Texas Business Electricity Rates

Business Electricity Rates in Texas

The average commercial electricity rate in Texas is $0.0753 /kWh. This rate does not include transmission and delivery fees and is sometimes called the "energy charge".

Below are Texas's lowest available business electricity rates. *Note: Your business may qualify for better rates depending on usage and other factors. To unlock your lowest possible rate and see accurate bill forecasts, use our "link your data" tool now.

Provider	Term Length	Rate
NRG Energy, Inc. - 3 month energy plan	3 months	5.53¢
AP Gas & Electric - 1 month energy plan	1 month	5.65¢
Gexa Energy - 15 month energy plan	15 months	6.32¢
Chariot Energy - 12 month energy plan	12 months	6.78¢
Engie Energy - 12 month energy plan	12 months	7.03¢
Atlantic Energy Texas - 12 month energy plan	12 months	7.04¢
Freepoint Energy Solutions - 12 month energy plan	12 months	8.28¢

Source: EnergyBot (updated daily)

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Texas Commercial Electricity Rates

These rates apply to all utilities in Texas, such as AEP Texas, CenterPoint, Oncor, and Texas New Mexico Power. Rates are based on an average small-business usage of 2,500 kWh per month for a 12-month plan. Rates vary depending on your energy usage. If you’re interested in residential rates, visit this page to compare home plans.

Business Electricity Forecast – Spring 2026

Texas electricity rates are currently at historically low levels due to a mild winter and a cool spring. This presents a strong window to secure a long-term plan before demand rises and prices adjust.

We recommend choosing a longer-term fixed-rate plan now while the market is favorable. This provides predictable costs and protection from seasonal spikes. With EnergyBot, you can compare options and select a plan that fits your usage and budget, locking in stable rates before prices rise.

How to Get the Best Business Electricity Rates

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. Comparing energy prices across providers is crucial to securing the most favorable rates, especially given seasonal demand and market conditions. Monitoring market fluctuations is also essential, as it allows businesses to secure the lowest-priced plans and quickly adapt to changing energy prices. Start using EnergyBot today to compare plans and take control of your energy costs.

Most small business consumers use less energy than larger businesses, typically 240,000 kWh or less per year, making the enrollment process relatively straightforward.

Larger commercial electric plans are often more complex.

How Commercial Electricity Rates in Texas Work

In Texas, businesses can choose their electricity provider and select from a variety of plans and rates tailored to their needs. Options differ by business size and usage requirements.

The deregulated Texas energy market lets businesses compare rates and plans from multiple providers. This competitive landscape helps businesses find cost-effective options and optimize energy usage. Working with an energy broker can further help compare, negotiate, and customize plans for savings and hassle-free management.

• Business electricity rates depend on several variables, including usage, load factor, location, and others.
• EnergyBot allows you to link your business electricity usage history to view the best real-time pricing and gather quotes from dozens of providers.
• For assistance, the Texas-based support team is available.

Types of Business Energy Plans

Texas businesses can choose from a variety of electricity plans tailored to meet diverse energy needs, helping them manage operational costs and sustainability targets. Selecting the right plan is important, as it can impact both small and large businesses through tailored solutions and strategy.

Small business consumers will most likely be best served by choosing 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 term, which usually spans 6 months to 3 years. Fixed-rate energy plans provide stability and predictability in energy costs, protecting businesses from potential price fluctuations in the energy market.

This is generally the optimal choice for most Texas businesses, especially small businesses.

Variable-Rate Plans

A variable-rate plan has rates that can change monthly, depending on current electricity market prices. While this type of plan can result in savings during periods of low energy costs, it can also lead to higher charges during peak demand. This plan is best for businesses that can manage potential cost fluctuations.

Time-of-Use (TOU) Plans

These plans offer variable pricing by time of day, with discounted rates during off-peak hours and higher rates during peak demand. They encourage businesses to shift usage to off-peak times, improving efficiency and reducing costs.

Demand Response Programs

These innovative plans offer businesses financial incentives to reduce power consumption during peak electricity demand, helping maintain grid reliability. The Electric Reliability Council of Texas (ERCOT) plays a crucial role in managing the electricity grid and ensuring reliable service, especially during extreme weather conditions. 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, energy may be sourced entirely or partially from renewables.

Solar and wind energy are especially important in supporting a reliable, resilient, and environmentally friendly energy system in Texas. Wind energy, in particular, is a vital component of Texas's diverse renewable energy portfolio and helps stabilize the energy grid.

While transitioning towards renewable alternatives, it is important to note that fossil fuels still play a significant role in the current energy landscape.

Indexed Rate Plans:

These plans link the per-kWh rate to a specific market index, such as natural gas prices or the Public Utility Commission of Texas (PUCT) electricity index. This approach best suits businesses prepared to accept market risk for possible savings.

Business Electricity Providers

In Texas, you get to choose your electricity provider. These providers, called Retail Electric Providers (REPs), are licensed and regulated by the PUC of Texas. Providers buy power from generation companies and sell it to customers like your business. They are separate from your utility, like Oncor, CenterPoint, Texas New Mexico Power, or AEP. There are dozens of licensed electricity providers in Texas.

Each provider delivers different rates, services, and contract terms. Some prioritize low-cost plans, while others focus on renewable energy or flexible billing. Choose the option that best serves your business.

Take the next step—use EnergyBot to compare business energy providers with transparent pricing, reliable customer service, and flexible options tailored to your energy goals. Make your energy decision today.

Switch Business Electricity Suppliers

Switching your electricity provider doesn’t have to be a headache. We make it easy to compare small-business plans. In Texas, the deregulated market lets you switch electricity providers effortlessly, so you can find a more cost-effective option without service interruptions. Get started today and discover the best electricity plan for your business.

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.

Start shopping now or call us at (888) 743-1870 for personalized help!

Choosing the Right Plan

Selecting the right electricity plan is crucial for businesses to manage their energy costs effectively. Commercial electricity rates in Texas vary depending on factors such as usage, location, and market conditions. Businesses should consider their energy consumption patterns, peak demand times, and budget when choosing a plan. Fixed-rate, variable-rate, and renewable energy plans are among the options available. It is essential to carefully review the Electricity Facts Label (EFL) and understand the terms and conditions of each plan before making a decision. By choosing the right plan, businesses can optimize their energy usage, reduce costs, and minimize their carbon footprint. This strategic approach to energy management can lead to significant cost savings and enhanced operational efficiency.

Factors Impacting Your 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, your electric rate per kWh may be beyond your control.

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

Type of Business

Business energy plans and rates may vary by business type 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.

Residential customers face distinct contract terms and legal obligations compared to businesses, including the possibility of long-term agreements and requirements to meet specific energy regulations.

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-sized business electricity usage 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 electricity rates and find the best 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 business type and the time of day it is consumed. To determine your rate, suppliers rely on a demand curve. If you use a lot of energy at odd times, it can lead to a higher rate. For example, churches and religious organizations that generally use much more energy on weekends often pay more for energy than other similar businesses with similar usage levels.

Contract Length

By signing up for a longer contract with a supplier (2-3 years), you should be able to secure a lower energy rate. With longer terms, suppliers can better forecast usage. 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

Many variables 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

Power plants play a crucial role in maintaining capacity during peak demand periods, which is essential for managing electricity rates, especially with the rising energy consumption in Texas.

FAQs About Commercial Electric Plans

What are the average commercial electric rates in Texas?

As of today, the average commercial rate in Texas is $0.0753/kWh, but rates can vary depending on your business’s specific needs and usage.

What is a retail electric provider (REP)?

A retail electric provider (REP) is a company that supplies electricity to consumers in Texas. They purchase electricity from generators and resell it to customers, offering various plans and rates.

Why are commercial rates different than residential rates?

Commercial and residential electricity rates are built differently because the way energy is used is different.

Businesses tend to use more electricity and use it more consistently throughout the day. That can make them less risky for providers, but they also create higher demand at certain times, which affects pricing. Commercial plans often factor in things like total usage, peak demand, and load patterns.

Residential plans are simpler. They’re designed for lower, less predictable usage and are usually priced with fixed rates or basic tiers.

For your business, this means rates are more customized. The good news is you can use that to your advantage by finding a plan that matches how you actually use energy. With EnergyBot, you can compare options across more providers and see what fits your usage, not just a generic rate.