Best Texas Plans for Low Usage: Apartments & Small Homes

Q: Should I get prepaid electricity for my apartment?

Prepaid electricity (no deposit, pay as you go) costs 15-20 cents per kWh —more expensive than traditional plans at 14-15 cents. However, prepaid suits: Short-term rentals Credit-challenged renters If you have decent credit and a stable lease , traditional fixed-rate plans cost less.

Q: Can my apartment complex force me to use a specific REP?

Only if the building has master metering (one meter for the whole building with utility included in rent). If your unit has its own meter and you receive individual bills, you can choose any REP in your TDU territory. Some complexes have "preferred" REPs but cannot legally require you to use them .

Q: What is the minimum electricity plan term for apartments?

Month-to-month plans exist but often cost 18+ cents per kWh. The shortest fixed-rate terms are typically 3-6 months . True Simple 6 offers a 6-month term at competitive rates. For short-term flexibility, month-to-month may be worth the premium—calculate your total stay cost either way.

Quick Answer

Using 500 kWh monthly? The plan advertising 8.9 cents costs you 21.8 cents. Here is how apartment dwellers and efficient homes can stop overpaying.

Why Low-Usage Texans Pay the Most

Texas electricity marketing targets high-usage households. REPs structure bill credits around 1,000 kWh thresholds that apartment dwellers never reach.

The EFL shows rates at 500, 1,000, and 2,000 kWh—but if you use 550 kWh, none of those benchmarks reflect your actual cost.

The result:

SimpleSaver 7 advertises 8.9 cents at 1,000 kWh but costs 21.8 cents at 500 kWh usage.

That's not a discount—it's a penalty for using less electricity.

At 500 kWh monthly:

Plan	Cost
SimpleSaver 7	$109
True Simple 6	$72.50

The "cheap" plan costs $36.50 more every month—or $438 annually—for the privilege of being efficient.

Plans Designed for Low Usage

Best rates for apartments and small homes

Many plans penalize low usage with high minimum charges. See which plans work best for your apartment or small home.

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Who Qualifies as Low Usage?

Low usage typically means under 750 kWh monthly.

This includes:

One-bedroom and studio apartments (300-600 kWh average)
Energy-efficient condos with modern insulation (400-700 kWh)
Small single-family homes under 1,200 sq ft (500-800 kWh)
Any home with solar panels offsetting grid usage
Households using gas for heating, water, and cooking
Part-time residents or frequent travelers
Retirees with modest cooling needs

Check your Smart Meter Texas data—if your highest month stays under 900 kWh, flat-rate plans will save you money.

Best Plans for Under 750 kWh

For low-usage apartments and small homes, you need flat-rate plans that don't penalize efficiency.

What to look for:

Less than 2¢ variance between 500 kWh and 1,000 kWh rates
No minimum usage requirements or bill credits
Flexible terms (6-month options for renters)
Green energy options without premium pricing

Current recommended plans are shown below. Click any plan name to check availability in your area and see exact pricing for your ZIP code.

Plans update daily to reflect current market rates. What matters is the rate at your usage level—typically 500 kWh for apartments—not the advertised headline rate.

Loading current plans...

Special Considerations for Apartment Renters

Lease flexibility:
Match contract term to your lease. If uncertain about renewal, choose 6-month terms or no-ETF plans. Some REPs offer apartment-specific plans with lower ETFs.

Moving provisions:
Ask if your plan transfers to new addresses. Many REPs allow transfers within their service area without ETF.

Roommate situations:
If splitting electricity with roommates, consider whose name goes on the account—that person is responsible for the full bill.

Master-metered buildings:
Some apartments include electricity in rent with master metering. You have no choice of REP in these situations. Confirm your building is individually metered before shopping.

Base Charges Hit Low-Usage Harder

A $9.95 monthly base charge adds:

2 cents per kWh at 500 kWh usage
Only 0.5 cents at 2,000 kWh

Low-usage households should prioritize plans with minimal base charges.

Example at 500 kWh:

Plan	Rate	Base	Total
Plan A	13.5¢	$9.95	$77.45
Plan B	14.5¢	$4.95	$77.45

Same total cost despite 1 cent rate difference.

Always check the EFL for average bills at 500 kWh—this includes base charges and gives true cost comparison.

The Bill Credit Trap for Low Usage

Bill credits typically grant $50-150 when you use 1,000+ kWh. If you never hit that threshold, you never get the credit.

SimpleSaver 7 includes a $125 credit at 1,000 kWh:

Usage	Credit	Effective Rate
1,000 kWh	$125	8.9¢
500 kWh	$0	21.8¢

You pay 145% more per kWh than someone using double your electricity.

Bill credits actively punish efficiency. For low-usage households, they transform "cheap" plans into the most expensive options available.

Why Flat Rates Win Year-Round

Apartment usage is relatively stable. You might hit 400 kWh in spring and 650 kWh in August—both well under bill credit thresholds.

With flat-rate plans:

Your rate stays consistent: 14.5 cents in spring, 14.5 cents in August
Your bill increases only because you use more, not because your rate structure penalizes you

With bill-credit plans:

Higher usage months cost the normal rate
Low-usage months cost the penalty rate

Flat rates provide budgeting predictability that bill-credit structures cannot match for low-usage households.

How to Switch and Start Saving

Step-by-step:

Check your average monthly usage on Smart Meter Texas or recent bills
If average is under 750 kWh, focus only on flat-rate plans
Compare EFL rates at 500 kWh specifically—ignore 1,000 and 2,000 kWh rates
Look for base charges under $6 monthly
Match contract term to your housing situation
Execute switch online (takes 10-15 minutes)
Your new rate activates within 1-2 billing cycles

No service interruption, no technician visit, no hassle.

Frequently Asked Questions

Why do bill-credit plans even exist if they hurt low-usage customers?

Bill credits let REPs create eye-catching rates at specific usage levels—typically around 1,000 kWh where the credit impact is strongest.

High-usage customers above the threshold get reasonable rates
Low-usage customers below the threshold subsidize by paying much higher effective prices

It's a market design reality, not malice—but it costs you money either way. The solution: Compare plans at YOUR actual usage, not at advertised benchmarks.

What if my apartment usage spikes in summer?

Even with AC running heavily, most apartments stay under 900 kWh. Check your August Smart Meter data from last year.

If your peak month is still under 900 kWh: Flat-rate plans save money year-round
If you hit 1,000+ kWh in summer only: You might break even—but flat-rate still provides better overall value

Should I get prepaid electricity for my apartment?

Prepaid electricity (no deposit, pay as you go) costs 15-20 cents per kWh—more expensive than traditional plans at 14-15 cents. However, prepaid suits:

Short-term rentals
Credit-challenged renters

If you have decent credit and a stable lease, traditional fixed-rate plans cost less.

Can my apartment complex force me to use a specific REP?

Only if the building has master metering (one meter for the whole building with utility included in rent). If your unit has its own meter and you receive individual bills, you can choose any REP in your TDU territory. Some complexes have "preferred" REPs but cannot legally require you to use them.

What is the minimum electricity plan term for apartments?

Month-to-month plans exist but often cost 18+ cents per kWh. The shortest fixed-rate terms are typically 3-6 months. True Simple 6 offers a 6-month term at competitive rates. For short-term flexibility, month-to-month may be worth the premium—calculate your total stay cost either way.

Looking for more? Explore all our Texas Energy guides for more helpful resources.

About the author

Enri Zhulati

Consumer Advocate

Enri knows the regulations, the fine print, and the tricks some suppliers use. He's spent years learning how to spot hidden fees, misleading teaser rates, and contracts that sound good but cost more. His goal: help people avoid the traps and find plans that save money.

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