Current Summary
- •Cheapest rate: 11.1¢ per kWh (12-month fixed plans, 1,000 kWh)
- •Average rate: 13.16¢ per kWh across 12-month fixed plans
- •Potential savings: switching from the average to the cheapest rate saves roughly $247/year at 1,000 kWh/month usage
- •Best time to lock in: spring (before summer demand) or fall (after summer demand eases)
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 July 2026, the cheapest electricity rate in Texas is around 11.1¢ 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 by Usage Level
These are the lowest 12-month fixed rates currently on file, excluding plans with minimum usage fees, time-of-use pricing, or bill-credit structures that can make a headline rate misleading.
| Usage Level | Lowest Rate | Monthly Bill |
|---|---|---|
| 500 kWh/month | 11.1¢/kWh | $56 |
| 1,000 kWh/month | 11.1¢/kWh | $111 |
| 2,000 kWh/month | 10.8¢/kWh | $216 |
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 (Deregulated Suburbs)
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 close to non-renewable plan pricing.
Watch Out for "Teaser Rates"
Some plans advertise extremely low rates that only apply if you use EXACTLY 1,000 kWh. Use 999 or 1,001 kWh? The rate can jump significantly — see our guide to minimum usage fees for exactly how this works. The figures on this page already exclude these plans.
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 July 2026, the cheapest rate is around 11.1¢/kWh for a 12-month fixed-rate plan 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 the current average rate (13.16¢/kWh) to the current cheapest rate (11.1¢/kWh) saves roughly $29/month, or about $346/year.
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.