How Does Business Electricity Work in Texas?
Homeowners and renters aren’t the only people in Texas that have to worry about finding a reliable electricity plan. No matter how big or small their corporations are, business owners also need to keep the lights on and the power flowing. Business electricity plans are very similar to residential ones but with a few subtle differences. Contact us at EnerGenie if you’re a new or long-time business owner in Texas to find the best rates on the market.
In this article, we’ll look at all the ins and outs of the world of business electricity rates and plans in Texas. With our help, you’ll be able to find the best plan for your commercial property regardless of how many employees you have.
What is Business Electricity?
You may qualify for a business electricity plan if you own a commercial property or run a business from home. The definition of business electricity is an electrical service that’s provided for businesses, schools, churches, and commercial properties. Basically, any type of building outside of a residential living area is deemed as a commercial property and needs a business electricity plan.
Do Businesses also Benefit from Deregulation?
If you’re new to the electricity world in Texas and don’t know where to get started finding a business electricity plan, you’ve come to the right place. The energy market in much of Texas is deregulated, so you can choose whichever company you prefer. However, this freedom of choice can be daunting, especially since there are over 120 companies to choose between.
Deregulation happened in the early 2000s and forever changed the scope of electricity in Texas. It affects over 85% of Texans, which means that nearly all residents and business owners have the power to choose their electricity plan and provider.
While the power to choose seems great at first, it can quickly turn into a mind-numbing headache. There are over 100 retail electric providers (REPs) in Texas, and many of them have between six and twenty electricity plans to choose from. Choosing the perfect plan and sifting through the hundreds of options at your disposal can take hours, if not days out of your time.
If you’re trying to run your business, spending days going through business electricity plans isn’t ideal. That’s time wasted that could be spent keeping your business afloat and making money. Contact us if you don’t feel like wasting time and would rather have an electricity expert choose your business electricity plan.
Business Electricity Rates in Texas
Overall, business electricity rates in Texas are usually a tad lower than residential ones. The main reason for this is that businesses use a lot more electricity than houses and apartments. However, while the price per kWh is often lower, companies use a lot more electricity than residential properties, which means the monthly bill will be much higher.
Texas’s current average business electricity rate is 8.04 cents/kWh, which is roughly two ¼ cents cheaper than the United States average. Here are some factors that will affect the price per kWh of your business electricity rate.
- The time of year
Electricity is seldom free, but there are times when the cost is higher or lower depending on the time of year. For the most part, electricity rates are higher for businesses in the summer months than at any other time of year.
- Your location
Where you live and operate your business within Texas will also impact how much you pay for electricity. While there’s usually not much fluctuation across the board, the Abilene area has lower rates than most of Texas.
- Hidden fees or rates
One of the biggest things to watch out for with energy plans is tiered rates and hidden fees. Tiered rates are pretty standard, and as long as you understand the stipulations of your plan, they’re not a big deal. However, they can quickly cost you big bucks if you don’t know how your rate works and use more electricity than you should.
Hidden fees are also typical of electricity plans, but EnerGenie will always find them. We’ll make sure you know exactly where your money is going and what it’s paying for.
- The cost of fuels and electricity production
One of the most significant factors that will impact your monthly electricity rate is how much it costs electricity generating companies to create electricity. The higher their cost is, the more you can expect to pay for electricity.
Different Types of Business Electricity Plans in Texas
Like residential plans, there are many different types of business electricity plans in Texas. You’ll typically have the option of a fixed-rate, variable-rate, or prepaid business plan. While these plans are standard across the board, certain companies have extra perks when you sign up for their business plan.
- Discounts based on use
Because many businesses are forced to use outlandish amounts of electricity monthly, certain REPs have discounts built into their plans where your rate decreases based on how much electricity you use. EnerGenie can find these discounts and help you benefit from them.
- Special business programs and discounts
There are often special programs and discounts available to business owners in Texas. Renewable energy plans are becoming extremely popular for businesses and are beneficial to everyone involved. You’ll be able to save money on your monthly utility bill and reduce your carbon footprint in the process.
- Utility write-offs
You can potentially write off part of your electricity cost when tax season comes around, especially if it’s from a renewable source. However, make sure to hire a reliable accountant so that you don’t get in trouble with the IRS.
How to Choose the Best Business Electricity Plan in Texas
Choosing the right business plan is a lot of work, and it’s an important decision. You could save yourself hundreds if not thousands of dollars a year by finding the right plan. Not only will EnerGenie find you the best plan, but we’ll also monitor it and make sure that your rates don’t go up.
EnerGenie is an electricity concierge company. We don’t benefit from signing you up with any specific REP, so you don’t have to worry about bias. Our only goal is to save you and your business as much money as possible. Contact us if you’re interested and want to know more about the process.
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