Renewable Energy Plans in Texas (2026 Guide)

A Dallas homeowner flipping through her mail last summer noticed her electricity bill had climbed past $180 for the month. She switched to a 100% renewable plan on Power to Choose that same afternoon and trimmed her rate noticeably. Her story is not unusual.

Texas runs the most competitive retail electricity market in the country. Dozens of Retail Electric Providers (REPs) sell green energy plans, and shoppers can switch at any time without paying a penalty on month-to-month contracts, or at the end of a term on fixed plans. As of July 2026, all-in advertised rates across roughly 132 active plans in the Oncor/Dallas territory start at about 7.1 cents per kWh, with a median of around 16.5 cents per kWh at the standard 1,000 kWh usage level.

This guide explains how renewable plans work, what to look for on the Electricity Facts Label, and how to compare providers without getting misled by headline numbers.

When a Texas REP calls a plan "100% renewable," it generally means the provider matches your consumption with Renewable Energy Certificates (RECs), purchases wind or solar energy directly from generators, or a combination of both. A REC represents one megawatt-hour of electricity generated from a qualifying source, like West Texas wind or a Hill Country solar farm.

Physical electrons on the grid do not arrive labeled by source. What the plan guarantees is an accounting match: for every kilowatt-hour you consume, an equivalent amount of renewable generation was fed into the Texas grid on your behalf. That accounting is verified by third-party certification bodies and disclosed on the plan's Electricity Facts Label (EFL).

Some plans go further, sourcing power from specific local projects and disclosing the generation mix by percentage. The EFL is the document that separates marketing language from verifiable fact, and every Texas REP is required by the Public Utility Commission of Texas (PUCT) to provide one.

The EFL is a standardized one-page disclosure the PUCT requires for every retail electricity plan. For renewable plans, pay close attention to these fields:

Renewable content percentage. A plan marketed as "100% renewable" should show 100% in the fuel mix disclosure. Plans that say "up to 100%" or "partially renewable" are different products.

Average price at 500, 1,000, and 2,000 kWh. Texas uses tiered pricing, and many plans include bill credits that only activate above a certain usage threshold, typically 1,000 or 2,000 kWh. A plan that looks cheap at 2,000 kWh can be expensive if you use only 700 kWh. Always find the tier that matches your household.

TDU delivery charges. Your Transmission and Distribution Utility (Oncor, CenterPoint, AEP Texas, or TNMP, depending on where you live) charges pass-through delivery fees that appear on every plan regardless of which REP you choose. These fees are not controlled by your REP and show up in the all-in rate on the EFL.

Contract length and early termination fee. Fixed-rate renewable plans often run 6, 12, or 24 months. Know the termination fee before you sign.

If any of those fields feel unclear, explore our Texas electricity guide for a plain-language walkthrough of the EFL structure.

Texas REPs package renewable electricity in several ways, and the differences matter for your bill and your environmental impact.

Fixed-rate 100% renewable plans lock your energy charge for the contract term. They are the most popular choice because they protect against summer price spikes and are easy to budget. The renewable sourcing is verified through RECs.

Variable-rate green plans fluctuate month to month with wholesale market conditions. They can be cheaper in mild weather months and significantly more expensive in August. Read the EFL carefully; a low introductory rate is not a guarantee.

Time-of-use (TOU) renewable plans price electricity by the hour. Solar generation peaks midday, so some TOU green plans offer near-zero or even negative rates during daytime hours, then charge more in the evening peak. These plans reward households with smart appliances, EV chargers, or batteries.

Prepaid green plans let you pay for electricity before you use it, with no credit check and no deposit. The renewable sourcing still appears on the EFL. Prepaid rates tend to run higher than fixed-rate alternatives, so they suit people who prioritize flexibility over price.

Community solar subscriptions are a newer option in parts of Texas, allowing renters or homeowners with shaded roofs to claim a share of output from a local solar farm. Structure and availability vary by REP and territory.

The gap between green and conventional electricity plans in Texas has narrowed considerably as wind and solar capacity expanded across the state. As of July 2026, the lowest all-in advertised rate across plans in the Oncor/Dallas territory sits at roughly 7.1 cents per kWh at 1,000 kWh, and that figure includes plans from both renewable and conventional REPs. The median across all plan types is about 16.5 cents per kWh.

In practical terms, shoppers willing to compare carefully can often find a 100% renewable plan priced within a cent or two of the cheapest conventional option. That is a meaningful shift from five years ago, when green plans routinely commanded a visible premium.

Rates vary by TDU territory, usage level, and contract term. A plan that looks competitive in Houston's CenterPoint territory may be priced differently in the AEP Texas area around Corpus Christi. Always pull the EFL for your specific territory and usage tier before making a decision. ElectricRates.org shows live rates filtered by territory and plan type.

The PUCT operates Power to Choose (powertochoose.org), the official state shopping platform. It lists every plan from every licensed REP and lets you filter by renewable content, contract length, and usage level. It is free and does not require an account to browse.

Here is a practical process for finding the best green plan:

1. Know your average monthly usage. Pull the last 12 months of bills and find your average kilowatt-hours. Summer months in Texas can push usage well above 2,000 kWh; winter months may fall under 500 kWh. Knowing your range helps you pick the right EFL tier.

2. Identify your TDU. Your current bill shows your TDU in the delivery charges section. Rates on Power to Choose are territory-specific, so make sure you are comparing plans available in your service area.

3. Filter for 100% renewable. Power to Choose has a renewable filter. Use it, then sort by price at the usage tier closest to your average.

4. Read the EFL, not just the headline rate. Click through to the EFL for any plan that interests you. Confirm the renewable content percentage, verify the price at your actual usage level, and note the termination fee.

5. Check the REP's reputation. The PUCT maintains a complaint history database. A low rate from a provider with a pattern of billing disputes is worth less than it appears.

You can also browse curated Texas plan comparisons at ElectricRates.org, where live rates are updated regularly and filtered by territory.

Switching REPs in Texas is generally straightforward, but a few details are worth confirming before you enroll.

Timing your switch. If you are in a fixed-rate contract with an early termination fee, calculate whether the savings on a new plan outweigh that fee over the remaining contract months. Many REPs send a renewal notice 30 to 60 days before your contract ends, which is the ideal window to shop without penalty.

Deposit requirements. Some REPs require a deposit based on credit history. The amount varies by provider and is disclosed during enrollment. Prepaid green plans skip this requirement entirely.

Enrollment confirmation. After you enroll with a new REP, your TDU switches the meter data on the scheduled start date. Your power does not go out during the switch. Confirm your start date in the enrollment confirmation email.

Dual-billing period. You may receive one final bill from your old REP covering usage up to the switch date, then regular billing from your new REP. This is normal, not double-charging.

Smart thermostat and EV synergy. If you have a programmable thermostat or an electric vehicle, a TOU renewable plan can reduce your bill further by shifting load to off-peak hours. Check whether the EFL specifies the exact peak and off-peak windows.

Beyond the EFL's fuel mix disclosure, some REPs pursue third-party certifications that signal a higher standard of renewable sourcing.

Green-e Energy certification from the Center for Resource Solutions is the most recognized standard in the U.S. It requires that RECs be current-year vintages and sourced from qualifying renewable facilities, and it includes annual audits. If a plan's EFL or marketing references Green-e certification, that is a meaningful signal.

Direct power purchase agreements (PPAs) with Texas wind or solar farms are another marker of substantive commitment. Some REPs disclose the specific projects they contract with; this information sometimes appears in supplemental plan documentation beyond the EFL.

Neither certification type changes how the electricity physically reaches your home. Your TDU still delivers the power through its grid infrastructure, and the delivery charges remain the same regardless of your REP's sourcing approach. What changes is the accounting: certified renewable sourcing gives you a higher-confidence guarantee that clean generation was matched to your consumption.

Texas offers one of the widest selections of 100% renewable electricity plans anywhere in the country, and the pricing is competitive with conventional options. As of July 2026, the market floor sits around 7.1 cents per kWh in the Oncor/Dallas territory, and shoppers who take 20 minutes to compare plans on Power to Choose or ElectricRates.org regularly find clean energy options within striking distance of the cheapest plans available.

The EFL is your anchor. Ignore the billboard rate and read the price at your actual usage tier, confirm the renewable content percentage, and check the termination fee. Everything else, contract length, certification, REP reputation, follows from there.

Green electricity in Texas is no longer a niche or premium product. It is a mainstream option that, with a bit of comparison shopping, can align your values and your budget at the same time.