At Choose Energy, our reporters seek out information that puts you in control of your energy. Our partners do not direct our editorial content, though we may reference their products in our posts. Read about how we make money to learn more.
Residential and commercial customers in deregulated areas have the power to choose their energy providers. This creates more competition between providers, resulting in cheaper electricity rates. With the free Choose Energy marketplace, you can compare available energy rates in your area quickly and easily to find the plan that works best for you.
Click on a section to skip directly to it:
Across the country, many states have deregulated energy markets. Electricity providers compete for your business by offering cheaper energy rates and promotions.
Deregulation in Texas, for example, has resulted in lower rates than the national average across residential and commercial markets. According to the Energy Information Administration (EIA):
These are the results for just one state, but energy consumers across the country can profit from deregulation with lower prices. Currently, seventeen states and the District of Columbia can shop for energy plans and rates in deregulated markets.
If you are shopping for a new electricity plan or a lower electric rate, Choose Energy can make the process easy. With our independent, unaffiliated marketplace, you can shop and compare energy supplier rates in your area at no cost. Find your state on this page, or enter your ZIP code to get started.
Electricity rates vary due to numerous factors, including location, seasonality, the weather, and energy demand in your area. Energy prices are often higher in the summer or winter, when temperatures are extreme and electricity demand is higher. You could secure a lower electricity rate if you shop at an off-peak time of year, like the spring or fall.
The average price for a kWh of electricity in the U.S. is 14.96 cents. As of December 2022, Nebraska and North Dakota have the lowest residential electric rates at 9.84 and 9.62 cents per kWh. By contrast, Hawaii has the highest electricity rate, averaging 44.78 cents per kWh.
Depending on where you live, you may be able to secure a lower rate with the Choose Energy marketplace. Compare and shop among the best providers in your area in minutes. To begin, enter your ZIP code, and we will show you a list of all the available electricity rates near you. You can then filter the results to compare your options easily.
The Choose Energy marketplace is free to use and allows you to compare low-cost energy rate plans and top providers in your area, so you can find an energy plan that fits your needs. Filter by what’s important to you and sign up in minutes. The shopping process can be completed in three easy steps:
The most common types of energy plans on our marketplace include:
Electricity plan term lengths depend on the type of plan and provider you choose. Common terms include month-to-month, 12-month, 24-month, and 36-month options.
The Choose Energy marketplace has no-deposit and pay-as-you-go energy plans for customers with low credit scores or shoppers who want to avoid paying a deposit. Many of these plans offer same-day connection, so you can start your service in no time.
To shop prepaid and no-deposit energy plans, enter your ZIP code and use the filter tool to narrow down your choices. You can also visit our no-deposit page for more details.
In deregulated markets, energy providers (also called suppliers or ESCOs in some states) generate and sell electricity to customers. Utility companies deliver energy to your home or business and maintain the power lines. This means utility companies are in charge of restoring power during an outage.
Choose Energy works with top providers across the country to show you a variety of electricity plans in one place. We only allow trusted providers on our marketplace, so you can get reliable and affordable electric service no matter which provider you choose. To learn more about the providers on our marketplace, visit our energy providers page.
Natural gas is also deregulated in some states, including California, Massachusetts, Georgia, Pennsylvania, Ohio, New York, New Jersey, Maryland, and Illinois. If you are interested in natural gas rates, visit our natural gas page and enter your ZIP code to find rates in your area.
Want to learn more about selecting the best energy plan for your home or business? We’ve compiled several resources to help make the energy-buying process easier. Explore some of our guides and helpful pages below:
Do you have more questions? Check out our frequently asked questions page.
Can I move my electric service?
Yes — most electricity suppliers allow customers who are moving to transfer their energy plan to their new home. In many states, you can shop for a new energy plan before your move if you want to switch plans. The details of moving your electric service depend on where you live, so visit your state’s page to learn the specifics.
How do I switch my energy provider?
Switching energy providers is easier than it may seem. First, if you already have an energy plan, you’ll need to determine if you will be charged an ETF. You can find this information on your plan’s electricity facts label (EFL). Next, enter your ZIP code.
We’ll show you plans in your area, and you can filter and compare the results to find the right option for your energy needs. From there, we’ll help you sign up for your new plan, and your provider will make the transition for your service.
Will I need to pay a deposit?
It might be necessary to pay a deposit. Each energy provider on our marketplace sets a different credit threshold. If you fall below this threshold, they may require a deposit. When you shop with us, we’ll let you know if you must pay a deposit for the provider you choose. We can also help you find no-deposit options. Visit our deposit guide to learn more.
Does Choose Energy run a credit check?
Yes, we run a soft credit check that doesn’t affect your credit score, and we only run it once. The energy providers we work with require a credit check before offering service.
Credit checks are a normal part of the electricity shopping process and allow providers to determine whether you need to pay a deposit. Visit our deposit guide for more information about the credit check process.