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Is Your Houston Business Electricity Cost Exceeding Your Annual Budget?

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Compare and shop business electricity rates in Houston

These live rates for (TDSP) service area were updated on (May 27, 2020 at 8:05 AM CST). Pricing shown is based on an exact usage of 1000 kWh.


Each business has unique energy needs that call for different ways to buy and use electricity. If you are a Houston business, small organization, or other, it is time to look into the best low rate energy companies and choose the most affordable electricity plans for your business.

Perhaps you need simple energy solutions that you can just sign up and forget, or maybe you are looking for ways to optimize your energy expenditure. You may need robust electricity solutions that also reduce your carbon footprint.

Then, you should know that you don’t have to pay the increased rates that your energy supplier charges. Turn to Shop Texas Electricity to compare cheap energy plans and switch to the best electric company in Houston.

Cheap Business Electricity Plans

Shop Cheap Business Electricity Plans in Houston

Getting a reliable electricity supply is a top priority for every business. Whether to set the right ambiance for your employees and clients or for conditioning the rooms effectively for computers and data centers, you need dependable lighting solutions.

When price fluctuations occur in the Houston energy market, you can rely on us to provide you the most affordable business electricity rates. Find cheap electricity no deposit deals before the quotes expire or the prices rise again.

Enter your Houston Zip code, tell us a bit about your business needs, compare energy rates with our simple online tool, and know what is the cheapest electricity company in Texas.

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Commercial and Residential Electricity Rates

Why Do Houston Commercial and Residential Electricity Rates Differ

In any sector, power interruptions may mean loss of valuable business hours, decreased productivity, and equipment and machinery shutdowns. Having access to resilient commercial electricity is vital for the success and survival of any business.

While reliable energy solutions are also needed for Houston residential purposes, loss of power may not mean a risk to the survival of domestic environments. Likewise, you may have seen different rate plans for electricity for residential and commercial use.

The reason for this may be that Houston businesses require much higher volumes of units than average household usage. Since residential customers do not buy power in bulk, as the business owners do, the home electric rates are a bit higher of the two.

Energy Resilience Meaning

Energy Resilience Meaning in Commercial Electric Supply

Texas has seen some natural calamities like the heat wave in last year or the Hurricanes Harvey, Maria, and Irma over the years, which affected electric supply across the state. In such cases, ensuring energy resilience is the best way to preserve Houston business continuity.

Studies show that during 2012-2016, over 3.4 billion hours were lost when the electricity supply to the customers was cutoff; out of which, only 2,382 consumer hours were due to lack of fuel access to the power plants. However, over 96% of the causes were weather-related conditions, which disrupted the transmission lines and distribution equipment.

How Can Houston Businesses Have Energy Sustainability
Also, these circumstances do not affect only the regions on the coastal line, but the entire country gets affected. Moreover, business communities must not depend on utility companies to pull through during the power outages but prepare their contingency plans for resilient energy.

Having backup generators on-site, preparing for energy-related failures and power outages with an energy resilience strategy should be on your agenda. That being said, you can minimize such drastic conditions by enrolling with the most reliable energy provider in Houston that also offers great business electricity rates.

Shop Texas Electricity has a list of top-rated commercial electricity providers in Houston that offer cheap rate plans. Compare electric rates and the best low rate energy company in your Zip code today.

Domestic Vs Commercial Electricity

How Does Peak Demand Affect Houston Business Electricity Bills

The primary difference between commercial and residential electricity bills could be the frequent price fluctuations you see in the business energy market. Furthermore, domestic vs commercial electricity meters vary as the latter accounts for a variable called demand in addition to energy usage.

Electricity demand is the amount of power you need at a given point in time. Your TDUs (Transmission and Delivery Utility providers) have to know your peak demand so that they can be ready to supply that additional amount of electricity at a cost known as a demand charge. Commercial electricity bills have a demand charge besides the energy charge.

But two businesses in Houston with the same electric usage may get different energy bills. One may divide the entire power usage throughout the month, but the other operates all their equipment at a time, which results in higher demand charges and hence, a higher bill.

Peak Power Costs

How Vital Are Peak Demand Charges for Houston Businesses

Peak power costs (demand or peak demand charges) add up to 70% of the business energy bills. They usually show up as kW energy consumption on the TOU (Time of Use) Pricing document.

Time of Use Pricing

Before the Texas energy market deregulation, business customers were charged the same flat off-peak electricity rates, irrespective of the time of the day. But since 2002, energy companies have been charging more when customers use a higher amount of energy during peak hours.

Peak electricity demand time of day can be split into three periods:

Peak Hours: On-peak hours see the highest demand for power, and commercial electricity customers in Houston pay the highest rates per kWh. On weekdays, peak hours are from around 10:00 a.m. to 8:00 p.m.

Mid-Peak Hours: Relatively average demand for electricity can be seen from 10:00 a.m. to 8:00 p.m. on weekdays.

Off-Peak Hours: This is the period when the electricity rate is lower than the basic pricing. Since the energy consumption costs are the lowest, this is the best time to use as much energy as you need. From 9:00 p.m. to 7:00 a.m. on weekdays, on major holidays, and weekends, you can avail of off-peak hour rates.

How to Avoid the Extra Costs on Peak Demand Charges

  1. The best time to use electricity to save money is after regular business hours. If you have flexible work hours, run your high-demand equipment during the off-peak hours when there is less overall electricity usage.
  2. Instead of incandescent bulbs for indoor lighting, use high-efficient LEDs to get significantly lower energy bills.
  3. Run your temperature controlling devices and appliances in turns as they need more electricity, and switching them all at once results in high power demand.

Cheap Business Electricity Rates

Need for Cheap Business Electricity Rates in Houston

2019 witnessed a scorching summer in Texas that affected commercial and industrial customers who consume around 44% of the total power load in the state. Houston businesses do not pay a flat energy rate, which means the bill is calculated on their power consumption during peak times. Summers, being the peak demand periods of a year, bring about high electricity costs.

Last year, when the Texas power grid recorded the highest peak demand, a few sophisticated electricity consumers and owners of large enterprises analyzed weather forecasts and electricity usage patterns to cut down on power consumption. Per reports, they reduced their bills without any production losses by shutting down their operations during the peak summer demand period; ultimately, that burden went to the home and small business electricity rates.

While there are predictions about electricity rates coming down this year because of the increased and confident 2020 reserve margin from ERCOT, this summer looks to be no different. Business owners like you must make haste and find low rate energy companies in Houston before peak demand season hits.

Enter your Zip code into our simple tool and find cheap commercial electricity providers.

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Costs of Commercial Electricity

Hidden Costs of Commercial Electricity in Houston

While many informational websites provide the list of the best business electricity providers in Houston, not all plans are the same. You must do your due diligence before choosing a cheap rate plan.

First, consider if any hidden costs may add up to your bills. These could be:

How to Choose Business

Understanding Your Houston Business Plan’s EFL (Electricity Facts Label) Document

Terms of Service
Terms of Service

Make sure you understand all the terms and conditions or call the energy supplier to specifically spell them out for you.

Contract Terms
Contract Terms

Ask the provider if you will face reconnect/disconnect charges or early termination fees. How long does the Houston electric company charge you a specified fixed rate?

Power Sources
Power Sources

Find out how much of the energy supplied comes from renewable sources. You can use your power to choose business electricity to promote green channels by looking for sustainable commercial energy plans.

Electricity Rate
Electricity Rate

Average electric price per kilowatt-hour of usage will be mentioned in the EFL document. Choose the commercial electricity plan that fits your annual usage or some providers even offer customized rate plans for Houston businesses.

How to Shop for Electricity in Texas

What Sets Shop Texas Electricity Apart?

Look no further to learn how to shop for electricity in Texas.

With Shop Texas Electricity, you can:

Sign up with the best electric company in Houston in two easy steps: enter Zip code, compare and shop cheap commercial energy rates.


Average usage and prices vary by customer and TDSP and are subject to change.