Small Business Energy Plans in Texas
Compare the best electricity rates for your small business.

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The best small business electricity rates

Business owners in Texas have the power to choose an energy company and plan. Whether your business operates in Houston, Dallas, Arlington, or another city in Texas, you can save money on your business electricity bills with a customized energy plan. Choose Texas Power partners with top business energy suppliers, like Ambit Energy and TXU Energy, to offer the best electricity rates for small businesses. Learn more about your small business energy plan options today.

 

Choose Texas Power is not affiliated with Power to Choose, powertochoose.org, or the PUCT.

 

Energy provider     Plan type Plan length (months) Service area
Ambit Energy Fixed-rate 6, 12, 24, 36 Arlington, Corpus Christi, Dallas, Fort Worth, Houston, Killeen
TXU Energy   Fixed-rate and variable-rate Month-to-month, 12, 24, 36 Abilene, Laredo, Houston, Dallas, Plano, Corpus Christi, Irving, Garland, and more

How to shop for small business energy

Choose Texas Power can help you select an affordable small business energy plan in a few easy steps. Use the following instructions to connect with top energy suppliers offering the best small business electricity rates in your area.

  • Prepare your information. Gather a previous electricity bill, employee identification number, and business address. 
  • Contact us. Call the number on your screen or fill out the form on this page to contact our business energy experts. Expect questions about your business type, energy consumption habits, and average monthly usage. 
  • Get customized business energy plans. Your designated energy expert will provide custom options from reputable business electricity providers without any cost or obligation to you. 

After connecting with our team, you will receive a phone number to directly call your agent whenever you have a question or need assistance.

Setting up electricity for small businesses

Learn how Choose Texas Power helps you compare and sign up for business energy, whether you have a new or established business. 

New businesses

As a new business, you likely won’t have a specific energy usage history showing your consumption habits. Energy companies may use the size of your space and business type to estimate energy usage and determine the best plan options. In addition, you can estimate your usage based on previous tenants or nearby competitors. As you learn more about your energy usage, you may switch providers or plans to save money. 

Credit history is another consideration. New businesses without established credit may have fewer plan options. Some providers offer small business energy plans with flexible credit requirements. Choose Texas Power’s energy experts can guide you through the decision-making process to explore the best electricity plan options for your new business. 

Established businesses

Established businesses have more energy usage history than new businesses, which can help you determine the best plan type and usage rate. Businesses with more experience can make informed decisions about energy efficiency and sustainability practices to decrease overall operational costs. 

Understanding electricity for small businesses

Consider the following factors when shopping for small business electricity:

  • Electricity rates: Rates fluctuate based on the energy market and location. The rate you pay may differ from a small business nearby. The average business electricity rate in Texas is currently 8.78 cents per kilowatt-hour (kWh). Keep this rate in mind when comparing business electricity rate quotes.
  • Energy consumption: Your business electricity bill will depend on your energy consumption, which is the amount of electricity used to operate your business.
  • Business size: The larger the space, the more energy is needed to power lights, air conditioning, and other essential business operations. Small businesses will likely have lower monthly energy bills than large businesses. 
  • Business type: A church or automotive shop has different usage habits than a property management company with multiple apartments. An energy plan tailored to your small business type can help you save money on energy bills. 
  • Time of year: Electricity rates are typically lower during seasons with mild temperatures, like spring and fall. Locking in a low fixed rate during spring or fall can help reduce costs throughout the year. 

Types of electricity plans

Explore energy plan types for your business, including fixed, variable, block, and indexed rates. Review the details of your selected plan in the Electricity Facts Label (EFL). 

Fixed-rate

A fixed-rate energy plan provides stability with a consistent rate for the length of your contract. Fixed-rate plans are a good option for small businesses that prefer predictable monthly bills without surprises.

Variable-rate

With a variable-rate plan, the price you pay each month depends on the energy market, resulting in unpredictable energy bills. If your small business prefers advanced financial planning, variable rates are not helpful. You may save money with low rates during times of lower energy demand, but you risk paying expensive rates when demand is high. If your budget is flexible, consider variable rates. 

Block-rate

A block-rate plan allows businesses to buy a fixed amount of energy at a specific price and pay market rates for any extra energy usage. Block rates are a mix of fixed and variable rates. If you can purchase a block of energy at a low rate and stay conscious of your energy usage, you could save money on electricity bills. However, you are still subject to market fluctuations if your usage exceeds the fixed amount. 

Indexed-rate

An indexed-rate energy plan is also a mix of fixed and variable rates. It is based on a mathematical formula tied to a commodity index. If your business can adjust energy usage based on electricity prices, this plan type may be a good fit. Make sure you understand the formula before you sign up for an indexed-rate plan.

Electricity use rate types

While plan types determine specific rates you pay and other details of your energy plan, usage rates determine the cost structure. Learn more about usage rate types to determine which is best for your business. 

Time-of-use rates

With a time-of-use (TOU) rate structure, prices change throughout the day based on peak hours. Peak hours are when energy demand is highest, like on weekday afternoons. Off-peak hours are when energy demand is lower, such as late at night or early in the morning. When energy demand is higher, rates are also higher. When it is lower, rates are less expensive. Businesses can use TOU rates to their advantage by running certain operations during off-peak hours. 

Non-time-of-use rates

A non-TOU rate structure has consistent rates throughout the day and night. Your bills are more predictable because the rate does not change. If you prefer stability and planning ahead, non-TOU rates are a good option. 

Small business electricity FAQs

How much energy does a small business in Texas use?

Small businesses use an average of 6,019 kWh of energy per month, according to Energy Administration (EIA) data.

 

What is the cheapest energy plan for a small business?

The cheapest energy rate will differ based on business type and energy usage. Call the number on your screen or fill out the form on this page to receive quotes for the cheapest electricity plans.

 

How can you calculate electricity costs for a small business?

You can calculate small business electricity costs by multiplying the rate per kWh by the amount of kWh of energy used. For example, based on the latest average commercial electricity rate in Texas (8.78 ¢/kWh) and the average usage (6,019 kWh), a small business’s monthly electricity bill costs about $528.47.

 

How can I reduce my small business’s energy consumption?

Increase the energy efficiency of your small business by installing ENERGY STAR appliances and office equipment, using a smart or programmable thermostat, scheduling regular heating and air system maintenance, and reducing energy usage during peak hours. You can also contact Choose Texas Power for available options to find affordable business electricity plans.