When searching for electricity plans in Houston, you’ll likely encounter several different plan types. The most popular options include fixed-rate, variable-rate, and no-deposit electricity plans. Rates and plan types on the Choose Energy marketplace are all-inclusive, meaning the price you see includes base fees and transmission and distribution (TDU) charges. However, the prices will not include tax. Discover more about the types of available energy plans with Choose Energy.
Contract term lengths
If you decide to go with a variable-rate or no-deposit plan, you won’t have to worry about electricity contract term lengths. With a fixed-rate plan you will have a contract for a certain period of time, usually ranging from six to 36 months. You will most commonly find plans with 12-, 24-, and 36-month terms. Longer electricity contracts can often lead to more affordable rates if you are able to commit to them. Shorter term lengths are a good option for renters or those who like to shop around.
With a fixed-rate plan, you will be protected from fluctuations in market prices and will gain more stability in your electric rate than with other types of plans. Your rate will not change over the length of your term agreement, which usually lasts between 12 and 36 months. If you want to cancel your power contract before your term is complete, you may have to pay an early termination fee (ETF). However, this fee will not be required if you are moving out of the coverage area.
Variable-rate plans come with some risk because the rate you pay every month changes based on the wholesale cost of electricity. When demand is low during milder temperatures (usually spring and fall), you can take advantage of lower rate trends. However, the electricity rate you pay may increase during periods of high demand when temperatures are more extreme. Variable-rate plans don’t require an electricity contract, allowing you to switch plans at any time.
Prepaid and no-deposit plans
Your energy provider might require a deposit before starting your service, depending on your credit score. If you want to bypass the credit check and deposit, consider no-deposit energy plans. A common no-deposit option is a prepaid electricity plan, which lets you pay for your power upfront. When your funds begin to deplete, your provider will send a reminder to add more money to your account.
Enter your ZIP code and filter for “all credit-approved” plans on the Choose Energy marketplace to find prepaid plans in your area.
With a time-of-use plan, the time of day and season determines your rate. You will pay more when demand is high and less when it is lower. You can reduce your energy bill with this type of plan by using energy during low-demand periods, such as later at night, early in the morning, or on weekends and holidays.
Houston green energy
Texas is a national leader in green energy generation, especially wind energy and solar power. Houston residents can choose from various green energy plans from several electricity companies.
Every Texas energy plan includes a percentage of green energy. To find the exact amount in a plan, check the Electricity Facts Label (EFL). A Houston provider that offers 100% green energy plans is Gexa Energy.
Enter your ZIP code and filter for green energy plans offered near you.
Business electricity rates
Houston businesses can also use the Choose Energy marketplace to secure affordable commercial electricity rates. Our energy experts can compare commercial electricity rates from the top Houston electricity providers and help you build a customized commercial plan for your business. Visit our business energy page to request a quote for your Houston commercial energy or enter your ZIP code to compare rates near you.
How do I find the cheapest rates?
The current average residential electric rate in Texas is 14.46 cents per kWh, which is about 11.3% higher than rates in 2022. The lowest available Houston rate on the SaveOnEnergy marketplace is 9.2 cents per kWh, which is 44.5% lower than the average Texas rate.
Choosing a plan with Choose Energy allows you to compare affordable rates from quality electricity providers and sign up for your plan all in one place. Access cheap energy in Houston by entering your ZIP code today.
When should I buy to get the best deal?
Over the previous year, electricity prices in the U.S. increased from 12.82 cents per kWh in March 2022 to 14.46 cents per kWh in March 2023, according to the Energy Information Administration (EIA). As the hot Houston summer weather begins, it’s important to check whether you still have the most affordable option before renewing your current plan.
Use the Choose Energy marketplace to compare the available plans and rates in your area and find cheap energy in Houston. Enter your ZIP code to get started.
Compare cheap electric rates in my area
When you compare energy rates in Houston, it’s important to search for plans in your ZIP code since energy rates can vary by location. The local utility company determines utility transmission charges, which can change depending on where you live. Residents in one part of Houston may pay a different rate than those living in another area.
The Choose Energy marketplace allows you to compare accurate energy rates and plans near you. Enter your ZIP code on this page to find the current electricity rates in your area.