Texas Business Electricity Rates and Plans

Get the best commercial electricity rate for your business.

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Business Electricity Rates

Business Electricity Rates

These are the current business electricity rates in Texas. It's important to note that these rates are for all utilities in Texas and are based on an average small business electricity usage of 2,500 kWh per month. Rates for your business's usage and location may vary.

Lowest electric rates in Texas today:

Term
Average
Lowest
Trend
6 mo
8.53
7.17¢
Up
12 mo
9.24
7.88¢
Flat
24 mo
8.96
7.63¢
Flat
36 mo
8.94
7.51¢
Flat

Average Business and Commercial Electricity Rates in Texas

Last updated June 2024

  • The average Texas commercial electricity rate is 8.78 ¢/kWh (31% lower than the national average).
  • The average Texas residential electricity rate is 14.92 ¢/kWh (10% lower than the national average).

Source: U.S. Energy Information Administration (EIA) June 2024

We track the average commercial electricity rates year over year. This chart shows the average business electricity rates over time. It's important to note that this is based on a usage total of about 2,500 kWh per month and this chart accounts for all utilities and electricity providers.

Your business may be subject to different rates depending on many different factors.

Switch Business Electricity Suppliers

Switching your electricity provider doesn't have to be a headache. We make comparing plans for your small business easy.

Our system will pull your historical energy usage and match you with electricity providers that offer the best plans for you. You can switch 100% online or if you prefer our energy procurement team can help guide you along the way.

You can get started shopping here or contact us over the phone at  (888) 743-1870.

How to Get the Best Business Electricity Rates in TX

Most small businesses can find the best rates online using EnergyBot to pull their historical usage data to pair them with the best electricity plans.

Since most small business consumers use less energy than larger businesses, let's say 240,000 kWh or less per year the enrollment process is relatively straightforward.

Larger commercial electricity deals can be a bit more complicated.

Types of Business Energy Plans

Businesses in Texas can choose from a range of electricity plan types tailored to meet small businesses' various energy requirements, thereby empowering them to manage their operational costs and sustainability goals.

Small business consumers will most likely want the first type of plan, a fixed-rate plan.

Fixed-Rate Plans

These are the most common and offer a locked-in price per kilowatt-hour (kWh) for the entire contract and term length, which usually spans from 6 months to 3 years. Such plans provide stability and predictability in energy costs, protecting businesses from potential price fluctuations in the energy market.

This is usually the best option for most Texas businesses, especially small businesses.

Variable-Rate Plans

In contrast, these plans' rates can change monthly, depending on the current electricity market prices. While they can lead to savings during periods of low energy costs, they can also result in higher charges during peak demand times. This electricity plan type suits businesses that can manage potential cost fluctuations.

Time-of-Use (TOU) Plans

These plans vary pricing based on the time of day, with lower rates during off-peak hours and higher rates during peak demand times. They incentivize businesses to shift their energy usage to off-peak periods, promoting energy efficiency and cost savings.

Demand Response Programs

These innovative plans offer businesses financial incentives to reduce their power consumption during times of peak electricity demand, helping to maintain grid reliability. Participation can lead to substantial savings and a more sustainable energy footprint.

Green Energy Plans

These are an excellent choice for environmentally conscious businesses. They supply power generated from renewable sources, like wind or solar. Depending on the specific plan, a portion or all of the energy may be sourced from renewables.

Indexed Rate Plans:

These plans tie the per kWh rate to a specific market index, such as the price of natural gas or the Public Utility Commission of Texas's (PUCT) electricity price index. This plan is best suited for businesses willing to take a risk in exchange for potentially lower costs.

Why Is My Commercial Electric Bill So High?

Understanding your business energy bill

Your business energy bill can be a big blow to your bottom line. While you can try to reduce your usage and become more energy efficient, sometimes your electric rate per kWh is out of your hands.

For businesses, you have additional factors that may affect your energy rates, including:

Type of Business

Business energy rates may vary by the type of business or industry. Energy supplies rely on complex models to mitigate their overall risk (by customer) and will want to know what type of business you operate.

Business Size

Generally speaking, larger corporations have more buying power than the average small business since they use much more energy. Here are some examples of different size business electricity usages categories:

  • Small business (Coffee shop, Retail, Professional office) - 2,500 kWh/month
  • Medium Business (Restaurant, Gas Station, Small Manufacturing) - 20,000 kWh/month

This makes it even more important for small businesses to research rates and find the best electricity provider for their usage. We make it easy for your small business to pull its electricity usage history online.

Via our one-of-a-kind technology and partnerships, you can use your energy habits to find the best electricity rate in about 5 minutes.

Usage

Business rates for energy usage vary by the type of business and the time of day that the energy is consumed.  To determine your rate, suppliers rely on a demand curve. If you use a lot of energy at odd times it can cause you to have a higher rate. For example, churches and religious organizations that are generally using a lot more energy on a weekend often pay for more energy than other similar businesses with similar usage amounts.

Contract Length

By signing up for a longer contract with a supplier (2 -3 years), you should be able to secure a lower rate. With longer terms, suppliers are able to forecast usage better. This allows them to purchase energy futures to balance supply and demand. Providers will often pass those savings on to you.

Market Factors on Your Business Electricity Rate

There are many variables that affect rates. In most cases, you have no control over these. The most common are:

  • Weather
  • Market Conditions
  • Generation efficiency
  • Peak and off-peak load
  • Utility charges and tariffs
  • Regulations

Energy Deregulation in Texas

A majority of Texas business consumers are in deregulated energy markets. This means they have the ability to shop for business electricity providers and compare rates. Many entities call this "electric choice."

Electricity providers in Texas compete against each other to offer the best service and lowest electricity pricing.

Major Texas Cities with Energy Deregulation

In most cases, if your business is in one of these cities you have the ability to shop for the best plan for your business.

You can learn more about switching electricity plans and comparing rates in Texas here.

See today’s electricity rates for cities in Texas