How to Secure Cheap Electricity in Houston

Key Takeaways:

• Texas has a deregulated energy market, making it competitive among many retail electricity providers and giving you options.
• Finding cheap electricity in Houston requires finding the lowest rates, but you also need to consider other factors to ensure reliability and satisfaction.
• Regularly reviewing available energy plans and openness to channel providers is critical to maintaining the cheapest possible energy rates.

Managing household expenses is critical when maintaining a budget, and finding affordable electricity rates is a key way to keep these expenses low. Houston residents have various options to help keep their electricity costs in check. Below, we’ll explore strategies for finding cheap electricity in Houston and other ways to lower your monthly electricity bills.

What Are the Best Ways to Find Affordable Electricity Rates in Houston?

Whether you live in or plan to move to Houston, TX, you can take a few key steps to find cheap electricity in Houston. Let’s review the best avenues for finding the best electricity rates in Houston.

Online Search

First, you want to compare different electricity providers and find out which one offers the best overall electricity rates. A great resource for this is PowerToChoose.org, which allows you to enter your ZIP code and compare various providers’ plans.

When using this resource, keep in mind that finding the cheapest rates is only part of the process. You also want to consider other factors, such as:

• Contract length
• Contract terms
• Cancellation fees
• Additional benefits or incentives

When you find rates and other variables that meet your needs, it’s a great idea to go to the provider’s website to get additional details. For example, when you go to Just Energy’s website and perform a ZIP code search, you may find it has many more options than PowerToChoose shows and includes various specials and promotions that can further lower your electricity costs.

Family and Friends

Reaching out to friends, family, and neighbors in Houston can also be rather helpful. They can provide firsthand experience with the various energy providers and provide recommendations based on real-life rates and their overall satisfaction. The latter is also a very important factor, as finding cheap electricity in Houston is great, but if the customer service is poor, even the cheapest electricity can be disappointing.

Seasonal Promotions and Discounts

Monitoring the seasonal rates and promotions, such as bill credits for switching or free nights, is another great way to secure lower Houston electricity rates. Many electric companies offer promotions or discounts during off-peak times. If you can spot these trends, you may be able to lower your overall annual electricity expenses.

Are There Any Tips for Reducing Electricity Costs in Houston?

Even if you’ve already secured an affordable energy plan with the cheapest electricity rates, you can still take steps to further reduce your monthly bills. Let’s review some simple cost-cutting methods that can help reduce your monthly usage and energy bills.

Changing Your Habits

One simple way to save on electricity without changing energy companies is to practice energy-efficient habits. This includes simple lifestyle changes and tweaks, such as turning off lights and electronics when you leave a room, adjusting your thermostat to save on heating and cooling costs, and using natural light.

Changing Your Appliances

Replacing your old appliances with energy-efficient ones is a great way to save big on electricity. When replacing these older appliances, find ones with the Energy Star label, as this indicates it will function just as well or better than the appliances you’re replacing while consuming less energy.

You can also make other simple changes, including switching to LED light bulbs, which use at least 75% less energy than an incandescent bulb, and using power strips to easily turn off multiple devices. These small changes can significantly reduce your electricity usage.

Upgrading Your Home

You can also consider a range of home improvements to help reduce your electricity consumption. Some simple home upgrades that can contribute to lower energy usage and reduce your monthly bills over time include improving insulation, sealing air leaks, and investing in smart home technology.

Using Off-Peak Rates

Another effective way to lower electricity costs in Houston is to take advantage of time-of-use electricity plans. These Houston electricity plans offer lower rates during off-peak hours, potentially saving money if you adjust certain energy usage to these times.

For example, running major appliances such as dishwashers, washing machines, and dryers during off-peak hours can help you take advantage of lower electricity rates. Over time, this can reduce your overall monthly bill.

Find out why over half a million Texans trust Just Energy!

How Do I Compare Different Electricity Plans to Find the Most Affordable Option in Houston?

Use a site like PowerToChoose.org to find the electricity plans with the lowest overall per-kilowatt-hour (kWh) rates. However, be mindful of how many kWh you use monthly, as many rates decrease as your kWh usage increases. So, you’ll want to review your power bill to see how many kWh you use on average and use that number to make the comparison.

For example, if you use 3,000 kWh of power monthly and the energy plans in your area have tiered pricing at 500, 1,000, and 2,000 kWh, you’ll want to take your average monthly usage and apply the tiered pricing to determine which will save you more money overall.

Create a list of the top five to 10 energy providers by lowest monthly bill based on your average usage.

Remember that when comparing electricity plans in Houston, per-kWh pricing is only part of the equation. You also need to review and understand each option’s terms and conditions. Review the top providers you listed by cost and carefully review their contract length and any associated cancellation fees. Often, longer contracts offer lower rates initially, but they aren’t always ideal because they may charge a cancellation fee if you switch providers in the future to get better rates.

You also want to pay close attention to each electric company’s rate structure. Some providers will show you a substantially lower rate, but it may be a variable-rate plan that can eventually become a higher cost than a fixed-rate plan. Consider the savings of a variable-rate electricity plan with your financial risk tolerance if the rate spikes. If you fear you can’t support a potential rate hike, a higher fixed rate may be your best option.

While they have no financial ramifications, you also want to consider customer service and renewable energy applications. You want to weed out companies with poor customer service ratings. Also, you want to ensure your energy provider has a green energy plan if combating pollution and climate change is important to you.

What Are the Average Electricity Rates in Houston?

As of 2024, the average rate for electricity in Houston is 17.6 cents per kWh. However, keep in mind that this is just the average and your actual rates can vary. Some factors that can impact your electricity rates include your usage patterns, your service area, the time of year, and whether you’re on a month-to-month or long-term electricity contract. By implementing the tips above, you may be able to secure a lower rate.

What influences electricity rates in Houston? One significant driver is the source of energy generation. Texas has a broad energy mix that includes natural gas, coal, nuclear power, wind, and solar. The availability and cost of these energy sources can impact the overall electricity rates in the city. When it comes to fossil fuel sources, the cost of the necessary fuel impacts rates, too.

Market dynamics are also significant factors in electricity prices. Texas operates its electricity market independently, known as the Electric Reliability Council of Texas (ERCOT), keeping it mostly free from federal regulation and open to competition among many retail electric providers within the region. Because it’s a deregulated energy market, the electric companies are free to set lower and higher rates.

Live in Texas?
Learn more about Just Energy’s Texas Buyback program

Does Houston Have Demand-Based Electricity Plans to Help Save on Costs?

Yes, some Houston electricity providers offer time-of-use or peak/off-peak plans. These plans can help you save on energy costs by shifting your energy usage to non-peak hours.

Non-peak hours are when the demand on the Houston energy grid is at its lowest — typically in the evening. Peak hours, on the other hand, are during the daytime when electricity demand is highest. During non-peak hours, you’ll most likely get the lowest rates for electricity.

You can use these pricing setups to your advantage by shifting all your high-energy-consuming tasks to off-peak hours. Some ways to pull this off include running washing machines and dishwashers at night. You can also save charging devices and electric vehicles (EVs) for off-peak hours. Some electric vehicles even include a scheduling feature that allows you to plug in the vehicle, but it won’t start charging until you reach off-peak hours.

By focusing your highest demand on off-peak hours, you can take advantage of the lower rates and reduce your overall monthly bills.

Remember, using a time-of-use plan to reduce your energy bills requires you to closely monitor your energy needs and align them with the designated hours. However, with the right plan, the potential savings can make it well worth the time invested to change your daily routine.

What Are Some Common Mistakes When Trying to Find Cheap Electricity in Houston?

Finding cheap electricity in Houston is important for maintaining your budget, but avoiding common mistakes that increase your energy costs is crucial. Let’s review some of the common pitfalls so you can avoid them.

Signing Long-Term Contracts

One mistake to avoid is signing up for a long-term contract without reviewing the terms and early-termination fees. A great way to save on energy costs is having the flexibility to move between companies as rates change. With a contract that includes a long term length, you greatly limit your flexibility.

Not Regularly Reviewing Different Plans

A big mistake people make is getting comfortable with their energy provider and not regularly reviewing their plan compared to other providers’ energy plans, offers, and promotions. By staying up to date on the latest energy rates and comparing other energy options to your current electricity service, you can ensure you are getting the best deal possible.

Shopping by Price Only

It’s very easy to get lured in by a super low energy rate without checking other factors, such as customer service ratings. This could get you lower energy bills, but you may also get stuck in a contract with an unhelpful energy company. Always consider these more subjective factors when shopping for the best electricity plan.

It’s crucial to balance your focus on getting the best prices from the best electric companies in Houston.

Find Affordable Electricity in Houston

A significant portion of your monthly budget likely goes toward utility bills like water, sewage, natural gas, and electricity. Lowering the rates you pay for these necessary services allows you to free up your budget for other expenses.

Securing the best electricity plan in Houston requires smart comparison shopping, energy-efficient habits, and strategic usage. By taking advantage of online resources and being proactive, you can find an affordable plan that fits your needs and budget. Also, by reducing energy consumption, you’re reducing your carbon footprint.

Keep these tips in mind as you navigate the world of electricity providers and take control of your monthly expenses.

Brought to you by justenergy.com

All images licensed from Adobe Stock