When shopping 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. Energy rates and plan types on the Choose Energy marketplace are all-inclusive, meaning the price factors in base fees and transmission and distribution (TDU) charges. However, the prices will not include tax, and rates will vary depending on your usage tier (i.e., how much energy you use each month). Filter by energy usage to make sure you’re comparing rates within your usage tier.
Discover more about the types of available energy plans in Houston with Choose Energy.
Contract term lengths
If you decide to go with a variable-rate or prepaid plan, you won’t have to worry about electricity contract term lengths. With fixed-rate plans, you will have a contract for a certain period of time, usually ranging from six to 36 months. Longer electricity contracts can often lead to more affordable electricity in Houston if you are able to commit to them. Shorter term lengths are a good option for renters or those who like to shop around.
Fixed-rate plans protect you from fluctuations in market prices and provide a more stable electricity rate than you get 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, your provider should waive this fee if you move out of its coverage area.
Variable-rate plans come with some risk because the rate you pay every month changes based on the market cost of electricity. You can take advantage of cheaper rate trends when demand is lower, which usually occurs during seasons with milder temperatures (like spring and fall). However, the electricity rate you pay may increase during periods of high demand when temperatures are more extreme or weather events impact capacity. You don’t have to sign a contract for a variable-rate plan, meaning you can switch plans at any time.
Prepaid and no-deposit plans
Your provider might require a deposit before starting electricity service, depending on your credit score. If you want to bypass the credit check and deposit, consider light companies with no-deposit energy plans. A common no-deposit option is a prepaid electricity plan, which lets you pay for your power upfront. When the funds in your account begin to run low, 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 electricity 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, ranking first in wind energy production and second in solar power generation. Every Texas power plan includes a percentage of green energy. To find the exact amount in a plan, check the Electricity Facts Label (EFL).
Residents can choose from various green energy plans from several electricity companies in Houston. Energy companies in Houston offering 100% green energy plans include Gexa Energy and Green Mountain 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 find affordable commercial electricity rates. Our energy experts can compare business electricity rates from the top Houston electricity providers and help you build a customized business electricity plan. Visit our commercial electricity page to request a quote for your Houston business or enter your ZIP code to compare rates near you.