renewable energy, becoming the U.S. leader in green energy through wind and solar power production. Projections indicate that Texas will continue to pursue both renewable energy infrastructure and fossil fuel energy supply.

While Texas already uses nuclear power for its grid — nuclear reactors power 10% of electricity in the Lone Star State— advances in nuclear power technology may mean increased reliance on this surprisingly clean and potent power source. Texas has two nuclear power plants, and the state is building a third in the coming years, according to the Texas comptroller.

According to the U.S. Energy Information Administration (EIA), Texas may see further investment in wind power and solar energy. EIA projections indicate that wind and solar power combined may reach a production level of over 100 gigawatts (GW), more than double the current capacity of these renewable energy sources.

While we can’t predict the future, one clear lesson from the past 20-plus years is that demand influences the market. The more customers seek out clean energy sources, the more Texas and its energy companies will invest in renewable energy.

Our Methodology for Rating the Best Green Energy Providers

We at the EcoWatch Reviews team interview customers, run focus groups, and speak with deregulated energy experts and company representatives. To gather first-hand data, we also surveyed more than 1,000 Texans who have purchased deregulated energy plans. The result of over 100 hours of study shapes our methodology for reviewing electricity companies based on the following categories:

• Sustainability score (25%): We assess a sustainability score for dozens of providers based on the variety of renewable energy or green energy options the companies offer. Providers who offer only 100% renewable energy plans will score the highest, while those who offer no 100% renewable energy plans will score the lowest. Companies can earn additional points for solar buyback plans and electric vehicle (EV) charging plans.
• Cost and bill predictability (25%): We base our cost ratings on a provider’s effective rate across all usage levels. This helps you identify the lowest effective rate — not just the cheapest advertised cost. Providers with lower rates score well; those who charge more earn fewer points. We rate bill predictability by determining rate variance at all usage levels. More variance means fewer points and lower variance earns more points.
• Plan features and options (25%): More options means more chances for you to find the right plan for your needs. Providers that deliver a range of plan types, from bill credit plans to savings plans and time-of-use plans, earn more points in our review. Providers with fewer options will score lower.
• Customer satisfaction (25%): We rate a provider’s customer satisfaction based on firsthand experience from customer surveys, as well as third-party review websites, such as the Better Business Bureau (BBB) and the Public Utility Commission of Texas (PUCT). Our team also goes through the online buying experience to assess the overall quality of the customer experience.

To learn more about how we rate and review retail energy providers, read our full deregulated energy methodology.