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Updated December 22, 2024
Best time to beat the expensive rates is in the spring and fall.
Summer and the winter are the most expensive as demand is the highest.
The cheapest electricity rate at 1,000 kWh in Houston
Estimated using the cheapest rate multiplied by 1,000 kWh
Using Gatby’s electricity marketplace, we determined that the lowest rate in December for homeowners was 13.77 cents per kilowatt-hour for usage of 1,000 kWh, which is the standard home size. If you are looking for cheap electricity plans in Houston, see below for different options. Note that unlike the stable plan table of rates further down, the plans below include bill credit and time-of-use plans so you will want to make sure your home electricity usage lines up with the plan so you don’t have any surprise bills.
Please note: All rates above are accurate as of 12/22/2024 for ZIP Codes 77093, 77014, 77026, 77060, 77009, 77067, 77038, 77037, 77016, 77020, 77029, 77076, 77028, 77039, 77050, 77078, 77022, 77032, 77088, 77066, 77056, 77070, 77057, 77006, 77069, 77063, 77064, 77024, 77091, 77092, 77040, 77008, 77018, 77090, 77065, 77095, 77084, 77041, 77079, 77055, 77080, 77099, 77035, 77071, 77025, 77007, 77031, 77043, 77042, 77068, 77005, 77086, 77027, 77098, 77030, 77077, 77085, 77033, 77021, 77053, 77048, 77082, 77054, 77051, 77074, 77096, 77072, 77036, 77062, 77058, 77073, 77004, 77089, 77012, 77034, 77017, 77075, 77061, 77011, 77003, 77002, 77083, 77059, 77087, 77081, 77023, 77045, 77047, 77019, 77094, 77044, 77013, 77046, 77015, 77049, 77010, 77545, 77449, 77581, 77584, 77546. Rates may have changed since this date. For the most up to date rates in your area, please enter your address above.
Your rate is the amount you pay per unit of electricity you use. Your electricity rate will be measured in kilowatt-hours (kWh). To calculate your electricity bill, you'll multiply your rate by your usage. For example, if you're on a fixed-rate electricity plan that charges 6¢ per kWh and you use 1,000 kWh in a month, you would calculate your supply charges like this: $0.06 per kWh X 1,000 kWh =$60
Your rate is the amount you pay per unit of electricity you use. Your electricity rate will be measured in kilowatt-hours (kWh). To calculate your electricity bill, you'll multiply your rate by your usage. For example, if you're on a fixed-rate electricity plan that charges 6¢ per kWh and you use 1,000 kWh in a month, you would calculate your supply charges like this: $0.06 per kWh X 1,000 kWh =$60
If you’ve ever wondered how much electricity should cost for your household, you’re in good company. Different plans make sense for different people depending on the size of their home and their monthly usage. Here are the best electricity plans in Houston depending on how much electricity you expect to use:
Apartment
< 1000 sqft
500 kWh
Discount Power - Bill Credit Bundle 12
21.8 ¢
Constellation Energy - 12 Month Usage Bill Credit
17.6 ¢
Rhythm Energy - Simply Select 6
14.2 ¢
APG&E Energy - True Classic 6
14.4 ¢
Veteran Energy - Simple 36
15.6 ¢
Ohm Connect - Half-price Nights 24
15.7 ¢
Champion Energy - Champ Silver-24
15.7 ¢
Frontier Utilities - Frontier Budget Saver 12
16.1 ¢
Gexa Energy - Gexa Budget Saver 12
16.4 ¢
Direct Energy - Live Brighter 1K+ 24
18.2 ¢
Small Home
1000 - 2000 sqft
1,000 kWh
Discount Power - Bill Credit Bundle 12
11.4 ¢
Constellation Energy - 12 Month Usage Bill Credit
13.6 ¢
Rhythm Energy - Simply Select 6
13.8 ¢
APG&E Energy - True Classic 6
13.9 ¢
Veteran Energy - Simple 36
15.1 ¢
Ohm Connect - Half-price Nights 24
15.2 ¢
Champion Energy - Champ Silver-24
15.3 ¢
Frontier Utilities - Frontier Budget Saver 12
15.7 ¢
Gexa Energy - Gexa Budget Saver 12
16.0 ¢
Direct Energy - Live Brighter 1K+ 24
16.8 ¢
Large Home
2000+ sqft
2,000 kWh
Discount Power - Bill Credit Bundle 12
16.1 ¢
Constellation Energy - 12 Month Usage Bill Credit
14.4 ¢
Rhythm Energy - Simply Select 6
13.6 ¢
APG&E Energy - True Classic 6
13.7 ¢
Veteran Energy - Simple 36
14.9 ¢
Ohm Connect - Half-price Nights 24
15.0 ¢
Champion Energy - Champ Silver-24
15.1 ¢
Frontier Utilities - Frontier Budget Saver 12
15.4 ¢
Gexa Energy - Gexa Budget Saver 12
15.7 ¢
Direct Energy - Live Brighter 1K+ 24
15.5 ¢
A kilowatt hour (kWh) is a unit of measurement that details how much energy you use over time. Electric companies charge you based on your energy rate multiplied by the number of kilowatt-hours used. That’s why you’ll see Houston’s average energy rate stated as 15.35¢/kWh.
A kilowatt hour (kWh) is a unit of measurement that details how much energy you use over time. Electric companies charge you based on your energy rate multiplied by the number of kilowatt-hours used. That’s why you’ll see Houston’s average energy rate stated as 15.35¢/kWh.
As you compare available plans in Houston, you’ll find multiple plan types, such as:
Fixed-rate plans: With fixed-rate plans, you'll be paying the same rate for every kilowatt-hour of power you use during your electricity contract. It's a straightforward and predictable way to manage your energy costs. Contracts usually range from one to three years. So, here's the deal: if you decide to cancel your plan before your contract is up, you might end up having to pay something called an early termination fee (ETF). One great thing about fixed-rate plans is that the price you pay for energy stays the same, which means you don't have to worry about sudden increases in the market.
Variable-rate plans: Variable-rate plans work by adjusting your monthly electricity rate according to the current wholesale electric prices. This means that your rate can go up or down depending on the market conditions. You don't need to sign a contract for this plan type. You can easily switch electric plans in Houston whenever you want. Just so you know, with variable-rate plans, the cost of electricity can go up during times when there's a high demand for it. This is because when demand is high, the wholesale cost of electricity also increases.
Renewable energy plans: Every electricity plan you come across in Texas will include a certain percentage of green energy. Pretty cool, right? It can differ depending on the company and the specific package you choose. There are certain electricity providers, such as Rhythm, Ohm Connect, and Champion that only offer green energy plans. This means that all the electricity they provide comes from renewable sources, which is great for the environment.
No deposit plans: Before providing service to a residence or place of business, certain Houston-based electricity providers demand a deposit. If you want to skip the hassle of paying a deposit, you can check out electricity companies in that offer no-deposit plans, like prepaid options. With prepaid plans, you can pay for your electricity ahead of time and easily add more funds to your account whenever you need to. They are also useful for consumers that don’t have a social security number.
Time-of-use plans: Time-of-use plans are a type of electricity plan where customers have rates that change depending on when they use electricity. So, if you're enrolled in a time-of-use plan, the rates you pay for electricity will vary depending on the time of day you use it. It's like having different prices for electricity during different times of the day. If you plan your activities during off-peak times, like late nights, weekends, and holidays, you can score lower rates. But here's the thing: if you happen to use a ton of energy during the daytime and on weekdays, you might end up paying higher rates.
Since time of use and bill credit plans have the cheapest prices, does that really mean you'll have the lowest energy bills? It's kind of a mixed bag. Some of the lowest rates come with bill credits or specific usage times that may not work for everyone in Houston. Following strict usage times or meeting specific kilowatt-hour requirements might save you money, but they could also lead to unexpectedly high bills if you don't meet those conditions.
Since time of use and bill credit plans have the cheapest prices, does that really mean you'll have the lowest energy bills? It's kind of a mixed bag. Some of the lowest rates come with bill credits or specific usage times that may not work for everyone in Houston. Following strict usage times or meeting specific kilowatt-hour requirements might save you money, but they could also lead to unexpectedly high bills if you don't meet those conditions.
Bill credit plans are designed to provide credits on your monthly energy bill if your energy usage falls within a specified range. These plans are promoted as offering low rates specifically forHouston homes. However, it's important to note that they can potentially result in unexpectedly high bills if your energy consumption does not align with the specific bill credit requirements.
Looking for the best electricity plan in Houston? Take advantage of Texas's deregulated energy market and choose Gatby to easily compare electricity providers and find the right plan for you. Enter your address to get started and explore your options today.
Your local utility is responsible for transmitting, connecting and disconnecting electricity to your home and reading and maintaining your home's electric meter. The utility also maintains the lines and other equipment used to transmit electricity.
While you have a choice in who you buy electricity from, you cannot choose the company that transmits and delivers electricity to your home.
If you live in Houston, there's a good chance that Centerpoint is your utility company.
With Gatby, switching electricity providers has never been easier. Enjoy the convenience and savings with these simple steps:
It is easy to sign up for an electricity plan in Houston whether you are moving here or switching plans for a cheaper rate. If you use Gatby we’ll handle all aspects of the switch and and make sure that the provider doesn’t charge you an early termination fee if you’re moving. That said see some tips below if you want to do it yourself.
Need lights on before your move? If you’re moveing to a new home in Houston, see below for some Gatby tips.
Even if you're not planning on moving, it can be highly advantageous to reassess and potentially switch energy providers. The Texas energy market is incredibly unpredictable, leading to significant and frequent price variations. As a result, a rate that initially seemed favorable may no longer be so attractive.
Surprisingly, many residents of Houston do not regularly explore alternative energy providers, despite the potential for cost savings. Changing to a different provider is a great strategy for Texans to potentially reduce their energy expenses. The key lies in selecting the most suitable plan and provider to meet your specific electricity requirements.
Additionally, securing a low electricity rate now can offer protection against potential future rate hikes. If your current energy contract is approaching its end, it's advisable to review your energy rate and compare it with the current prices offered by other suppliers. You might find that your current electric company now offers more competitive rates than when you originally signed up.
Here are some essential things to think about when choosing an energy plan for your home:
It's essential to know how much electricity you use every month, the size of your home, and how your heating and cooling costs affect your electricity use in different seasons. You can check your old electricity bills to find this information. Knowing your electricity needs is crucial because your electricity bill is based on how much power you consume, and not every plan calculates different levels of electricity use in the same way. For example, some plans may offer discounts that apply after the first 1,500 kWh. If you only use 1,000 kWh per month, you won't save money. Similarly, if you have a large home and use over 2,000 kWh every month, a plan intended for a small apartment might result in a high bill.
Electricity service is available in several contract lengths, such as month-to-month, 6-month, 12-month, 18-month, 24-month, and 36-month terms, and sometimes even longer. Consider your needs and plans when choosing a contract length. If you own your home and don't plan on moving, you might benefit from lower rates offered by a longer contract. However, if your needs only extend six months, you don't want to sign a more extended contract and end up paying early termination fees.
If using renewable energy is a priority for you, you can sign up for a plan from a provider that offers clean, green energy. Read the plan details carefully to ensure the fine print matches the headlines.
When shopping for electricity plans, you'll come across fixed-rate and variable-rate contracts. Fixed rates remain the same regardless of external factors, while variable rates may change based on different conditions. Consider your lifestyle and electricity usage to determine if a fixed-rate or variable-rate plan suits you best.
It's super important to understand the Electricity Facts Label (EFL) to avoid any unexpected charges on your alectricity bill. The EFL contains crucial details about your electricity plan, such as contract length, use of renewable resources, billing specifics, and potential fees. Before you sign up for a plan, make sure to carefully review the EFL to fully understand the terms. Pay close attention to the early termination fee, as it could end up costing you a lot. If you have any questions, reach out to the company's customer support for clarification. Also, keep track of when your electricity plan expires so you have enough time to find a new plan before the current one ends or automatically renews without you realizing.
As of December 22, 2024 the average Houston electricity rate of 15.35 cents per kilowatt hour at 1,000 kWh.