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Millions of Texans enjoy deregulated energy by choosing their power plan from a variety of competitive providers. But with so many options, finding the right one can be challenging. Choose Texas Power is an independent marketplace dedicated to helping Texans find the best energy plan. Review your options, consult expert-written resources, and sign up directly on our website.
This guide covers everything you need to know to find the best energy plans in Texas.
The best way to secure affordable energy bills is to pick a plan that matches your energy needs. Texas energy customers have several important decisions to make when picking an energy plan. Here are the main aspects to consider when you go energy shopping.
Your rate structure determines how you are charged for energy and is the first decision you should make. There are two main electricity rate types in Texas:
Fixed rate: Fixed-rate electricity plans have a set energy price for the duration of your contract. A fixed-rate plan is a good option for stability and protection from energy market fluctuations. Because these plans include a contract, you’ll pay an early termination fee (ETF) if you cancel before your plan expires.
Variable rate: A variable-rate electricity plan provides less stability than a fixed-rate plan, as the rate changes monthly with the wholesale cost of energy. Variable-rate plans are a great solution for consumers who want flexibility and prefer not to sign a contract.
Read our guide on fixed vs. variable rates to get a deeper understanding of these two options.
Fixed- and variable-rate plans are the first layer of energy plans. But you’ll find even more variety within these plans. Here are a few more types of energy plans or features that can fall within those initial categories.
Prepaid plans: Most energy plans require a credit check and deposit to start service, except for prepaid plans. This type of plan is best suited for someone with low credit or very minimal usage needs. Skip the deposit and credit check, and pay for your energy in advance. Explore these popular prepaid options from Payless Power:
Bill credit: Bill credits are often included on fixed-rate plans as a monthly discount for meeting a specific energy usage threshold. For example, your provider may offer a $100 credit if you use at least 1,000 kilowatt-hours (kWh) in a month. This usage amount is set in your contract and should not change. A bill credit plan is best for someone who knows their average consumption and can commit to a contract. Here are two of our energy experts’ favorite bill credit plans on our marketplace:
Time-of-use: This type of energy plan offers a different rate depending on the time of day. Some may even offer periods of free electricity, typically in the evenings. Your Electricity Facts Label (EFL) should clearly outline the terms of your time-of-use plan. Time-of-use plans are ideal for customers who use most of their electricity during off-peak hours.
Green energy: Most Texas energy plans include a specified amount of renewable energy from solar or wind power. However, some providers specialize in 100% green plans that cover your usage with renewable energy credits purchased on your behalf. Want to improve your carbon footprint? Review a couple of our top green energy plans:
Contract length is another important factor to consider when comparing energy plans. The ideal contract length depends on your budget, timeline, and preferences. Renters may choose shorter contracts that align with their lease, while homeowners may be comfortable committing to longer terms. Some providers offer unique term lengths like month-to-month or 6-month plans, but the most common contract lengths last 12, 24, or 36 months.
Ensuring your contract length is a good match also helps you avoid ETFs, which usually cost $150 to $395, depending on your provider’s policy.
Choosing the best energy plan in Texas is dependent on your energy needs, usage patterns, and goals. Answer a few of these questions to point yourself in the right direction.
Do you prefer stability or flexibility? If stability is your priority, opt for a fixed-rate plan. If you prefer flexibility, consider a variable-rate plan.
How long can you commit to an energy plan? If you’re not ready to commit to a contract, a month-to-month plan may be best. However, if you plan to live in your current home for a year or more, explore long-term plans that let you lock in a low rate.
Is your home’s carbon footprint a priority? Our marketplace features a variety of green energy plans. If green energy is important to you, consider one of our competitive renewable energy plans.
Do you tend to only use energy at night? If yes, a free nights and weekends plan could complement your schedule and help you save extra.
If you feel stuck between a few options, call our energy specialists for guidance. Our experts have years of industry experience and can help you find the best plan.
No one enjoys being surprised by a high electricity bill. This usually happens when customers are unaware of their plan’s different rate tiers and end up in the most expensive one. Review our experts’ tips for stable, predictable energy bills.
Fixed-rate plans are typically the cheapest options on our marketplace. This plan type gives you a steady rate and protection against price spikes.
Energy rates on our marketplace are transparent and include utility delivery fees. Your energy bill will also include local and state taxes. To avoid surprises down the road, carefully review your plan’s EFL for details on your rate, base charges, TDU fees, and more.
If your credit score is lower than the threshold set by a provider, you may have to pay a deposit to begin service. You won’t have to pay a deposit if your credit score exceeds the provider’s threshold or if you sign up for a no-deposit plan.
If you are late paying your energy bill, your provider may charge a late fee. Your service could also be disconnected if you are late multiple times or your account is past due for an extended period. Your provider should send you a notice before disconnecting your service.
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