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Direct Energy

Direct Energy Rates, Plans, and Reviews

Written by Tessie Devlin


Edited by Jamie Cesanek


Last Updated: May 23, 2024

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About Direct Energy

Direct Energy provides a variety of fixed- and variable-rate plans across deregulated markets in North America. Although its headquarters are in Houston, plans are available in 14 states, including Washington, D.C., and three Canadian provinces. Direct Energy plans include perks like no deposit and green energy options.

To discover which Direct Energy plans are eligible for you, enter your ZIP code.

Why choose Direct Energy

As one of North America’s largest retail and business energy providers, Direct Energy aims to offer reliable and affordable energy services. The company provides a variety of resources to help its customers save on energy costs.

Direct Energy offerings include:

  • Fixed-rate and variable-rate energy plans
  • Free nights or free weekends
  • Energy plans powered by 100% green energy
  • Two years of complimentary Amazon Prime with qualifying plans
  • Autopay discount for some plans

Everything you need to know about Direct Energy

At Choose Energy, we work with trusted energy providers to connect energy customers with the best options in their area. We grade each company on service reliability, rates, customer service, and plan variety. Direct Energy is consistently one of the top providers in Texas and many other states, so we’re proud to feature the company on our marketplace.

Types of rates offered by Direct Energy

Direct Energy offers various fixed-rate and variable-rate plans. Here’s an overview of how these Direct Energy electricity rates work:

  • Fixed-rate plans: With a fixed-rate plan, you will pay one consistent rate for the duration of your contract, which typically lasts 12 to 36 months. This plan protects you from fluctuations in the energy market, but you’ll usually pay an early termination fee (ETF) if you cancel your plan before the contract expires.
  • Variable-rate plans: Having a variable-rate plan means the rate you pay will change from month to month. Your rate is tied to the wholesale cost of electricity, which changes often. In months of lower demand, your Direct Energy rate will decrease. When demand is higher, your rate will rise. On the plus side, you have the flexibility to change plans anytime.

To learn more about the types of Direct Energy electricity rates available in your area, enter your ZIP code on our marketplace.

No-deposit options from Direct Energy

Many electricity companies, including Direct Energy, require a deposit before you can begin service. Although the company occasionally grants exceptions, you’ll typically have to put down a deposit if your credit score isn’t high enough. Customers who may qualify for deposit exemptions must be:

  • Able to acquire a letter of credit from their previous electricity provider for paying the last 12 months on time
  • 65 years or older
  • Victims of domestic violence
  • Medically indigent

You may also be eligible for no-deposit energy plans from Direct Energy and other providers. To avoid a deposit, you can find prepaid plans on the Choose Energy marketplace by entering your ZIP code and filtering by plan type.

Green energy with Direct Energy

Texas is a leader in renewable energy in the U.S., ranking first for wind power generation and second for solar energy production. Regardless of which plan you choose, you will have at least some percentage of renewable content. To determine how much is in your plan, check the Electricity Facts Label (EFL). Direct Energy offers several plans with 100% green energy for residential and business customers. 

Moving or transferring service with Direct Energy

If you are moving to a new address, you can easily switch to a Direct Energy plan or transfer your Direct Energy service to your new location. Contact Direct Energy, and the company will handle the transfer. If you are moving outside the service area, you can switch to a different provider without paying an ETF.

Renting with Direct Energy

Direct Energy does not offer a plan specifically for renters. However, thanks to the different contract lengths available, you can match a fixed-rate energy plan to your lease. If you have a month-to-month lease, choose a variable-rate plan to keep your options more flexible and avoid an ETF.

Cancellation fees

Direct Energy charges an ETF for its fixed-rate plans if you decide to cancel your service before the end of your contract. These cancellation fees can vary between plans and typically range from $150 to $295. Check your EFL to know your fee before you cancel. ETFs don’t apply if you move to a new address outside Direct Energy’s service area.

Direct Energy business electricity

Direct Energy also offers electricity plans for small and large businesses and provides services to 78% of the Fortune 100 companies. The Choose Energy marketplace helps you explore commercial rates and tailor a plan for your company. If you’re a business owner in a deregulated area, visit our business electricity page to get help from our experts.

Other Direct Energy initiatives

Direct Energy provides various resources to help you lower your electric bill. The company also offers monthly pricing on home protection plans to help shield you from major repair bills. These home protection plans include repair and maintenance options for a variety of home systems and appliances. 

Direct Energy also donates to and provides employee volunteering opportunities at organizations that seek to benefit children’s hospitals. The company raises funds for programs such as the Neighbor-to-Neighbor Bill Assistance Program to focus on community support.

Direct Energy plans

Direct Energy has various plans available to fit the needs of most residents and businesses. These include fixed-rate and variable-rate plans with different term lengths. Enter your ZIP code on this page to find the best Direct Energy plan for you.

Live Brighter 12

This simple 12-month, fixed-rate plan is a great option if you want a short contract with a Direct Energy rate that decreases as you use more energy. If you cancel this plan before your contract ends, you’ll pay an ETF of $150.

Live Brighter 1K+ 24

If you regularly use more than 1,000 kilowatt-hours (kWh) of electricity per month and want to secure a lower long-term rate, the Live Brighter 1K+ 24 plan offers great value. As with Direct Energy’s other 24-month plans, your rate will stay the same for two years, and you’ll pay an ETF of $295 if you cancel early.

Live Brighter Lite 24

On the other end of the spectrum, the Live Brighter Lite plans are built for customers who use less than 1,000 kWh per month. You’ll pay a $9.95 monthly fee if your usage exceeds that level. This plan secures your rate for 24 months and includes an ETF of $295.

Twelve Hour Power 12

If you use more energy at night, you could save big with the Twelve Hour Power 12 plan. You’ll pay higher rates during the day but get free Direct Energy power from 9 p.m. to 9 a.m. every day, and your rates will be fixed for 12 months. If you cancel your plan early, you’ll pay an ETF of $150.

Direct Energy service areas

Direct Energy provides electricity service in many states, including Delaware, Illinois, Indiana, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, and Washington D.C. Here are some of Direct Energy’s service areas in Texas:

Direct Energy electric rates in my area

Like every company, Direct Energy rates can change based on your ZIP code. This price disparity is mainly due to different utility transmission charges. To ensure you get accurate rate information, search for electricity companies near you. Make sure to filter by the company to compare Direct Energy electricity rates.

Direct Energy reviews

Choose Energy assigns unbiased reviews and scores to the top electricity providers in Texas. Our scoring model is divided into customer service, accessibility, and plan options.

Overall Score3.5/5
Customer service3/5
Online accessibility5/5
Plan options2.3/5

Direct Energy has an overall score of 3.5 out of 5. To learn more about electric provider reviews, browse our full list here.

Tips for best electricity plans

Finding cheap electricity plans is simple with the Choose Energy marketplace. Enter your ZIP code to find an electricity company near you, compare plans, and shop cheap electricity rates.

A few things to remember

Review your plan’s EFL. This resource will help ensure you know the details of your plan, such as ETFs, rate per kWh, and your plan’s percentage of green energy.

Make the transition. After signing up for a plan, your provider will take it from there. They will work with your utility company to set up or transfer your services, and you should not experience any service interruptions.

Take note of any fees. When you review your electricity bills, you’ll notice charges from Direct Energy (the electric company) and your local utility, which delivers your electricity. Remember to contact your utility company if you experience any power outages.

How shopping for electricity works

In a deregulated energy market, shopping for electricity can feel overwhelming. But, with the free Choose Energy marketplace, you can shop and compare your available energy options in one place. 

Enter your ZIP code to explore a list of current Direct Energy electric rates and plans offered near you. You can filter for specific brands, contract lengths, rate types, and more. Once you have found the right energy option for your home, sign up through Choose Energy.

Tips to lower your electricity bill

If you’re struggling with energy costs, there are several ways to lower your electricity bill. Try reducing your energy usage, switching to energy-efficient appliances, or signing up for a lower electricity rate. Learn more in our guide to lowering your electricity bill.

Contact Direct Energy

  • Direct Energy headquarters: 12 Greenway Plaza, Suite 250, Houston, TX 77046
  • Direct Energy bill pay: Log into your Direct Energy account here or call 1-888-305-3828.
  • Direct Energy customer service number: Call 1-855-461-1926.
  • Outages: Report power outages to your utility company.

Frequently asked questions about Direct Energy

What services does Direct Energy offer?

As a Direct Energy customer, you can choose from a range of fixed-rate and variable-rate electricity plans for your home or business. The company also offers additional services like free usage periods, green energy plans, and a complimentary subscription to Amazon Prime.

Will Direct Energy require a deposit?

Like most energy providers, you will have to pay a deposit. However, Direct Energy offers deposit exemptions to those with good credit or in special circumstances.

Will Direct Energy charge me a cancellation fee?

If you cancel a fixed-term plan with Direct Energy before it expires, you must pay an ETF. However, this won’t apply if you move outside Direct Energy’s service area or have a variable-rate plan. 

What is the best Direct Energy electricity plan?

The best Direct Energy plan depends on various factors, including your energy usage habits, budget, and personal preferences. The Choose Energy marketplace lets you easily compare Direct Energy plans to decide the best option. You can browse electricity rates and plan features to help you decide. Enter your ZIP code to find the plans available in your area.

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