GoodCharlie Blog

Everything You Need to Know About Business Electricity in Texas

Written by Daryl Lawrence | Jan 24, 2023 9:09:54 PM

While residential electricity plans are the most common type in Texas, there are also business electricity plans available. If you’re curious and want to know more about business electricity and how it differs from traditional electricity, you’ve come to the right place. This article will also delve into how business electricity plans work, how to choose the right plan for your needs, and what the average rates are in Texas. 

 

  1. What is Business Electricity? 
  2. How is Business Electricity Different Than Residential Electricity? 
  3. What are the Average Business Electricity Rates in Texas? 
  4. Perks to Look for With Business Electricity 
  5. How to Choose the Right Business Electricity Plan
  6. Can I Choose GoodCharlie as My Business Electricity Provider? 

 

What is Business Electricity in Texas? 

As the name indicates, business electricity refers to electricity plans reserved for business owners. As with residential electricity plans, there are several different types of business electricity plans and many different companies that offer them. Some of these companies will specialize in business electricity while others offer them in addition to residential plans. 

Can Anyone Get Business Electricity? 

While most people think that business electricity is reserved for large companies and corporations, this isn’t true. There are some restrictions on business electricity, but, for the most part, anyone who owns a business can qualify for it. Here are the people and entities who qualify for business electricity in Texas. 

  • Churches 
  • Schools 
  • Universities 
  • Shopping Centers 
  • Corporations 
  • Hospitals 
  • Medical Clinics  
  • Offices 

 

Essentially, any business or commercial property, no matter how big or small, qualifies for business electricity. This can even include people who have home offices, work from home, or have a business attached to their residential property. In other words, any building or structure used for anything outside of residential living will need a business electricity plan. 

How is Business Electricity Different Than Residential Electricity? 

While business and residential electricity plans are reserved for different customers, they are the exact same thing. In other words, if you own both a home and a business, your electricity gets delivered to you the same way and comes from the same origin. In many cases, they might even get delivered by the same power company. 

 

Here’s how the process works for both residential and business electricity. 

 

  1. Electricity gets created by a power generating plant out of fossil fuels, renewable resources, or nuclear energy. 
  2. Fossil fuels that get converted to energy include coal, natural gas, and oil, while renewable resources used to create electricity include the sun, wind, and water. 
  3. These power-generating plants sell the electricity they create to retail electric providers (REPs.) 
  4. If you live in a deregulated part of Texas, you have the power to choose your own REP and plan. 
  5. If you live in a regulated part of Texas, your REP is pre-determined, and you have no say in the matter. 
  6. Regardless of where or how your electricity gets created, it gets delivered to your home or business by your local utility company (TDU.) 
  7. Your REP will work in conjunction with your TDU to ensure that electricity makes it to your place of business. They will also handle all power outages and issues related to losses of power. 
  8. While you have the power to choose your REP, you have no say in who delivers electricity to your home. In most cases, however, this doesn’t matter as most TDUs operate very similarly throughout the state. 

 

So, other than the fact that business electricity is reserved for commercial properties and residential electricity is reserved for homes, there really isn’t any difference between the two. Contact us to learn more or to sign up for one of GoodCharlie's residential electricity plans. 

Is Business Electricity Affected by Deregulation? 

In the same way that residential electricity is affected by deregulation, so is business electricity. If you live in a part of the state that has deregulated the electricity market, which is currently around 85% of Texas, you have the power to choose your business electricity provider. 

What are the Average Business Electricity Rates in Texas? 

Currently, the average rate for business electricity in Texas is between 9.5 and 11 cents/kWh. This is quite a decrease from residential electricity rates, where the average cost in Texas is closer to 12 or 13 cents/kWh. Therefore, if you have a home and business that are combined or work from home, you can save big bucks on your electricity bill by choosing a business electricity plan. 

Why are Business Electricity Rates Lower Than Residential Rates? 

Simply put, businesses use way more electricity per day, week, and month, than residential properties. In most cases, a house or apartment won’t use more than 1,000 to 2,000 kilowatt-hours of power per month. A business, on the other hand, might use upwards of 5,000, 10,000, or much more, depending on the size and type of business. For that reason, business rates are typically lower than residential ones. 

Perks to Look for With Business Electricity 

While business electricity plans are often straightforward in how they’re structured, there are certainly ways to increase your savings. For instance, one of the best ways to save money is to take advantage of the perks reserved for business electricity plans. 

 

  • Usage Discounts 

 

As with residential electricity plans, you often get a discounted rate depending on how much electricity your business uses. 

  • Business Discounts and Programs 

 

Because of how much electricity businesses use, there are often renewable energy discounts for businesses that use electricity from renewable resources. 

  • Tax Write-Offs

 

The third way that you can save money on your business electricity bill is by writing it off during tax season. If your business is a non-profit organization or you use renewable energy, tax write-offs are possible and probable. However, make sure to know if you qualify for this perk because the last thing you need is the IRS investigating you for tax fraud! 

How to Choose the Right Business Electricity Plan

The best way to choose the right business electricity plan for your needs is to shop around and not rush things. Many electricity providers will attempt to lure you in with promises and perks that seem great but ultimately end up costing you money. While researching and checking around for the best plan will take some time and diligence, it’s well worth the effort when you’re saving hundreds of dollars on your monthly power bill. 

Can I Choose GoodCharlie as My Business Electricity Provider? 

Unfortunately, while GoodCharlie is committed to giving Texans the best residential electricity plans, we don’t currently offer business plans. However, if you work from home or have a home office, you can potentially sign up for one of our residential plans! When you do this, you get to take advantage of all that we have to offer, including 24/7 video access to vets, a $750 pet emergency fund, and our monthly donation to a local pet shelter. Contact us to get started and to find out if you qualify!