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An important aspect of energy plan shopping is the contract length, which is how long you’re committed to a plan. For example, fixed-rate plans lock in your rate for a guaranteed term, usually 12–36 months. Another option is a variable-rate plan, which operates month-to-month and allows you to cancel at any time without penalty. In deregulated energy markets, the choice is in your hands. Customers benefit from selecting the ideal plan length for their living situation and energy needs.
We dug into two years of our marketplace data to find out which contract lengths our customers prefer. According to our findings, 12-month energy plans are the most common contract length ordered on our marketplace. Find out how popular various plan lengths are among our Texas shoppers.
According to our data, 12-month plans are the most popular among our shoppers. A one-year commitment is short enough for renters, but still appeals to homeowners who want stability. If you’re on the fence, a 12-month plan balances affordability and protection from energy market fluctuations. An added bonus: 12-month plans are the most abundant plan on our marketplace, giving you maximum options.
The second most popular contract length on our marketplace is 24 months. If you want long-term value, two-year plans are the sweet spot between affordability and commitment. Many of our 24-month plans have low rates and offer even more security because you can avoid an increased renewal rate for longer. This option is great for homeowners who value peace of mind.
On the other side, the least popular plans fall between 13 and 21 months. This likely comes down to limited supply, fewer incentives, and higher costs. Mid-length contracts are not the most competitively priced and tend to lack unique plan features. Less variety and higher costs deter shoppers from this category and push them towards more popular and valuable term lengths.
Your contract length is one of the most important decisions because it determines how long you are committed to your plan and whether you’ll pay an early termination fee (ETF). Month-to-month plans have no penalty for canceling, whereas longer plans have varying penalties depending on your provider and contract length. To avoid paying unnecessary fees, pick a term you can reasonably commit to.
If you are interested in a certain plan length, our marketplace data shows which energy providers are most popular. Uncover which providers win for certain contract lengths and get our take on plans we recommend.
Enter your ZIP code on our marketplace to shop these plans and countless other energy solutions in Texas.
Still unsure which contract length is right for you? Explore our expert recommendations on which lengths are best for different lifestyles and energy needs.
Unsurprisingly, 12-month plans are the most popular contract length on our marketplace. This term delivers the most value for customers thanks to more options and competitive rates. It’s also a convenient time frame for both renters and homeowners.
If you want to secure an affordable energy plan without too much commitment, go for a 12-month contract. Many of these plans also offer bill credits, which can help you find extra savings if the usage requirements match your typical monthly consumption. Review the Electricity Facts Label (EFL) to determine if a bill credit plan complements your lifestyle.
Month-to-month plans can be advantageous for those in a transition period. If you have a move coming up, a short-term plan gives you maximum flexibility because you can cancel at any time without penalty.
Our experts also recommend this contract length if you shop during peak seasons, like summer or winter, when prices may spike. Recalibrate when you’ll be up to renew your plan by waiting out the expensive season until prices drop. Then, switch to a more affordable power plan during a cheaper month.
While committing to a long-term contract may seem daunting, it could be a great option for homeowners who intend to live in their homes for a while. Longer contracts typically provide favorable rates, protection from market spikes, and peace of mind. The longer your plan, the more time you have to avoid an expensive new renewal rate.
Our experts’ advice: Shop for long-term plans during fall and spring, when prices are likely to drop. That way, you can secure a low rate that lasts multiple years.
There are a few scenarios when certain contract lengths don’t make sense. Long-term contracts are not ideal for everyone, especially those uncertain about their living situation. Long contracts can come with ETFs as high as $350, so it’s important to be sure you can commit to your plan. If your situation is in flux, a short-term contract could give you more flexibility and lower fees, even if it comes with a higher rate.
In contrast, month-to-month plans aren’t a good long-term solution for homeowners or those locked into a rental lease. They can have volatile rates that shift monthly with the energy market. Spring for a longer contract, such as a one-year plan, that matches the minimum commitment you can make.
Ultimately, the right contract length depends on your lifestyle, future plans, and typical energy usage. Our data shows that 12-month plans are the most popular option for the majority of Texans. However, one size doesn’t fit all. Consider which term length complements your energy needs to narrow down your options. Our marketplace filters can tailor results to your preferences. Enter your ZIP code or call the number on your screen to find your ideal match.
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