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Discover cheap commercial energy rates
Finding the perfect energy provider and plan for your business can be a tough decision. There are a variety of factors to consider, including business type, energy usage, and budget. Choose Texas Power can help you save time, energy, and money by connecting you with top electricity companies offering cheap commercial energy rates for your business.
Compare business electricity plans today
Commercial electricity providers in Texas
Deregulation gives you the power to choose your commercial energy provider from a variety of available options. Your electricity provider is in charge of managing your account and sending monthly energy bills.
Choose Texas Power works with the best energy companies in Texas to help business owners secure cheap commercial energy rates. We partner with commercial electricity providers like Ambit Energy and TXU Energy, making it easy to build a custom business energy plan with high-quality service.
Utility companies for businesses
No matter which energy provider you choose for your business, your utility company will be assigned based on location. Texas has five major utility companies: AEP Texas Central, AEP Texas North, CenterPoint Energy, Oncor Electric Delivery, and Texas–New Mexico Power.
Your utility company handles delivering electricity to your business through power lines and responding to power outages. If your business experiences a power outage, contact your utility company, not your provider.
Types of business electricity plans
The best energy plan type for your business depends on your model, usage habits, and budget. Learn more about common plan types:
Fixed-rate plans
A fixed-rate plan offers a stable electricity rate throughout your contract length. Regardless of market fluctuations, fixed rates provide predictable energy costs for your business. Companies with consistent energy demand can benefit from fixed-rate plans. For example, manufacturing companies often have a continuous production process and significant energy usage, so a fixed-rate plan is likely their best option.
Variable-rate plans
A variable-rate plan offers fluctuating energy prices based on market conditions. While you may save on energy costs during periods of low demand, you risk higher rates during high demand. If your business has lower usage during peak seasons, you could save money compared to a fixed-rate plan. For example, schools may benefit from a variable-rate plan because of lower energy usage during summer break.
Renewable energy plans
You can power your business with green energy, such as solar or wind, with a renewable energy plan. Choosing a renewable energy solution can reduce your business’s carbon footprint and demonstrate dedication to sustainability. For example, small businesses or apartment complexes may benefit from showcasing a commitment to green practices and appealing to eco-conscious customers.
Average business electricity rates in Texas
The size and type of your business impact how much electricity it consumes each month. Larger companies may have higher overall costs, but the business owner may be able to secure a cheaper energy rate per kilowatt-hour (kWh) than someone who owns a small business. Fill out the form on this page to contact our team for an accurate price estimate for your business size.
The following table breaks down annual business energy bills in Texas. Based on the latest data from the Energy Information Administration (EIA), the average commercial energy rate in Texas is 9.03 cents per kWh.
Business size |
Annual usage (kWh) |
Monthly cost |
Yearly cost |
Micro | 5,000–15,000 | $452–$1,355 | $5,424–$16,260 |
Small | 15,000–25,000 | $1,355–$2,258 | $16,260–$27,096 |
Medium | 25,000–50,000 | $2,258–$4,515 | $27,096–$54,180 |
Large | 50,000–100,000 | $4,515–$9,030 | $54,180–$108,360 |
How to reduce your commercial energy costs in Texas
You may be able to save on monthly utility bills by signing up for—or switching to—an energy plan with a cheaper commercial electricity rate. Several factors influence your rate. Here are our top tips for lowering your business’s monthly utility costs.
Consider key plan factors
- Business type: Small and large businesses have varying electricity needs and usage patterns. Understanding how your business uses energy helps determine the best energy plan. For example, manufacturing facilities may receive a lower rate per kWh because they use more energy than a small retail store, but the overall bill will still cost more because the usage is much higher.
- Energy usage: Review your energy consumption patterns to determine what uses the most energy and how you can shift your company’s habits to improve efficiency and lower costs.
- Contract length: You might be able to save money by signing up for a longer contract. Long contracts often have lower rates. Shorter contracts may offer flexibility, but your business is subject to potential rate spikes when the contract ends.
- Green energy: While green energy rates may appear more expensive, long-term environmental benefits and potential tax incentives can lower your overall cost.
- Energy efficiency: Installing LED lighting, upgrading to ENERGY STAR® appliances, and implementing other efficiency measures can lower energy bill costs by reducing consumption.
Avoid short-term plans
Short-term plans usually range from one to six months and can lead to higher costs at the end of your contract, resulting in unpredictable energy expenses. When you sign up for a long-term plan (12 to 36 months), you can lock in a cheap commercial rate and protect your business from rate spikes or market volatility.
Compare quotes with Choose Texas Power
Take advantage of Choose Texas Power’s consultative experience to find customized energy solutions for your business needs. Fill out the form on this page or contact our team to compare business energy quotes with no commitment.
By comparing quotes from multiple providers, you can secure the best rate and save money on energy expenses for your business. After contacting our team, you’ll gain direct access to an energy expert for questions and plan-comparison assistance.
Switch commercial electricity providers
You may be able to save money on your business energy expenses by switching providers or plans offering lower rates and benefits for your business type. Start by contacting our team using the online form or by calling the number on your screen.
During your consultation, our energy experts will ask questions about your electricity usage and savings goals to help build the best plan for your business. We’ll provide options for you to compare and choose from, helping you build a custom commercial energy plan tailored to your needs.
Once you’re ready to sign up, our team will guide you throughout the switching process to ensure a smooth transition. After switching providers, you can stay connected with our team to adjust your energy plan as your business grows and your needs change.
Business electricity FAQs
Which energy supplier is best for a business?
The best energy supplier for your business personalizes plans to fit your needs. Choose Texas Power partners with top-rated energy companies, such as TXU Energy and Ambit Energy, to offer a variety of options. Before signing up, consider your budget, usage patterns, and ideal contract length.
Are business electricity prices capped?
No, there is not a cap for business energy. Business rates are usually based on demand, energy source, and market conditions. Regularly reviewing and comparing prices helps ensure you get the best rates available.
Why are electric rates for businesses lower than residential rates?
Residential rates are often more expensive than commercial rates because of usage levels. The average household in the U.S. uses about 855 kWh a month, while the average business uses about 6,054 kWh. Businesses frequently secure a lower rate per kWh because their higher usage effectively lets them “buy in bulk.”
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