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Compare electricity rates by state

Find cheap electricity near you with Choose Energy

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.

For business

Shop for deregulated electricity plans

Thanks to energy deregulation, residents and businesses in many U.S. states have the opportunity to save money by shopping for electricity plans. Deregulation gives consumers the power to choose their own energy supplier and rate plan, and this boost in competition can drive prices down. 

If you’re curious whether you can find cheap electricity in your area, Choose Energy is here to help. Our independent marketplace is free and easy to use, and it provides a one-stop shop to compare electricity rates. Read on to learn more.

What you’ll find on this page

Compare deregulated energy states

Across the country, many states have deregulated energy markets. In these areas, electricity providers compete for business by offering cheaper energy rates and promotions.

Deregulation in Texas, for example, has resulted in cheaper electricity rates than the national average across residential and commercial markets. According to the Energy Information Administration (EIA):

  • Average residential electricity rates in Texas were 9.2% lower than the national average cost as of March 2023
  • Commercial power rates were also significantly cheaper in Texas, at over 31% less than the national average.
  • Average industrial rates in Texas were 20.2% lower than the national average.

These are the results for just one state, but energy consumers across the country can profit from deregulation with lower prices. Currently, 28 states and the District of Columbia allow consumers and businesses to shop for electricity plans, natural gas plans, or both.

If you are shopping for a new electricity plan or a cheaper electricity 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.

Compare electricity rates in your area

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 cheap electricity rate if you shop electricity rates at an off-peak time of year, like the spring or fall.

As of March 2023, the average price for a kilowatt-hour (kWh) of electricity in the U.S. was 15.85 cents. North Dakota and Idaho have the lowest residential electric rates at 9.72 and 10.09 cents per kWh, respectively. By contrast, Hawaii has the highest electricity rate, averaging 44.25 cents per kWh.

Depending on where you live, you may be able to secure a lower rate with the Choose Energy marketplace. Compare energy plans and shop electricity rates 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 and select a plan.

Shopping for an electricity plan with Choose Energy

The Choose Energy marketplace is free to use and allows you to compare low-cost energy rate plans and top providers in your area to find an energy plan that fits your needs. Filter by what’s important to you and sign up in minutes. The whole process only takes three easy steps: 

  • Enter your ZIP code. We’ll show you a list of the available providers and plans in your area. Filter your results for specific features, providers, term lengths, and more.
  • Select a plan. Once you’ve found the right fit, sign up online or over the phone. Need some guidance? Call our energy experts at the number on your screen, and they’ll walk you through the process.
  • Enjoy your service. Your new provider will handle the switch with your utility company, and you shouldn’t experience any power interruptions.

Understand electricity plans and options

The most common types of energy plans on our marketplace include:

  • Fixed-rate plans: With this option, you will pay the same electricity rate for every kWh of energy you use for your entire contract. Fixed-rate plans are great for consumers who want stability and protection against energy rate hikes. However, you’ll pay an early termination fee (ETF) if you end your service before your contract is up (unless you’re moving out of the service area).
  • Variable-rate plans: With these plans, your rate will change based on fluctuations in the energy market. Therefore, variable-rate plans are much more susceptible to seasonal changes and price spikes but can offer cheaper rates during off-peak periods. You are also free to switch plans when you need to without worrying about ETFs. 

Electricity plan term lengths

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.

  • Month-to-month terms: Usually only available with variable-rate plans, these allow you to switch to a new plan whenever you want.
  • 12-month terms: These plans are excellent for renters with year-long leases or consumers who don’t want to be tied to a contract for more than one year. You don’t have to shop frequently but will still have flexibility when needed.
  • 24- and 36-month terms: Longer terms are only available at fixed rates and offer stability for consumers who want to “set and forget” their electric service.

No-deposit and prepaid electricity plans

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.

Electricity providers and utility companies

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. They are also 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 so you can compare energy supplier rates 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.

Energy buying resources

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.

Frequently asked questions about energy shopping

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 and cheap electricity rates 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 to begin your service. Each energy provider on our marketplace sets a different credit threshold, below which you may be required to pay 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?

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.