Want to save money on your business power bills? You’re in the right place. We’ll show you how to find the best commercial electricity rates—and keep more cash in your pocket.
What Are the Best Commercial Electricity Rates Right Now?
The best commercial electricity rates are the ones that help your business save money while keeping operations running smoothly. As of 2024, average U.S. commercial electricity rates range between 9 and 16 cents per kilowatt-hour (kWh), depending on your state. But the lowest rates can drop to under 7 cents per kWh in states with strong competition, like Texas or Ohio.
Here’s a quick breakdown:
- Texas: As low as 6.5¢/kWh with fixed-rate plans
- Ohio: Starting near 7.2¢/kWh with switching providers
- California: Higher due to grid issues, avg around 17.6¢/kWh
- New York: Avg 14.9¢/kWh but negotiable in energy-choice markets
If you’re in a deregulated market, you can shop and compare rates. That means you’re not stuck with just one utility. You get to pick who supplies your power—just like picking the best phone plan.
Why Electricity Rates Matter So Much for Businesses
Even a small change in your electricity rate can save big bucks over time. Let’s say your business uses 10,000 kWh a month:
- At 11¢/kWh, you pay $1,100/month
- At 8¢/kWh, that’s only $800/month
- You save $300/month—or $3,600 a year!
Now imagine a warehouse or factory using 100,000 kWh a month. That monthly savings becomes $30,000 a year. Yeah, huge difference.
Energy costs are one of the top three expenses for most businesses. Lowering your rate can mean the difference between profit and loss.
How to Find the Best Rates for Your Business
Getting the best commercial electricity rates takes a little legwork—but it’s worth it.
1. Know Your Market
Is your state deregulated? If you live in places like:
- Texas
- Pennsylvania
- Ohio
- Illinois
- New Jersey
…you can choose your electricity provider. That gives you power (pun intended!) to shop, compare, and lock in lower rates.
In regulated states like Florida or Georgia, you may not have much choice—but energy-saving plans still help.
2. Understand Your Usage Pattern
Look at past energy bills. See when you use the most power. Some providers offer time-of-use plans. If your business runs mainly at night or weekends, you can get a lower rate.
Get a smart meter or ask for an energy audit. That step alone can slash 10–20% off most bills.
3. Use Online Rate Comparison Tools
There are websites like:
- com
- com
- org (for Texans)
These sites let you compare rates, plan lengths, and providers side by side. Some plans lock in your rate for up to five years. That’s a great option if electricity prices are rising.
4. Get Quotes from Multiple Providers
Don’t just go with the first deal. Contact three to five energy suppliers. Ask for business-specific quotes.
Some larger businesses even get custom pricing. If your energy use is high (over 50,000 kWh/month), you may qualify for special offers.
5. Look for Extras (Green Energy, Rewards, No Hidden Fees)
Some providers offer green energy from wind or solar—at no extra cost. Others offer rebates, smart thermostats, or free upgrades.
Always read the fine print. “Intro rates” can expire and jump later. Pick a fixed-rate plan if you want peace of mind.
Real-Life Example: A Bakery Saves $9,000/Year
A bakery in Dallas switched from their legacy utility to a competitive provider in 2023. By locking in a 3-year fixed rate at 7.1¢/kWh (vs. 10.9¢ previously), they saved $750/month.
They also got a smart thermostat and LED lighting upgrade, further cutting energy use by 12%.
Moral of the story? Small changes = big savings over time.
State-by-State Rate Comparison (2024)
| State | Avg Commercial Rate (¢/kWh) | Shopping Allowed? |
| Texas | 6.5 – 9.5 | ✅ Yes |
| Ohio | 7.2 – 9.8 | ✅ Yes |
| Illinois | 9.1 – 11.6 | ✅ Yes |
| New York | 12.9 – 15.4 | ✅ Yes |
| California | 15.5 – 18.9 | ❌ Limited |
| Georgia | 11.2 – 13.5 | ❌ No |
| Florida | 10.3 – 12.9 | ❌ No |
Businesses in deregulated states score the best deals. In Texas alone, over 400 energy plans are available for businesses to choose from.
When is the Best Time to Lock in Rates?
There’s a season for low rates—just like fruit at the store.
Electricity prices usually dip in spring (March–May) and fall (September–November). That’s when demand for heating or cooling is lower.
Watch the energy market. If gas prices drop, so does electricity. Lock in when prices are low—not during peak summer or winter.
Should You Use a Broker?
If your business is large, brokers can simplify the process. They:
- Collect quotes for you
- Negotiate rates
- Handle paperwork
- May cost a small fee or get paid by the provider
Just make sure they’re licensed and review all offers carefully. Ask what commission they earn.
What to Avoid
- Don’t sign a variable-rate plan unless you know the risks
- Don’t pick the lowest rate without checking contract terms
- Don’t ignore renewal deadlines—your rate may jump without notice
One business in Pennsylvania forgot to renew their plan and got moved to a “default utility rate” 45% higher than their old plan. Ouch.
Fast Facts & Stats
- Businesses in deregulated states save 10–30% on power bills
- 88% of small businesses overpay by not switching providers
- Fixed-rate energy plans are 28% more predictable for budgeting
Conclusion: How to Get the Best Commercial Electricity Rates
Want to lower your business electric bill? Here’s how:
- Check your usage and state laws (Can you shop energy plans?)
- Compare multiple providers using online tools
- Choose a fixed-rate plan that fits your budget and energy pattern
Start comparing now. Each month you wait could cost you hundreds of dollars.
Your future self—and your wallet—will thank you.
