Best Electricity Rates in Texas 2026: How to Find the Lowest Price in Your Area
Texas has one of the most competitive electricity markets in the world. With over 100 retail electric providers (REPs) competing for your business, the right plan can save you $300–$600 per year.
Current Average Electricity Rates in Texas (2026)
| Plan Type | Average Rate |
|---|---|
| 12-month fixed | 11.2–13.5¢/kWh |
| 24-month fixed | 11.8–14.2¢/kWh |
| Month-to-month variable | 9–20¢/kWh (market-dependent) |
| 100% renewable fixed | 12.0–14.5¢/kWh |
Best Electricity Providers in Texas 2026
1. Gexa Energy
Consistently competitive fixed rates below 12¢/kWh on 12-month plans. Strong customer service. Best for: households looking for the lowest flat rate without gimmicks.
2. TXU Energy
Largest retail provider in Texas. Wide range of plan options including free nights and free weekends. Best for: high-usage households who want rewards and flexibility.
3. Green Mountain Energy
Texas’s original green energy provider. 100% renewable plans within 0.5–1¢/kWh of the cheapest options. Best for: households who want clean energy without a big premium.
Texas Rate Tips for 2026
Lock in before summer. Texas rates spike in Q2 as suppliers anticipate summer demand. The best time to lock in a 12 or 24-month rate is January–March. Always check the Electricity Facts Label (EFL) at your actual usage level before signing up.