Struggling with high business electricity bills? You’re probably paying too much. Let’s break down how to find the best commercial electricity rates so you can save big—fast.
What are the Best Commercial Electricity Rates Right Now?
The best commercial electricity rates vary based on location, usage, and plan type. In 2024, business electricity rates averaged about:
- 5 cents per kilowatt-hour (kWh) in Texas
- 2 cents per kWh in Pennsylvania
- 3 cents per kWh in Illinois
- 8 cents per kWh in Ohio
These are averages. Some businesses pay much less by switching providers or negotiating better deals.
Real Case: Texas-Based Auto Shop Saved $9,000 a Year
Joe owns a small car repair shop near Houston. He used to pay 10.5 cents per kWh. After shopping around, he switched providers and locked in a 7.9 cents per kWh rate. That’s around $750 in monthly savings—almost $9,000 per year!
What Affects Your Commercial Electricity Prices?
Many things affect how much you pay. Here’s what matters most:
1. Your Zip Code
Electricity prices change based on where your business is. Businesses in deregulated states—like Texas, Ohio, and Pennsylvania—can choose their electricity supplier. This means more options and better prices.
2. Your Business Usage
Do you use lots of power during the day? Or only a little? High-use businesses usually get lower rates per kWh. But timing also matters. Many providers charge more during “peak” daytime hours.
3. Your Plan Type
There are two main types of plans:
- Fixed-rate plans: One rate that doesn’t change. Great for budgeting.
- Variable-rate plans: Changes monthly. Risky, but could save money if rates drop.
4. Contract Length
Longer-term contracts often have better rates. But if prices drop later, you’re stuck paying more.
5. Your Credit Score
Yes, your credit rating matters. Some companies offer better rates to businesses with good credit.
Which States Offer the Best Deals?
Here are some of the best states to shop for electricity in:
| State | Avg. Business Rate (¢/kWh) | Deregulated? |
| Texas | 8.5 | Yes |
| Ohio | 7.8 | Yes |
| Pennsylvania | 10.2 | Yes |
| Illinois | 11.3 | Yes |
| California | 17.5 | No |
If you’re in a deregulated state, you have power over your power. That means more control over cost.
How to Shop Smart and Save Big
Let’s walk through the steps to get a cheaper electricity rate.
Step 1: Know Your Usage
Look at your last 6–12 utility bills.
- What’s your average monthly usage?
- Are there times when your usage peaks?
- Are you paying a fixed or variable rate?
Knowing these helps you compare better deals.
Step 2: Use Online Tools
Websites like:
- EnergySage
- Choose Energy
- SaveOnEnergy
These let you compare quotes in minutes. Plug in your ZIP code and business size. You’ll see lots of rates, plans, and providers.
Step 3: Compare Apples to Apples
Always check:
- Price per kWh
- Contract length
- Early termination fees
- Special limits or extra charges
Cheapest isn’t always best. Be smart and double-check everything.
Step 4: Ask for Custom Quotes
If your business uses lots of power, don’t settle for online rates. Call the electricity provider directly. Ask for a custom quote. Many companies give discounts for larger users.
Step 5: Lock In a Good Rate
Once you find a plan you like, lock it in. Fixed-rate plans are safest for budgeting. Watch for rate hikes and blame-proof your business now.
Data-Driven Tip: Timing Matters
Studies show that buying a new commercial electricity plan in March or April can save up to 15% each year. That’s when demand is low and providers offer lower rates. Avoid locking in new plans in summer—rates often spike due to higher AC usage.
Avoid These Common Mistakes
Not Reading the Fine Print: Hidden fees in contracts can cost you hundreds per year.- Ignoring Peak-Hour Charges: Some plans charge more from 2 PM to 7 PM. Ouch.
- Not Checking Contract End Date: When your fixed plan ends, you may automatically switch to a high variable rate. Mark that date in your calendar.
Real Story: Bakery Cut Rates by 40% in Pennsylvania
Maya runs a small bakery in Pittsburgh. Her electricity costs were killing her profits. After reviewing past bills, she realized she was on a variable plan with a high rate. She switched to a fixed-rate plan at 9.1 cents per kWh. Boom—she now pays 40% less each month.
Why It Pays to Compare
According to the U.S. Energy Information Administration, businesses in deregulated states that switch energy suppliers save up to 25% per year. That’s thousands in savings just for clicking a few buttons.
But What About Green Energy?
Want to save money and help the planet? Some providers offer 100% green energy plans. These use solar or wind power. And some green plans cost the same—or even less—than normal ones.
Cool, right?
The Bottom Line: Paying Less Means Earning More
High electricity costs can eat into your business profits. But with smart moves, you can get the best commercial electricity rates and start saving money every month.
Here’s what to do:
- Grab your recent bills and find your current rate.
- Use energy comparison sites to view better offers.
- Lock in a great fixed-rate plan with long-term savings.
Do this today. Your bottom line will thank you.
