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Compare Small Business Electricity Rates

Find an affordable commercial energy rate for your small business.

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

Small business energy rates

Businesses have the right to choose an electricity supplier in deregulated energy markets like Texas and New York. Energy choice creates competition among power companies to provide the best small business electricity rates and high-quality service. 

Choosing a tailored energy plan helps save money on operational costs. Review your usage needs and patterns to choose an energy plan with the most value. Call the number on your screen or fill out the form on this page to explore small business energy plans.

Average small business electricity rates

The average price of small business electricity in the U.S. is 12.76 cents per kilowatt-hour (kWh), based on the latest Energy Information Administration (EIA) data. However, electricity rates vary by provider, plan, and location. Your business could save money on monthly energy bills by picking a plan tailored to its energy usage.

Current small business energy rates

Small business electricity rates vary by plan type, location, and demand. With a customized energy plan, you can maximize operational spending for cost savings. Call our team or fill out our commercial energy form on this page to learn more about today’s small business electricity prices. 

Our small business energy experts

At Choose Energy, our experts provide a consultative experience to meet your unique business needs. When you request information about business energy plans, you’ll receive a direct line to an energy expert to answer questions and provide assistance. We partner with electricity suppliers across many states to help you find the best energy rate for your business. 

Types of plans

Energy plan types include fixed, variable, block, and indexed rates. Learn more about the common types of small business energy plans to determine which is best for you. 


Fixed-rate energy plans offer budget stability and predictable monthly bills. With a fixed-rate plan, your rate per kWh remains the same throughout the length of your contract. This plan type protects you from fluctuations in the energy market, making it a great choice for businesses wanting to avoid unexpected changes in operational costs and aid in financial planning. 


With this plan type, the price per kWh you pay may change monthly based on the energy market, making your monthly energy bill unpredictable. Variable-rate plans have the risk of high rates when prices spike due to increased demand and extreme weather conditions. A variable-rate plan may be a good fit if your business has a flexible budget and can adjust energy usage based on market conditions. 


Block-rate energy plans allow businesses to purchase a certain amount of energy at a fixed rate, with additional energy usage billed at the market rate. The fixed block rate helps your business predict energy costs for financial planning. Any additional usage may benefit from lower rates when market conditions are favorable but risk higher rates when the market is not. A block-rate plan may be a good option if you are conscious of your business’s energy usage patterns and are open to potential risks.


Indexed-rate energy prices include the index price and fixed adder. The indexed price fluctuates based on a benchmark of market conditions, while the fixed adder is a consistent rate from your small business electricity supplier. You may save money if your business adjusts operations based on energy prices. If your business is not aware of energy market trends, you may consider a fixed-rate plan for predictable monthly bills. 

Types of usage rates

While your energy plan type determines costs and features, usage rates define how you pay for energy used. Two common types of usage rates include time-of-use (TOU) and non-time-of-use (non-TOU) rates. Learn more about the usage rate types and what they mean for your small business. 

Time-of-use rates

Prices change throughout the day based on energy demand with a TOU rate. Peak hours, like weekday afternoons, have higher rates due to higher demand. Off-peak hours, like late nights or weekends, often have lower rates. TOU rates benefit businesses that can adjust usage to match off-peak hours. For example, a manufacturing company running operations overnight may save on electricity costs with TOU rates during late night hours.

Non-time-of-use rates

With a non-TOU rate structure, rates are consistent throughout the day. Non-TOU rates provide predictability and stability because the rate is constant. While you may not experience savings during off-peak hours, non-TOU rates offer stability and ease of budgeting for small businesses.

Electricity rate seasonality

Energy demand is typically lower in the spring and fall seasons due to mild weather conditions. When temperatures are extremely hot or cold, demand is higher because heating systems or air conditioners are used more frequently. The best strategy is to secure a low small business electricity rate during the spring or fall. 

Energy saving tips for your small business

You can save energy as a small business in a variety of ways. 

  • Heating and air system maintenance: Regular maintenance of your heating and air conditioning systems ensures they operate properly. Inefficient or blocked systems must work harder to function, resulting in high energy bills. 
  • Use smart thermostats: You can remotely program and adjust your thermostat to specific temperatures, whether in the office or away. 
  • Energy-efficient upgrades: Consider installing LED lights and ENERGY STAR appliances to increase energy efficiency.
  • Install solar panels: Consider offsetting your electricity usage with renewable power from solar panels
  • Shop the best rates with Choose Energy: Use the Choose Energy marketplace to find the best small business electricity prices. Contact our expert team to learn about energy plan options in your area. 

Small business energy FAQs

What are the best rates for business electricity?

The average U.S. business energy rate is currently 12.76 cents/kWh. Our experts can connect you with providers offering cheaper rates. When picking the best rate and plan, consider the plan type, usage rate, and your business’s energy consumption patterns.

Who is the cheapest small business energy supplier?

The cheapest small business energy suppliers depend on your electricity usage and location. Choose Energy can help you find the cheapest business electricity options. Call the number on your screen or fill out the form on this page for small business energy quotes from providers like Ambit Energy

Is business electricity cheaper than residential energy?

Yes. Commercial electricity rates are cheaper because businesses use significantly more energy than residential homes, so you can buy in bulk. On average, residents use about 899 kWh per month, six times less than businesses (6,019 kWh/month).