Explore the Best Texas Electricity Companies for Apartments

Why most Texas energy plans don’t work for apartments

The challenge many renters face when shopping for electricity is that most Texas electricity plans aren’t designed for apartments. Data from the Energy Information Administration (EIA) shows that the average home in Texas is 1,734 square feet. Unsurprisingly, most Texas energy companies tailor plans for customers in this category.

A recent study conducted by our team showed that the lowest rates are at the 1,000–2,000 kilowatt-hour (kWh) usage tier, while the highest rates are at the 500 kWh usage tier. This structure creates a massive problem for energy shoppers living in apartments. Despite having lower energy needs and a smaller home, they are stuck with some of the highest electricity rates.

Apartments need a different type of energy company

Compared to houses, apartments typically have much lower energy needs. According to data from our marketplace, homes with 800 or fewer square feet use about 873 kWh per month, while homes between 800 and 1,500 square feet use about 1,046 kWh. The difference largely comes down to having less space to heat, cool, and light. Renters also tend to have unique needs — while homeowners may want the stability of a long-term contract, renters often prioritize flexibility, fewer upfront costs, and shorter contracts.

Because of these differences, shoppers living in apartments should evaluate energy companies differently than homeowners. The best company for you should offer competitive pricing below 1,000 kWh, flexible contract options, and renter-friendly incentives.

How we evaluate electric companies for apartments

To determine which energy companies offer the best deals for apartments, we searched for the following criteria:

1. Affordable pricing for usage below 1,000 kWh
2. Bill credits or other incentives below or around 1,000 kWh
3. Flexible contract lengths that range from zero to 12 months
4. A satisfaction guarantee that lets shoppers switch plans
5. Unique ways to save on upfront costs
6. Availability of plans for apartments

The best energy companies for apartments

The best energy company and plan vary depending on the type of apartment. After a thorough analysis, we’ve identified which Texas energy companies provide the best solutions for apartments, and which plans we recommend.

Best overall for apartments: Direct Energy

Direct Energy is our top pick for apartment energy needs because it offers multiple plans geared toward low energy usage. It also offers a 90-day satisfaction guarantee, allowing you to switch to another Direct Energy plan if the first one isn’t a good fit.

• The Apartment Basics 12 plan is one of Direct Energy’s best offers for apartments because it charges a lower rate for usage up to the first 1,000 kWh. Enjoy stable energy bills for 12 months with this fixed-rate plan.
• The Live Brighter Lite plan is tailored to apartments because it waives the usage charge for energy usage below 1,000 kWh. This plan is available with a one- or two-year contract length for added flexibility.

Best for studio apartments: APG&E

Studio apartments usually have one occupant in a small space, so these residents need a plan that caters to the lowest usage tier. APG&E stood out for the Rent Simple Saver 12 plan because it offers a good deal for usage around 500 kWh. Here are the key details:

• A fixed electricity rate for 12 months
• A $35 bill credit when you use at least 500 kWh
• No monthly base charge

APG&E charges a $150 early termination fee (ETF) if you cancel early, so make sure you can commit to a one-year contract if you choose this plan.

Best company for month-to-month renters: TXU Energy

If you are renting month-to-month, it’s best to have an energy plan that aligns with your situation in case it changes on short notice. TXU Energy offers the Flex Rewards plan, a month-to-month plan that’s perfect for renters who need flexibility. The main drawback is that the plan has a variable rate, which fluctuates each month, so your bills may be unpredictable. This plan includes:

• A variable rate
• No contract
• No cancellation fee
• A 3% cashback loyalty reward

Best company for no-deposit electricity: Payless Power

Payless Power offers two prepaid, no-deposit electricity plans for shoppers who want to skip the upfront cost. Consider the 6 Month – Prepaid plan or the 12 Month – Prepaid plan to gain stability without a deposit. Prepay for your electricity each month and top off your account as you go. Review the details of these plans:

• Six- or 12-month contract options
• Fixed rate
• No deposit
• No credit check
• $40 account balance minimum to start service

Best company for medium to large apartments: Gexa Energy

Gexa Energy is a popular choice for all home types, thanks to its competitive bill credit plans and 100% renewable electricity. If you live in a medium-sized or large apartment, consider these plans from Gexa:

• The Gexa Eco Saver Lite 12 plan is great for medium usage because it awards a $50 bill credit for just 500 kWh monthly usage. If you regularly use above 500 kWh, you’ll always get the discount.
• The Gexa Eco Saver Plus 12 is easily one of the best deals on our marketplace. When you hit 1,000 kWh usage, you’ll earn a $125 bill credit. This plan is probably best for larger apartments with multiple occupants. Review your past bills to determine if you regularly meet this usage.

How to choose the best energy company for your apartment

As you shop for an electric company for your apartment, keep these tips in mind:

• Prioritize a plan that aligns with your energy usage: Search for an energy plan with a low electric rate for your typical monthly usage. To get the most accurate estimate of your usage, check your past energy bills.
• Match your contract length to your rental lease: Find an energy plan that matches your lease length. For example, if you signed a two-year rental lease, consider a 24-month energy plan. This way, you don’t have to worry about renewing or canceling your energy plan while you rent.
• Evaluate which rate type best fits your lease: Fixed-rate plans offer the most stability and best pricing. Our experts recommend this type if you have a longer lease term. However, if you rent month-to-month, a variable-rate plan gives you more flexibility if you decide to move on short notice.

Call our energy experts at the number on this page for guidance if you need additional help determining if a plan is a good fit.

How bill credits impact energy costs

Bill credits are a common energy plan incentive that can lower your monthly electricity bill. However, it’s important to understand the terms of a bill credit plan to make sure it aligns with your energy habits.

With a bill credit plan, you only get the discount if you reach the required usage minimum. For example, if you use at least 1,000 kWh per month, you’ll get a $100 bill credit. If you don’t hit this usage requirement, you won’t get the credit and you’ll likely end up paying more.

Each bill credit plan has a different usage minimum and bill credit amount. Make sure to read the Electricity Facts Label (EFL) before enrolling in a plan to find out if it’s a good fit for you.

Apartment electricity FAQs

Does my power plan have to match my rental lease?

No, it doesn’t. However, if these line up, it could take some work off your plate. If your energy plan ends earlier than your lease, you’ll have to find another plan for the remaining months. To avoid extra work, try to match your energy contract with your lease.

What uses the most energy in an apartment?

Heating and cooling use the most electricity in an apartment, especially in states like Texas with more extreme weather conditions. Choosing an apartment with a programmable or smart thermostat can help you save energy and reduce bills.

How can I reduce my apartment’s energy costs?

Choosing an apartment complex with energy-efficient appliances, programmable thermostats, and updated insulation can reduce energy bills. You can also implement energy-saving habits like air-drying clothes, reducing hot water usage, and unplugging electronics when they’re not in use.

How can I find a cheap light plan for my apartment?

Enter your ZIP code on our marketplace and filter according to your home size. This filter lets you review plans that offer the best rates for your anticipated energy usage. If you have further questions, you can call our team of experts or use our AI shopping tool to get matched with the best plan for you.

What type of energy plan is best for an apartment?

Our experts recommend a fixed-rate energy plan for the most savings while living in an apartment. Fixed-rate plans typically come in 12- to 36-month increments. For peace of mind, try to find a plan aligned with the length of your lease.