Commercial Electric Rates
If you are a business owner and haven’t shopped for business electricity rates in a while, now is the right time. Cheap business electricity and high energy usage translate to high energy costs. These costs can make you less attractive in the market and can increase the price of your products and services. For this reason, occasionally revising your business electricity rates ensures that you pay the least amount for your electricity service and that your business electricity powers you on your way to expanding.
Commercial Electricity Rates
As comparing commercial electricity rates can be difficult and finding the best energy supplier even more so, we’ve decided to help. We did a bit of research to find out how to save on your electricity bill in the competitive market. Here are the top five commercial electricity plans offered by energy suppliers to large and small businesses:
|Energy Provider||Contract Term||Commercial Electricity Rate|
|Entrust Energy||36 months||$0.0433 per kWh|
|V247 Power||36 months||$0.0435 per kWh|
|Green Mountain energy||36 months||$0.0435 per kWh|
|Champion Energy||36 months||$0.0450 per kWh|
|TriEagle Energy||18 months||$0.0451 per kWh|
Top Commercial Electricity Suppliers
A commercial electricity supplier is any company that buys electricity on the wholesale market and resells it, usually at a low markup, to commercial customers. An electricity supplier is also known as a retail energy supplier, a power provider, or just provider, for short. These companies offer electricity in the form of variable and fixed plans and are not to be confused with electric utilities – companies that ensure a stable and reliable electric service.
APG&E is a Texas-based retail energy provider. It offers some of the best energy rates in the state and also services customers in New York, Ohio, Pennsylvania, Maryland, and New Jersey. It offers paperless billing, an online payment portal, and great fixed-rate plans.
Direct Energy is one of North America’s largest energy suppliers. It operates in 47 states, where it offers online tracking tools, smart home energy products, and green energy options. Free electricity plans, giving back in your name, a military discount, and a refer-a-friend program are just some of the perks that Direct Energy offers.
Engie is an international company and one of the world’s leaders in green energy. Providing clean electricity to its industrial, commercial, and residential customers, it is also one of the biggest in the US.
Green Mountain Energy
Green Mountain Energy is a Vermont-based energy supplier. The company was founded in 1997, and it still stands strong with 25 years of experience. It believes in the power of renewable energy, so this is the only type of energy they source. Its pollution-free programs and renewable buy-back plans for solar panel owners make it the greenest energy supplier out there.
Hudson Energy is an electricity, natural gas, and green energy supplier based in Texas. It provides its residential and commercial energy consumers with choices and energy partnerships to help save on utilities and make your business thrive.
TexPo is a Texas-based commercial energy supplier that offers affordable energy rates to both commercial and residential customers. TexPo Energy works in the deregulated part of Texas, and they offer to incentivize commercial energy rates.
TriEagle Energy is a Texas-based energy supplier. It has been in the business since 2002 and so far has offered simple energy plans with no hidden costs. Weekly usage reports, PrimeTime, and a referral program make it one of the best choices in ZIP code areas where it works.
Types of Commercial Energy Plans
Business electricity suppliers offer commercial energy plans that are similar (but not the same) as residential electricity plans. This means that the plans include fixed-rate electricity plans and variable-rate electricity plans at the top tier. Some commercial energy suppliers may also offer green energy options, energy efficiency programs, and energy audits of your building free of charge for as long as you are their customer. Let’s read on to learn more:
A fixed-rate plan is an electricity plan that can help you save money in the long run. Namely, the price you business consumers pay with a fixed-rate electricity plan is slightly higher than with a variable-rate plan, but the price is fixed for the contract term. This means that any price fluctuations in the market do not impact you, as your electricity price is guaranteed.
A variable-rate plan, on the other hand, is an electricity plan where your electricity rate is not fixed. Every electricity supplier offers this type of variable-rate plan, as they offer a very low energy price during times when energy production exceeds energy demand. However, with this type of energy plan, even the best energy supplier will have to up your business electricity rates when the production cannot keep up with the demand.
Therefore, at times, you will be paying way more to your commercial electricity supplier. This mostly happens during summer, as the demand to deliver electricity increases sharply with the hot weather. As the ACs across the state power up, the power generator has to work extra hard, increasing the price of electricity and increasing your electricity bill.
Factors That Affect Commercial Energy Rates
Similar to residential energy plans, even the best business electricity plan comes with a variety of electricity rate options. Things such as business type, business size, energy usage, and length of contract all have a say in how the price of energy and, finally, your electric bill is determined. Opting for renewable energy options can increase your electric bill even further, so make sure that you, as a business owner, take all these factors into consideration.
The type of business you’re running can have a big say in how much you pay for your electricity. Different business types carry a different amount of risk, so every electricity company has to take extra care to protect themselves from a lot of unpaid but used energy. For this reason, a restaurant and a hospital will never pay the same best business electricity rates.
Your business size also determines your power rates. Small businesses consume less energy than large businesses, so business electricity prices will be significantly different. The more power you use, the lower the price you pay. Furthermore, combining high usage with a fixed plan with long contract terms ensures even lower power rates for business customers.
Energy usage determines the prices of the power you pay as a small or large business owner in two ways. Firstly, the more energy your use, the lower rate you get to pay. Furthermore, the time of the day when most energy is used has a say in the energy price, as using power during the peak demand can increase your effective energy rate a lot. So, knowing your energy usage and energy habits is necessary to ensure a low price for business consumers and considerable savings year after year.
Length of Contract
The contract length is the final factor that affects the cost of electricity that your small business will be paying. As everyone’s energy needs are different and as the energy needs change over the course of a year, the length of the contract is one of the most stable factors determining the price. Generally speaking, the longer the contract term, the lower rate you will pay for your electricity needs.
By signing longer contracts (1 year +), you provide the electric supplier with more stable revenue. In turn, they use this money to purchase electricity for future use and ensure a stable power supply at low energy rates. A part of these savings is then forwarded to you in the form of a reduced price.
What Is Energy Deregulation?
Energy deregulation means that the state does not interfere with how energy prices are formed on the market. Quite on the contrary, energy deregulation means you have an energy choice to make before your contract renewal or signing a new contract (for new customers). This creates a more competitive energy market where the price of electricity is formed based on demand and supply rather than arbitrary factors.
Importance of Energy Deregulation
Energy deregulation is important for several reasons. It ensures competitive energy and natural gas market, lowers electricity prices, and it provides better customer support by energy providers. All of this creates a market that thrives and a market that is only partially controlled by the government.
How To Choose Commercial Energy Supplier?
Choosing your best commercial energy supplier and ensuring reliable and affordable electric service is more than simply choosing a company and purchasing electricity from them. To ensure that you really understand what the best plan offered by providers for you is, you should start with your own energy use and energy needs. A business that runs 9-5 and a 24/7 factory has very different energy needs, so simply shopping for electricity would not be the smartest move.
Instead, you should use Electricrate to compare approximate energy rates offered in your ZIP code area. Please bear in mind that most electric suppliers do not make their business energy rates public, so you will have to contact them and check for yourself. As every business is different, there is no point in making a universal plan. On the contrary, energy experts assess every business and offer a customized rate.
How To Switch Energy Suppliers?
If you would like to switch your commercial energy supplier, the first thing to do is ensure that you gather many quotes. Usually, 5-10 will suffice. Next, compare both peak and off-peak energy rates to your energy needs and habits. Once you’ve decided which offer sounds the best to you, go for it: contact the supplier and ask them to prepare the contract for you.
Finding the Best Commercial Electricity Rates
When looking for the best business electricity rates, you should first understand that purchasing this type of electricity is a bit different than purchasing electricity for your home. First, most business electricity suppliers will not make their business energy rates publicly available. This means that you need to contact every electricity provider to find out about their rates.
Secondly, as the rates are not publicly available, comparing electricity plans can be difficult. Electricrate is here to help, but you should always check. So, use Electricrate to compare rates and commercial energy suppliers, make your choice, and then contact the supplier. Make sure to also ask for any freebies you may get, such as energy efficiency programs which may help you save energy and pay less with your energy plan.
Small Business Electric Rates
If you own a small business and want to shop online, this can easily be done. If you expect to pay less than $2,500 for electricity every month and have less than 5 meters, your switch can be easily made as well. Another thing to consider is how high your demand is. Demands higher than 50 kW may need a bit extra research and time to set up their service.
Large Business Commercial Rates
If you are shopping for electricity for a large business, you should know that large business consumers usually pay a lower, customized rate. If your average electric bill is higher than $2,500, you should be getting a really low electric rate. Make sure to ask for an EFL (Electricity Facts Label) to ensure there are no hidden costs or fees which may significantly increase your effective power rate.
Who is the best business energy supplier?
Entrust Energy, V247 Power, and Green Mountain Energy are among the best business energy suppliers. With the lowest commercial energy rates of $0.0432, $0.0434, and $0.0435 per kWh with a 36-month term length, respectively, these energy supplier companies are the most affordable in the Lone Star State. Champion Energy is there as well, with a $0.045 per kWh energy rate.
What are the best rates for business electricity?
Business electricity rates in Texas start from the very low $0.0432 per kWh. The average business energy rate in Texas is $0.0838, some 28% lower than the national average. Any business energy rate between these two values is considered good.
What’s the difference between residential and commercial?
Residential relates to one’s residence, domestic and private life. Commercial relates to business activities, with the exception of industrial, which relates to large-scale manufacturing. So, residential energy is the energy used in one’s home, while commercial energy is used in business space, such as office space, shops, restaurants, etc.
Is commercial electricity cheaper than residential?
Yes, commercial electricity is cheaper than residential. This is because commercial properties use more energy for their operation than a typical household does. The higher consumption means that the commercial customers are a longer-term and more stable source of income for your electricity provider, so they get rewarded with lower rates.
If you own a company or a small business in Texas, you should know that the deregulated market has a lot to offer. This type of competitive market is full of energy experts and all other personnel who are there to ensure that you are satisfied with the energy rate and customer support. To ensure that your businesses get the lowest rates, contact the suppliers now and find out what the right plan for electric service looks like.