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What You Ne​​​​ed to Know About Texas Energy Rates

Energy
What You Ne​​​​ed to Know About Texas Energy Rates
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Photo by Gene Jeter on Unsplash

The majority of all Texas residents live in a deregulated energy market. This means every day, people have the freedom to switch to a different provider in their service area to save money. Competition helps keep prices down, and Texas energy rates are below the national average.


  • The average Texas residential electricity bill is 13% lower than the national average.
  • The average Texas commercial electricity bill is 4% lower than the national average.
  • Texas leads the nation in wind and ranks fifth in the nation for solar electricity generation.
  • Texas legislators, however, are actively campaigning against renewable energy solutions.
  • Consumers in Texas can use their power of choice to demand smarter energy solutions.
  • In this article we'll talk about energy options in your service area and discuss the pros and cons of energy deregulation.

But as we have discussed at EcoWatch, deregulation and a race to the bottom of prices also creates risk. Infrastructure falls into disrepair and when the grid fails, customers and legislators point fingers.

This article is designed to talk about the best energy companies in Texas, show how rates vary across the state, and give you some clarity on how Texas energy works. If you searched for other websites for info about "Texas energy" you probably encountered plenty of properties whose sole aim is to sell your information to an energy company. This is not one of those pages. This is meat to be informative. Our goal is to paint a picture of the landscape and talk in-depth about the green energy plans available in Texas.

Why Trust EcoWatch to Talk About Energy

An energy plan is something you have to have. Lights aren't optional for most people. For more than a decade we have written about the importance of renewables. Lately, through both legislation and media attacks, renewables have come under fire. We want to bring energy choice to the forefront, and center the conversation around renewables.

  • Independent journalists. Our team of journalists covers renewable energy, solar power, and electricity rates to help consumers understand the energy landscape.
  • Local perspective. We regularly source customer opinions, installation experts for quotes, and state-by-state data to better understand the energy landscape.
  • Simple education process. Like all our product-focused content, our mission is to help people buy things they were already going to buy in a way that helps the planet.

What is "energy deregulation" in Texas?

In most states, consumers get their electricity from a local utility company. The Texas energy market is different. In Texas the market is deregulated, meaning people and businesses have the power to shop a marketplace of electricity providers.

Renewable and "green" electricity in Texas

Texas leads the nation in wind energy generation. It's also a top five states for solar power. This means, despite being closely associated with oil, Texas consumers can pick from green energy plans. The hard part is finding specifics on what makes a plan "green."

To find the specifics of your Texas electricity plan, you have to look at your Electricity Facts Label. If your local Texas electricity provider is unclear about their renewable energy sources, try looking at the green energy plans from Rhythm, Gexa Energy, Chariot Energy, and Green Mountain Energy.

Finding the right energy plan in a deregulated market is hard. You have to research each electric provider, their energy rates, and then pass a credit check. The most important things to consider are (1) am I lowering my monthly bill, and (2) am I moving my home toward a more renewable source of power.

Types of electric plans in Texas

Fixed-rate plans

You pay the same rate every month, regardless of season or changes in the energy market. A fixed-rate electricity plans may require a contract with an annual commitment. An early termination fee can be charged if you leave the contract early. This plan may be right for you if you don't plan to move for a while.

Variable-rate plans

Variable-rate plans change based on the energy market. If demand goes up, so do your prices. We saw the consequences of variable-rate plans in the recent Texas energy crisis. When demand shot up, so did prices for energy customers.

Green energy plans

A green energy plan will rely on wind, solar, and other renewable resources. This is the plan for you if you want to offset 100 percent of your home or office emissions

Prepaid plans

Your credit score has an impact on how much you pay—as it's supposed to be a predictor of how likely you are to pay your bills. Prepaid energy plans allow people with poor credit to acquire power on a prepaid basis.

Texas electricity rates chart

Texas deregulated its energy market in 2002. Since then, consumers have been able to shop for the best rate in their area. It has also brought about a steady increase in competition since the marketplace opened. This means more choices and more for consumers to learn about the process of switching providers.


Source: eia.gov


Best Green Energy Plans in Texas

Here's a chart outlining some of the 100% renewable energy plans available in Texas. We're currently sourcing customer reviews for each company plan and will update this page regularly with new information.

PlanTerm (months)Rate (¢/kWh)
Gexa Saver Deluxe 12
126.9
Gexa Saver Supreme 12
127.3
Gexa Saver 12
127.8
Gexa Saver Save Select 12
129.0
Gexa Saver Value 12
1212.1
Gexa Saver Freedom 12
1212.2
Gexa Saver Freedom 36
3612.2
Gexa Saver Premium 12
1213.5
Gexa Saver Premium 24
2413.5
Gexa Superb Saver 12
1214.8
Green Mountain Pollution Free e-Plus 121211.1
Green Mountain Pollution Free e-Plus 24
2411.3
Lone Star Green 121211.9
Lone Star Green 242411.6
Lone Star Green 363611.2
Rhythm Texas Breeze 121211.3
Rhythm Texas Breeze 24
2410.6
Rhythm Texas Breeze 36
3610.2

Energy shopping checklist

  • Download the Electricity Facts Label before signing any contract to be sure you understand the price you're paying for power; the percent of your power coming from renewable sources; and any fees (like early termination fees) attached to moving or changing your plan.

Texas Electric Companies FAQs

What if I own a business in Texas?

Texas commercial energy rates were the third-lowest in the nation in 2020. Texans who own companies can shop the same electricity market for their best electricity plan. Pricing info is available with each provider. Cheap electricity rates are also available for companies who work off-hours, and may include some free nights.

Is there a cheap energy rate in my area?

The U.S. Energy Information Administration (EIA) tracks average retail electric rates in Texas. The season, your energy usage, and your provider may impact your rate.

When you use the power can also effect your rate. Customers who use power at an off-peak time can get a lower rate.

What is the difference between a Utility and an Energy Provider?

Utilities are in charge of the operation and maintenance of the energy grid. Utilities are focused on the hardware and infrastructure that runs the grid. Texas utilities include Oncor and Centerpoint Energy.

How do I switch energy plans in Texas?

All a consumer has to do is (1) compare Texas electric providers, (2) switch your electric provider using an online service or form, and (3) verify your lower rate and green energy plan details using the Electricity Facts Label before completing the necessary paperwork.

What is Power to Choose Texas?

Power to Choose is the website managed by the Public Utility Commission of Texas (PUC). It lists energy plans for consumers to compare. It does not list commercial electricity rates.

How do I find the best Texas energy plan?

Most of the searchable energy rates are attached to a zip code, so you'll need to find the best rate for your area. A Texas energy plan can vary dramatically—so the most important thing is, again, the Energy Facts Label.

You have the power, as a Texan, to push your state toward more renewable energy consumption by switching your home to a green energy plan.

How much can I lower my electric bill?

Find the right plan for your home and lifestyle is key to controlling your energy costs. Electricity companies are competing for customers, which is an advantage for the homeowners.

Deregulation also means there are power outages related to mismanagement and lack of oversight. Every time you look to lower your electric bill, think of the quality of electricity company you are partnering with. How will they impact your wallet, your power supply, and the planet?

What is the best energy provider in Texas?

The top providers in Texas are TXU Energy, Reliant Energy, Direct Energy, and TriEagle Energy.

Electricity companies focused on renewable energy sources and green energy plans include Gexa Energy, Chariot Energy, Green Mountain Energy, and Rhythm.

Gexa Energy is also one of the cheapest electricity providers in the marketplace. They offer a number of affordable electricity plans that are all 100% green.

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