Paying high electricity bills for your business? You don’t need to. Let’s break down how to get the best electricity rates for business, save money, and keep your business powering ahead.
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What Are the Best Electricity Rates for Business?
The best electricity rates for business are prices that help you save money every month on your energy bill. These rates depend on your business size, location, and how much energy you use.
Some businesses get locked into bad deals because they don’t shop around. Others don’t understand their bill. But good news—finding a better rate is easier than most people think.
If you’re paying more than 12 cents per kilowatt-hour (kWh), you could probably save. Some small businesses in Texas, for example, pay under 9 cents/kWh by choosing the right plan.
Let’s look at what makes an electricity rate “the best” for your business.
Understand How Business Electricity Pricing Works
Getting a low rate starts with knowing how energy pricing works.
1. Fixed vs. Variable Rates
- Fixed rate: You pay the same price per unit every month.
- Variable rate: Your price can go up or down.
Most businesses prefer fixed rates. They help you avoid surprises.
2. How Size Matters
Small businesses tend to pay a bit more per unit than large ones. Why? Large companies use more energy and get volume discounts from suppliers.
That doesn’t mean small businesses are stuck. They can still find great rates.
3. Your Business Location
Electricity pricing depends on your state’s energy market. States like Texas, Illinois, Pennsylvania, and New York let you choose your own supplier.
In these places, businesses can shop around for better deals. Make sure to compare different offers.
Real Numbers: How Much Can You Save?
Let’s do the math:
- Jason runs a small bakery in Dallas, Texas.
- He used to pay 13 cents per kWh.
- He switched to a new plan that charges 9 cents per kWh.
- His shop uses 2,000 kWh a month.
- Savings = (13 – 9) cents × 2,000 = $80/month
- That’s $960 a year back in his pocket!
Even a few cents per unit adds up!
Why Businesses Overpay and How to Stop It
Businesses often stick with the same energy provider for years. But prices change. New deals pop up all the time.
Here’s why you might be overpaying:
- You’re on a default rate from your utility provider.
- You didn’t compare offers.
- You don’t know when your contract ends.
- You’re paying for extra services you don’t need.
Sound familiar? Then it’s time to get proactive.
Steps to Find the Best Electricity Rates for Your Business
1. Gather Your Current Energy Info
Before shopping, grab your latest electricity bill. Look for:
- How many kilowatt-hours you use each month.
- Your current rate per kWh.
- Your contract end date (so you know when to switch).
2. Compare Suppliers
Use comparison websites like:
- EnergyBot
- Choose Energy
- SaveOnEnergy
These sites show the best rates in your area. Just enter your ZIP code and business size.
Tip: Check reviews for the electricity supplier too. A cheap rate with bad service costs you time and stress.
3. Lock in a Fixed Rate (When Prices Are Low)
Locking in a fixed rate can help avoid price hikes. Energy prices often spike in summer and winter. Try to lock in during spring or fall when prices dip.
4. Look Into Green Energy Plans
Eco-friendly plans may not cost more. In some areas, renewable energy plans are the same—or cheaper.
Customers care about going green. A green energy plan helps your image too.
Case Study: Coffee Shop Owner Cuts Bill by 20%
Maria owns a café in Philadelphia.
Here’s what she did:
- She used 3,500 kWh/month and paid 11 cents/kWh.
- She used EnergyBot to compare plans.
- Switched to a clean energy plan at 9 cents/kWh.
- Now saves $70/month—or $840/year.
- Bonus: She markets her café as “powered by wind.”
It took her only 20 minutes to switch.
Quick Tips to Avoid Bad Deals
- Don’t pick the first offer you see.
- Avoid variable rates unless you understand the risk.
- Watch out for early cancellation fees.
- Read the fine print—some deals have hidden charges.
When to Recheck Your Rate
Business changes? So should your energy plan.
Check your rate when you:
- Add new equipment.
- Move to a new location.
- Hire more people (they’ll use more power).
- Your contract is about to expire.
Why Your Contract End Date Matters
If you don’t switch before your contract ends, you get moved to a “default rate.” These rates are often higher—sometimes 30% more.
Set a reminder a month before your contract ends. That gives you time to shop around.
The Power of Group Buying
Do you have friends with small businesses? Consider group buying.
Joining a buying group or business energy co-op can lead to better rates. The more businesses involved, the better the bargaining power.
Some local chambers of commerce help organize this.
Conclusion: Save Money in Just 3 Easy Steps
Ready to lower your energy bills? Here’s what to do:
- Get your current energy info: usage, rate, contract end.
- Shop around using trusted sites. Compare real offers.
- Lock in a good fixed rate—preferably during off-peak months.
Don’t leave money on the table. Review your electricity plan today. Your bottom line will thank you.