Houston Energy Plans: Compare Electricity Rates and Providers

Houston Energy Plans: Compare Electricity Rates and Providers

Houston’s deregulated electricity market gives residents the freedom to shop for dozens of Houston electricity providers and energy plans instead of settling for a single utility-set price. Whether you live in a downtown high-rise, a Heights bungalow, or a five-bedroom in Katy, you can mix and match fixed-rate plans, variable rate plans, prepaid plans, or 100% renewable energy plans sourced from Texas wind and solar. Many providers, including Direct Energy and Green Mountain Energy, offer competitively priced plans with perks like bill credits or smart-home bundles.

Because Houston electricity rates fluctuate with wholesale fuel costs, weather, and energy demand, comparing electricity plans side-by-side can save hundreds on your electricity bill each year. Understanding the average Houston electricity rate, your household energy consumption in kilowatt hours, and usage patterns helps you select the best electricity plan for your home. Look for transparent terms, including early termination fees and hidden fees, and consider green energy options to lower your carbon footprint. Check each provider’s energy logo and plan details before deciding, and remember: you can always switch electricity providers to take advantage of cheap electricity rates or better Houston electricity plans.

Popular Cities Around Abilene: Katy | Sugar Land | Pearland | Pasadena | Baytown | The Woodlands

Energy Plans and Rates are shown for the Centerpoint Energy service area and were updated on October 29, 2025 at 5:00 AM. Pricing shown is based on an exact usage of 1,000kWh per month. Estimates are based on information provided to us by each Partner Company. Please visit the Energy Provider website, and confirm the estimates using the Electricity Facts Label and Terms of Service.

Houston Energy Costs and Electricity Rates: Tips for Residential Customers

Greater Houston’s humid‑subtropical climate brings brutal summers and pleasantly mild winters, which significantly impact electricity usage and energy costs for local residents. From June through September, afternoon heat indices often top 100 °F with 70%‑plus humidity, forcing Houston residents to run central air conditioners for up to 15 hours a day. Even well-insulated homes routinely exceed 2,000 kWh per month, making understanding Houston electricity rates and choosing the right energy plan essential to managing your electricity bill. During peak ERCOT summer days, air-conditioning alone can account for roughly half of the city’s electricity demand.

Winter is generally short and mild-highs in the 60s °F and lows in the 40s °F - but occasional blue-norther events can push temperatures below freezing overnight. Space heating is usually electric resistance- or heat-pump-based; electricity usage drops to 1,000–1,400 kWh in December and January. For residential customers in Houston, it’s critical to align your electricity plan whether a fixed-rate, variable-rate, or prepaid plan with your seasonal energy usage patterns rather than relying on advertised teaser rates.

By understanding average Houston electricity rates and monitoring your energy consumption, you can make informed decisions about which Houston electricity providers and green energy plans suit your household best. CenterPoint Energy, the city’s primary utility company, ensures reliable delivery, while retail electric providers compete to offer competitively priced electricity plans, including fixed rate electricity plans, renewable energy plans, and options with bill credits.

Houston Electricity Providers & How Deregulation Works

Texas opened its residential electricity market in 2002, and Houston has been a marquee example of consumer choice ever since. Here’s how it works:

• Retail Electric Providers (REPs): Private-sector companies like Gexa Energy, Reliant, and Frontier Utilities buy power on the wholesale market and compete for your business with fixed rate plans, variable rate plans, prepaid plans, and renewable energy plans. These competitively priced plans often include perks such as bill credits, smart-home bundles, and EV-friendly time-of-use options.

• CenterPoint Energy: The wires company for the Houston metro area, CenterPoint Energy, owns and maintains the transmission and distribution grid, restores power outages, and reads your smart meter. While CenterPoint Energy handles delivery, your chosen REP manages your electricity service, billing, and customer support. For questions about your plan or electricity rates in Houston, you contact your REP directly.

• Your Role: As a residential customer, you pick the best electricity plan that aligns with your energy usage, lifestyle, and budget. You can compare Houston electricity rates, evaluate electricity providers, and choose from green energy plans or renewable energy plans to reduce your carbon footprint. Switching providers is simple—you can switch electricity providers without penalty near the end of your contract, allowing you to take advantage of cheap electricity rates or the most cost-effective energy plan for your household.

Competition pressures providers to innovate with perks like smart‑home bundles, EV‑friendly time‑of‑use plans, and loyalty bill credits—none of which existed when a single vertically integrated utility set the price for everyone.

Energy Plans and Rates are shown for the Centerpoint Energy service area and were updated on November 3, 2025 at 4:20 AM. Pricing shown is based on an exact usage of 1,000kWh per month. Estimates are based on information provided to us by each Partner Company. Please visit the Energy Provider website, and confirm the estimates using the Electricity Facts Label and Terms of Service.

Types of Electricity Plans in Houston

Fixed‑Rate Electricity Plans

A fixed rate electricity plan locks your price per kilowatt hour for the duration of your contract—typically 12, 24, or 36 months—protecting you from summer price spikes and winter energy market fluctuations. For example, Gexa Energy’s Eco Saver Plus 12 holds at 11.1 ¢/kWh for a full year and includes a $100 bill credit for households hitting 1,000 kWh. Breaking the contract early may trigger an early termination fee, so it’s important to pick the best electricity plan that matches your household energy usage.

Variable‑Rate Electricity Plans

These month-to-month electricity plans fluctuate with the wholesale energy market, allowing Houston residents to cancel at any time. They can be bargains in low-demand months like April or October but may spike above 18–20 ¢/kWh during extreme heat waves. Variable rate plans are ideal for renters, short-term leases, or customers closely monitoring Houston electricity rates.

Prepaid / No‑Deposit Electricity Plans

Prepaid plans are perfect for renters, students, or anyone avoiding credit checks. Customers fund their account upfront, receive daily alerts on energy consumption, and can top up online. Plans like Payless Power’s SmarTricity Premier 6 have no contract and no deposit but slightly higher electricity rates in Houston than mainstream fixed rate plans.

Green Energy Plans

Houston is the Energy Capital of the World, but green energy plans and renewable energy plans are growing in popularity. For example, Chariot Energy’s GridEdge 36 costs 10.1 ¢/kWh for 100% solar-backed electricity, while Gexa Energy’s Eco series matches every kWh with Texas wind RECs. Houston residents who prioritize sustainability can lower their carbon footprint with these renewable energy plans, which usually carry a 0.5–1.5 ¢ premium over fossil-fuel mixes.

Time‑of‑Use & Solar Buyback

Time-of-Use electricity plans reward customers with lower rates during nights or weekends—ideal for running appliances or charging EVs off-peak. Solar Buyback programs credit rooftop solar owners for excess generation, with providers such as Rhythm Energy or Energy Texas paying up to $0.25 per exported kWh. These plans give Houston residents more control over electricity costs and energy consumption, while allowing them to benefit from the city’s deregulated energy market.

Electricity Rates & Contract Options in Houston

Short‑Term (3–6 Months): Flexibility reigns. If you’re between houses, finishing a lease, or betting rates will fall, a mini‑contract avoids big ETFs. Expect prices 1–2 ¢ higher than 12‑month offers.

Long‑Term (12–36 Months): Lock low while wholesale prices are soft. Imagine you’re on a 17 ¢ variable plan using 2,000 kWh/month. Switching to a 24‑month 11 ¢ fixed plan saves $120 the first month alone—more than covering a $60 ETF in just two billing cycles.

Pro tip: Texas law lets you switch your plan without penalty 14 days before the contract end date, so set a calendar reminder.

How to Choose the Best Electricity Plan in Houston and Reduce Your Energy Bill

Selecting the best electricity plan in Houston requires understanding your household energy usage and comparing Houston electricity rates from multiple electricity providers. Whether you prefer fixed rate plans or variable rate plans, aligning your choice with your energy demand and seasonal electricity usage can save you hundreds on your electricity bill.

For Houston residents, renewable energy plans and green energy plans are becoming increasingly popular, helping to reduce both your carbon footprint and energy costs. Providers like Gexa Energy, Direct Energy, and Green Mountain Energy offer competitively priced electricity plans with perks like bill credits, deferred payment plans, and time-of-use options.

To compare Houston electricity providers and find the cheapest electricity rates, start by entering your zip code online. Look at each plan’s average Houston electricity rate, contract length, and any hidden fees such as early termination fees. This ensures that your energy plan matches your household needs and allows you to switch electricity providers without penalties when better deals appear in the deregulated energy market.

Remember, carefully evaluating electricity prices, energy plans, and fixed rate electricity plans can make a real difference in your electricity bill and overall energy costs.

Final Tips: Save on Your Electricity Bill, Switch Houston Electric Companies

1. Pull last year’s bills. Note your true average—500 kWh apartments vs. 2,500 kWh five‑bedrooms—instead of picking the plan advertised at 1,000 kWh.

2. Shop shoulder seasons. April – May and October – November often feature the lowest fixed offers as demand dips.

3. Read every EFL. Look for minimum‑usage fees, base charges, and the real per‑kWh price at your consumption level.

4. Consider bill‑credit plans carefully. They’re cheap at 1,000–2,000 kWh but punishing below that tier.

5. Bundle wisely. Smart thermostats, HVAC tune‑ups, or free surge protection can add real value—if you would buy those services anyway.

Ready to pay less for power? [Enter your zip code to shop electricity rates.]