December 2025 Summary
- •Cheapest rates: 9.2¢ - 10.5¢ per kWh (12-month fixed plans)
- •Average rate: 14.8¢ per kWh across all Texas plans
- •Potential savings: $300-500/year by switching to cheapest plan
- •Best time to lock in: December-March (before summer demand)
Texas's deregulated electricity market gives you the power to choose from over 40 retail electricity providers. With that many options, finding the absolute cheapest electricity plan can save you hundreds of dollars per year.
As of December 2025, the cheapest electricity rates in Texas range from 9.2¢ to 10.5¢ per kWh for 12-month fixed-rate plans at 1,000 kWh usage. However, the "cheapest" plan for you depends on your actual electricity usage, location (TDSP), and contract preferences.
This guide breaks down the cheapest electricity options by usage level, city, and plan type to help you find the lowest rates for your situation.
Cheapest Texas Electricity Rates (December 2025)
These are the lowest rates currently available across major Texas cities. Rates shown are for 12-month fixed-rate plans and include TDSP delivery charges.
| Usage Level | Lowest Rate | Monthly Bill | Annual Savings |
|---|---|---|---|
| 500 kWh/month | 10.8¢/kWh | $54 | $180/year vs 14¢ rate |
| 1,000 kWh/month | 9.2¢/kWh | $92 | $576/year vs 14¢ rate |
| 1,500 kWh/month | 9.7¢/kWh | $145.50 | $774/year vs 14¢ rate |
| 2,000 kWh/month | 10.1¢/kWh | $202 | $936/year vs 14¢ rate |
Note: The cheapest rate at 1,000 kWh may not be the cheapest at 2,000 kWh. Always check rates at YOUR actual usage level. Texas homes average 1,400-1,800 kWh/month.
Cheapest Electricity by City
Electricity rates vary by city because different areas are served by different TDSPs (transmission companies) with different delivery charges.
Houston Area
Dallas-Fort Worth
Austin Area
Corpus Christi
Cheapest Electricity by Plan Type
Fixed-Rate Plans (12 months)
Lock in your rate for a full year. Best for budget stability and protection against summer rate spikes.
Variable-Rate Plans (Month-to-Month)
No contract commitment. Rates fluctuate monthly based on wholesale electricity costs.
100% Renewable Energy Plans
Green energy from wind and solar. Often just 0.5¢-1¢/kWh more than non-renewable plans.
Watch Out for "Teaser Rates"
Some plans advertise extremely low rates (like 8.5¢/kWh) that only apply if you use EXACTLY 1,000 kWh. Use 999 or 1,001 kWh? The rate jumps to 18¢-22¢/kWh.
How to Avoid Getting Tricked:
- Always check the Electricity Facts Label (EFL) for rates at 500, 1,000, AND 2,000 kWh
- Avoid plans with "bill credits" that disappear if you use too much or too little
- Use our comparison tool which shows real rates at multiple usage levels
How to Find the Cheapest Electricity for YOUR Home
Step 1: Know Your Usage
Look at your last 3-6 months of electricity bills. What's your average monthly kWh usage?
Typical Texas usage:
- • Apartment (500-1,000 sq ft): 700-1,200 kWh/month
- • Small home (1,000-1,500 sq ft): 1,100-1,600 kWh/month
- • Medium home (1,500-2,500 sq ft): 1,400-2,000 kWh/month
- • Large home (2,500+ sq ft): 2,000-3,000 kWh/month
Step 2: Compare at Your Usage Level
Enter your ZIP code and actual usage into our comparison tool. Don't just compare at the advertised 1,000 kWh—that's a marketing number, not reality.
Step 3: Read the Fine Print
Check for early termination fees (typically $150-$300), auto-renewal clauses, and minimum usage requirements.
Best Time to Lock in Cheap Rates
Best Months to Switch
- •December-March: Lowest demand = competitive rates
- •April-May: Lock in before summer heat spikes demand
- •September-October: Post-summer competition
Avoid Switching During
- •July-August: Peak summer = highest rates
- •Winter storms: Wholesale prices spike temporarily
- •Mid-contract: You'll pay cancellation fees
Find Your Cheapest Electricity Rate
Compare rates from 40+ providers at your actual usage level. See the real cheapest option for your home.
Compare Rates NowFrequently Asked Questions
What's the absolute cheapest electricity rate in Texas right now?
As of December 2025, the cheapest rate is around 9.2¢/kWh for a 12-month fixed-rate plan in the Dallas-Fort Worth area (Oncor TDSP) at 1,000 kWh usage. However, the cheapest plan for YOU depends on your usage level and location.
Are the cheapest plans reliable?
Yes, cheap doesn't mean unreliable. Your electricity delivery is handled by your TDSP (Oncor, CenterPoint, etc.), not the retail provider. The provider just bills you and sources the electricity. However, check customer service reviews before choosing a very small provider.
How much can I save by switching to the cheapest plan?
The average Texas household uses 1,400 kWh/month. Switching from a 14¢/kWh plan to a 10¢/kWh plan saves $56/month or $672/year. Many households overpay by even more and can save $800-1,000+ annually.
Do cheap plans have hidden fees?
Some do. Watch for:
- •Early termination fees ($150-$300)
- •Bill credits that only work at exact usage levels
- •Minimum usage requirements
- •Auto-renewal at higher rates
Always read the Electricity Facts Label (EFL) before signing up.