Best Electricity Plans for All-Electric Homes (No Gas) in 2026

If your home runs entirely on electricity — no gas furnace, no gas water heater, no gas range — your annual electric bill is roughly 2-3x what a mixed-fuel home pays, and your plan choice matters proportionally more. The same supplier offering identical rates to two homes can cost an all-electric household $400-$900 more per year than the optimal plan would. This guide covers what to look for, which plan structures fit all-electric usage best, and the specific gotchas that wreck the budgets of new all-electric homeowners.

How Much Electricity an All-Electric Home Actually Uses

The US Energy Information Administration’s most recent residential survey puts average all-electric home usage at roughly 13,500 kWh per year — versus about 6,800 kWh for a home that uses natural gas for heating, water heating, and cooking. The gap is largest in heating-dominant climates: an all-electric home with a resistance furnace or electric baseboard in Maine or New Hampshire can hit 20,000-30,000 kWh annually. A heat-pump-equipped all-electric home in the same climate uses 11,000-16,000 kWh.

The practical upshot: all-electric households have winter bills 3-5x their summer bills (in cold climates) or summer bills 2-3x their winter bills (in cooling-dominant climates). Most rate-shopping advice assumes the relatively flat usage of a mixed-fuel home and breaks down for all-electric.

The Best Plan Structure for All-Electric Homes

Three plan structures dominate the deregulated market: flat-rate, tiered, and time-of-use (TOU). For all-electric homes, the ranking is usually:

1. Flat-rate fixed-price (best default)

A single price per kWh for all usage, locked for a contract term of 12-36 months. The simplest structure to compare, and the predictability matters more for all-electric homes where one bad month can blow the budget. Look for plans without a minimum-usage fee or with a low minimum (under 1,000 kWh/month) — many all-electric homes routinely use over 1,500 kWh and won’t trigger penalties.

2. Time-of-use (best for solar + heat pump homes)

If you have rooftop solar with battery, or an EV charging overnight, or a heat pump with smart thermostat that can pre-cool/pre-heat — TOU plans can save 15-30% versus flat-rate. The math only works if you actively shift load. If you can’t or won’t, TOU costs more.

3. Tiered (worst for high-usage all-electric)

Tiered plans price the first X kWh at one rate and everything above at a higher rate. The tier cutoff is usually set assuming average residential usage. All-electric homes routinely punch through the cutoff and pay the elevated rate on most of their kWh. Avoid tiered structures unless the tier-2 price is barely higher than tier-1.

The Bill Credit Trap

In Texas especially, many advertised low-rate plans are “bill credit” structures: a high underlying kWh rate offset by a fixed credit at certain usage thresholds (typically 1,000, 1,500, or 2,000 kWh). Hit the threshold, get the credit, pay an effectively low rate. Miss the threshold by even 1 kWh, pay the full unsubsidized rate.

For an all-electric home, the typical pattern is: smash through every threshold in winter and summer, but barely use any electricity in mild shoulder months. A 1,000-kWh credit plan can save you serious money in peak months and then sock you with bills 50-80% higher than expected in April and October. The fix is to either choose a no-credit flat-rate plan, or choose a credit threshold low enough (typically 500 kWh) that you hit it every month.

Term Length and the Volatility Problem

All-electric homes are especially exposed to wholesale price spikes because they have no fuel substitution (you can’t turn off the heat in February and burn firewood without major retrofits). For this reason, longer-term fixed contracts are usually worth the small premium. A 24-month fixed beats a 12-month fixed for most all-electric homes — and a 36-month fixed in PJM/ISO-NE territory can be a strong hedge before a forecasted price-spike year.

Variable-rate plans are the wrong choice for all-electric homes in every climate. The dollar value of one bad month at a $0.30/kWh variable rate on 2,500 kWh of usage ($750 in a single bill) is enough by itself to swamp a year of savings versus a fixed plan.

What Else Matters

Renewable content

Many suppliers offer 100% renewable plans at $0.001-$0.005/kWh premium over conventional. On 13,500 kWh that’s $13-$67/year — usually a small price for the environmental claim, but make sure you understand the difference between RECs (purchased certificates) and direct renewable supply. RECs are legitimate but more abstract.

Cancellation fees

Standard early termination fees range from $100-$300 flat or $20/month remaining. Anything above $20/month is aggressive. Avoid suppliers with multi-thousand-dollar ETFs — they tend to also have rate-increase clauses you don’t want to be locked into.

Auto-renewal terms

Some suppliers auto-renew at variable rates 50-100% above the original contract. Calendar your renewal date the day you sign. Switching at end of contract typically saves $200-$500/year over auto-renewal.

Heat Pump Considerations

If you have or are installing a cold-climate heat pump, your annual kWh will drop 30-50% versus electric resistance heat — but your peak winter demand may actually increase (a heat pump pulls hard when temperatures drop below its balance point). If your utility has a demand charge for residential customers, or if you’re on a TOU plan, the peak-hour rate matters more than the average kWh rate. Look for plans that price off-peak hours cheaply, since most heat pump operation can be shifted with a smart thermostat.

FAQ

Are all-electric homes more expensive to operate than gas?

It depends on the appliance efficiency and local rates. An all-electric home with heat pumps and a heat pump water heater is often cheaper to run than a gas-heated home, especially as gas rates rise. An all-electric home with resistance heat and a resistance water heater is usually significantly more expensive than gas equivalents.

Should I switch to natural gas if it’s available?

The energy-cost question depends heavily on local rates and which appliances you’d switch. Heat pumps now beat gas furnaces on operating cost in most US markets when properly sized. Water heaters and ranges are more often a wash. Factor in the connection fee, line install cost, and any monthly customer charge.

What kWh rate should I target for an all-electric home?

It varies by state. Texas all-electric homes targeting 1,500+ kWh/month should aim under $0.12/kWh average all-in. PJM states (PA, OH, MD, NJ): under $0.10/kWh supply portion. New England (CT, MA, ME, NH): under $0.16/kWh supply portion is realistic; under $0.13 is aggressive.

Do “free nights” plans work for all-electric?

If you can shift major loads to overnight (EV charging, dishwasher, laundry, pool pump, water heater on timer), free-nights plans can cut bills 20-30%. If you can’t shift much, the elevated daytime rate makes them more expensive than flat-rate.

How do I know if I’m overpaying?

Take your most recent bill, divide total dollars by kWh used. That’s your all-in rate. Compare against the lowest available fixed-rate plan in your ZIP. Anything more than $0.02/kWh above the market low means you’re overpaying by $200-$400 a year on typical all-electric usage. Time to shop.

All-electric homes are the highest-impact rate shoppers in the residential market. A 15% lower rate translates to $300-$700 a year — enough to pay for a smart thermostat, a heat pump tune-up, or a single bill spike during the next polar vortex.