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Houston Energy Rates

Compare Houston electricity rates from top energy companies

In 2019, the average Houston, Texas electricity rate was 11.92 cents per kilowatt-hour (¢/kWh).  Currently, the lowest rate available to EnergyBot customers in Houston, Texas is 4.97 cents per kilowatt-hour

Energy facts for Houston, Texas from the U.S. Energy Information Administration:

  • The average Texas commercial electricity rate is 8.19 ¢/kWh (22% lower than the national average). 
  • The average Texas residential electricity rate is 12.21 ¢/kWh (6% lower than the national average).
  • Texas leads the nation in electricity generation from wind. 
  • Texas ranks fifth in the nation in electricity generation from solar. 
Downtown Houston Texas lit up at night

In 2002, the Texas legislature approved energy deregulation – paving the way for a competitive energy market. As a deregulated electricity market, state’s retail energy companies would need to compete - against each other - for the millions of Texas residential and business customers. The goal of a deregulated, or competitive energy market, is to give the power to choose to the consumer – which forced Houston electricity providers to be more efficient and lower costs – and offer improved customer service and lower rates to their customers. Going forward, the home and business customers of energy suppliers would have the ability to switch to a new energy provider (at the end of each contract) to maintain the advantage of the deregulated market.

For small and medium sized businesses to larger corporations, the deregulated market in Texas has flourished in the new era of competition. Today, every home and business can compare energy plans from top energy suppliers and shop for the best rate available – and then make the switch.

In an analysis of the energy data, most businesses can effectively reduce their monthly electricity costs by pro-actively researching providers and switching energy plans every 12 to 24 months.

Houston commercial electricity 

If you are a business in the deregulated energy market of Houston, Texas, you now have the power to choose your electricity supplier and your rate. To compete for your business, energy suppliers are forced to be more efficient, as well as offer customer-centric business energy plans with competitive energy rates.

Even though you have the power to choose, it can still be a daunting task. In each specific zip code, today’s commercial customer will have hundreds of plans from at least 20 different energy suppliers to choose from. And although the intended result of deregulation was to lower prices for small businesses, medium businesses and larger enterprise level businesses, it’s not that simple. In many cases, comparing energy plans is still confusing due to the sheer number of plans available, promotional rates that are not apples-to-apples and the legal fine print that details fees and penalties.

Commercial energy customers can maintain control over the process by reviewing their monthly usage and average monthly electricity bill. A good rule of thumb to follow based on the amount of the monthly bill. 

If your average business electricity bill is under $500 per month, then you can get a very good energy rate for your business through a simple online comparison of energy rates.

If your average commercial electricity bill is over $500 per month, then you will most likely get a more competitive energy rate through the custom energy quote process. The custom process is exactly that – by providing basic business information, energy usage and submitting a recent electricity bill – EnergyBot can leverage partnerships with suppliers to work on your behalf and secure the best energy rate for your business. Although it will take more time to complete, the custom quote process may deliver a lower energy rate that will add up to big savings for your business.

Houston’s historic downtown is a major business hub in Texas

For Houston businesses, researching Houston energy rates and switching to a new electricity plan can be time-consuming and frustrating. EnergyBot is built to make energy simple and help businesses find the best electricity rate quickly and easily. 

Along with saving time, EnergyBot also helps businesses cut energy costs by 15%. As a pure online company, we eliminate the costly overhead fees and sales commissions that are associated with third party energy brokers. The days of paying too much for electricity is over. EnergyBot is committed to giving you a real choice.

Renewable energy plans in Houston

Central Texas wind farms generate more renewable green energy than any other state

Through our trusted partnerships with leading national energy suppliers, EnergyBot can also help businesses switch to a green energy plan and support a more sustainable business practice.

About Houston, Texas

Johnson Space Center in Houston, Texas

Known as the home of the Texas oil boom, Houston is the largest city in the state of Texas with a population of 2.35 million residents. Located near Galveston Bay and the Gulf of Mexico, Houston covers an expansive area of 655 square miles.

With NASA and the Johnson Space Center in Houston, the city is known as Space City. And considering the fact that the first word spoken from the lunar surface in 1969 from astronaut Neil Armstrong was, "Houston, Tranquility Base here. The Eagle has landed” – after the successful moon landing, Houston is cemented in our culture and history.

The Houston metropolitan area is one of the largest and most diverse business regions in the U.S. It’s 11 counties – Austin County, Brazoria County, Chambers County, Fort Bend County, Galveston County, Harris County, Liberty County, Montgomery County, San Jacinto County, Walker County and Waller County – are home to a massive infrastructure ports, international airports and major highway and rail service enable Houston to support multiple industries, from advanced manufacturing to biotech.

Texas Business Profile

The 2.7 million small businesses in the state of Texas employ over 4.74 million people and added nearly 95,000 net new jobs, according to the latest SBA Small Business Profile. The economic growth in Texas has remained strong as the unemployment rate dropped from 4.1% to 3.8% in 2019.

Houston, Texas Business Profile

Founded in 1836, Houston is home to a vibrant economy – with the second largest concentration of Fortune 1000 companies in the country (49) behind only the state of New York (72) as well as serving as home based for over 500 digital technology companies.

The Houston metropolitan area is the in the top 5 of the U.S. with 7 million people living and working in the 11 counties. In the past 10 years, Houston's population grew over 16%, one of the fastest growth rates for a large metro area in the country

Houston is poised to continue its amazing growth – recently being recognized for its economic potential, diverse community and low cost of living.

How to switch electricity plans

In a deregulated energy market like Texas, residential and business customers have the power to compare energy suppliers and plans and then switch at their discretion – based on any existing contract terms, renewal dates and fees.

Step 1: Compare energy providers and energy prices online

This is the easy part and it starts online. Today, businesses have a variety of online websites and tools to search and compare energy providers, plans, and rates. The best way to compare providers is to use a simple website like EnergyBot.com. In less than 5 minutes, you can enter basic information about your business, like your zip code and monthly electricity bill, and then search and compare dozens of top energy suppliers in your area to find the lowest energy rate.

Step 2: Take time to review the energy plan details

When you are comparing electricity plans, it will pay – literally – to take time to review the plan details, contract terms, and legal copy. Energy companies may entice you with a low rate, yet the fine print will reveal that it is a variable rate – that is only applicable when you are in a specific range of kWh usage. Also, review the contract term, cancellation fees, and out clauses before signing up for a new plan.

It’s important to do our research and we have you covered. Check out this article to learn more about the different types of energy plans and rates.

Step 3: Upload your most recent electricity bill

In many cases, the energy supplier, broker or website that you are using to find a new electricity plan will ask you to upload your most recent electricity bill. Although this may feel a bit intrusive, it provides pertinent account information and is important to securing the best energy rate available for your business. Your energy bill has your business information as well as the data that outlines your monthly energy usage.

To add, your new energy supplier will require proof of your energy usage before you can switch and your electricity bill is the easiest way to meet the requirement.

Step 4: Request a custom electricity pricing quote

If you own or manage a larger business with high energy usage (and higher monthly bill), then it may be beneficial to request a custom pricing quote. For larger companies, the process is a bit different. Due to your high energy usage, energy suppliers require a comprehensive review of your energy usage to provide a custom quote on a new plan and rate. At EnergyBot, you can get custom pricing support from one of our energy experts.

Step 5: Confirm the switch to a new energy provider

After authorizing a switch to a new energy provider, you will receive a confirmation email with the plan details and start date. It’s very important to review the plan you authorized and the new start date. The transition to a new supplier will be seamless…you won’t even notice until you get the electricity bill the next month.

Frequently Asked Questions About Houston, Texas Energy

What is ERCOT?

ERCOT is a membership-based nonprofit corporation that is governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature and is tasked with managing the flow of power to 26 million Texas residents, 8 million locations and 90% of the Texas grid. ERCOT members encompass many stakeholders –  including consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers and municipally owned electric utilities.

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

Utilities are the entities in charge of the operation and maintenance of the energy infrastructure, like wires and towers. The local utility in Houston is responsible for transporting electricity from the generators to residential homes and businesses in this specific region.

Energy providers in Houston like TXU, Direct Energy, and Cirro are the competitive energy retailers. Each energy provider buys energy from the wholesale market (the generators) and then re-sells it to consumers (homeowners, renters, and businesses).

In most cases, the consumer, the homeowner, renter, or business, signs a contract with an energy provider for a specific energy plan. The basic energy plan details the rate class, the energy rate per kWh, the contract term length (6, 12, 24, 36 months), and other contract terms like cancellation fee policy.

What is Texas’ Power to Choose (powertochoose.org)?

Power to Choose is the official and unbiased electric choice website. Sponsored and managed by the Public Utility Commission of Texas (PUC), PowerToChoose is a consumer website that enables retail electric providers to list energy plans and rates – for free – thus enabling consumers to easily compare and then choose the best electric plan for their home or business.

Types of Energy Plans offered in Houston

Energy suppliers offer two different types of plans for residential and business customers: a fixed-rate plan or a variable-rate plan.

Each type of plan has its respective pros and cons. As a Texas customer, it’s important to understand the two types of plans before signing up for an electricity plan for your home or business.

Fixed-Rate Electricity Plans

The simple definition of a fixed-rate plan is that you are signing a contract with an energy supplier that offers a fixed-rate – meaning that the rate will remain constant for the term of the contract. Regardless of weather, natural events like tornados, or market volatility, your rate will not change. In most cases, a fixed-rate plan will have a term length of 6, 12, 24, or 36 months.

Variable-Rate Electricity Plans

The simple definition of a variable-rate plan is that you are signing a contract with an energy supplier that offers a variable-rate – meaning that the rate may change on a monthly basis based on market factors. Variable-rate plans offer more flexibility but also present more volatility in pricing which may impact your monthly electricity bill.

It is important to audit your energy usage and then select the right plan – a fixed-rate plan or a variable-rate plan – before signing a contract with an energy supplier.

Electricity Plans and Rates in Houston

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