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What is considered the cheapest electricity rates per kWh in Texas will vary depending on who is purchasing the electricity, when they’re buying it, how much of it they plan to use, and during what times.

Residential and commercial rates are naturally different, but other components are driving the cost of electricity that will affect what can be considered the cheapest electricity per kWh.

Today’s post will help you understand who has the cheapest electricity per kWh and what a good price per kWh looks like, so you can make an informed decision when choosing your next energy plan.

Are Electricity Rates Going Up in Texas in 2022?

Did you know that electricity prices in Texas have hit a record high this summer? Reports show that Texans are paying 50% more than they usually pay in their energy bill. And residents are feeling the effects of high Texas electricity prices.

The Energy Information Administration is a government agency that monitors energy production, consumption, and price history across the nation.

According to the last four years of electricity prices data across all sectors published, the average electricity rate per kWh has risen from 11.2¢ in 2018 to 12.06¢ in the first three quarters of 2022.

This may not seem like a large increase, but these are annual numbers, meaning they consider all of the fluctuations that weather, regulation, and natural disasters can cause.

Ultimately, the cost of electricity is rising across the country, and Texas is no exception. But how does Texas fare compared to other states?

Texas is the number one producer and consumer of electricity in the United States. Despite Texas’ heavy energy usage, residential Texas electricity rates which are nearly 14% lower than the national average. Commercial electricity is also cheaper in Texas, nearly 24% less than the rest of the country.

Even though your bill may be rising, you’re still getting some of the cheapest electricity rates per kwh in the country enjoy thanks to Texas’ deregulated market.

What is a Good Price for kWh in Texas?

The cheapest electricity rates per kwh will vary based on several factors, including:

  • The time of year
  • Your home’s electricity usage
  • Where you live
  • Usage credits
  • Free nights and weekends

The retail electricity market in Texas is very dynamic. Texas electricity companies adjust their energy rates based on the anticipated demand, weather forecasts, and market conditions.

On average, the cost of residential electricity in Texas was 13.53¢ per kWh in July 2022. July is generally the peak of the electricity demand across the state because millions of air conditioners are buzzing all day long to combat the summer heat.

Commercial and industrial electricity rates are generally lower. Commercial electricity rates were about 9.89¢, while industrial consumers were paying 8.51¢.

In general, if your energy plan was charging less than these averages this summer, you were getting a good price.

While the PUCT and EIA -Energy Information Agency- publish average Texas electricity prices. The cheapest electricity rates per kwh for each consumer will actually depend on their unique consumption.

Sites like Power to Chose will ask you to enter your zip code and show you many electricity plans in Texas. And the common wisdom is that fixed rate plans are the safest choice.

However, to ensure the your get the best deal when looking for plan for your home use a smart comparison tool like EnerWisely.

EnerWisely will compare all companies, plans and rates available based on your consumption. And because this is the only free service that uses your smart meter data it is super accurate.

What are the cheapest electricity rates per kWh in Texas?

The plan advertising the lowest rate will not always deliver you the cheapest electricity per kWh. To ensure you’re always paying the lowest prices, consider other plan factors like time of use and usage credits. For more information on how to find the best electricity rates, see our post here.

Find the Cheapest or Lowest Electricity Rates in Dallas, Houston, or Anywhere in Texas

EnerWisely’s free tool will take on all the work for you when searching for the lowest electricity rates.

We’ll start by collecting information in the form of our home energy quiz, which helps you understand the following:

Your home’s energy usage:

Include the pattern of usage (i.e. what times of day are you most actively using your electricity?)

Your home’s energy efficiency:

Leaks, waste, and regular inefficiencies can make a big difference in your bill. Only EnerWisely takes this into account when finding the best plan.

Your carbon footprint:

If managing your home’s carbon footprint is important to you, we’ll make sure to find you a green energy plan that suits your needs.

Of course, we’ll show you all of the factors that influenced your score. We won’t stop there, either. We’ll also include a list of ways that you can improve your home’s efficiency and start saving money no matter what electricity plan you chose.

What is the Best Way to Compare Company Electricity Rates in Texas?

Finding the plan with the cheapest electricity rates per kWh used to be a chore that could require hours of research, not to mention the stress of worrying if you’ve chosen the right plan for your needs.

EnerWisely noticed the pain involved in searching for which is the cheapest electricity plan , that’s why we introduced our free online plan matchmaking tool.

As our guide hopefully demonstrates, there is no better tool online when it comes to shopping and comparing Texas electricity plans.

 

Cheapest Electric Rates in Houston, Texas

Company Plan Name Cost per kWh Usage Credits? Renewable % Term (Months)
Flagship Power Galleon 36 11.7¢ $100 @ 1,000 kWh 21 36
Frontier Utilities Frontier Power Saver 3 12.2¢ No 26 3
Rhythm Energy Simply Choose 34 12.3¢ No 100 34
Lone Star Green 36 12.3¢ No 100 36
Pulse Power Texas Fixed 36 12.4¢ No 21 36

 

Lowest Electricity Rates in Dallas, Texas

Company Plan Name Cost per kWh Usage Credits? Renewable % Term (Months)
Flagship Power Galleon 36 10.64¢ $100 @ 1,0000 kWh 21 36
Lone Star Green 36 13.20¢ No 100 36
Rhythm Energy Simply Choose 36 13.57¢ No 100 36
Pulse Power Texas Fixed 36 14.39¢ No 21 36
Texpo Energy Classic 12 15.1¢ No 25 12

 

Compare Power Plans with EnerWisely to Really See Who Has the Cheapest Electricity Per kWh in Texas

Texas electricity price forecast is impacted by a number of factors beyond regular seasonal and weather effects. From the impact of the word in Ukraine, to the volatility in oil and gas supply and demand, to the lingering effects of Texas’ winter storm. They all play a role of what could be a roller coaster in electricity prices.

We have plans that suit all unique needs, including time of use, prepaid, and usage limit plans which allow our customers to take full advantage of the flexible plan options that deregulated electricity in Texas provides.

If you’re ready to improve your home’s energy efficiency and find the best plan for you, take our free home energy quiz and start saving money on your electric bill today.

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