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Texas Energy Services and How They Work

Written By: Jesse Shaver

Last Updated: 07/10/2023

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Energy is a term that most people are familiar with, but that very few people actually understand. It can refer to many different things such as your personal energy level, the "energy" of a room, or a source of power and electricity. Energy is more misunderstood in the context of electricity than it is with most other subjects.

If you're wondering how Texas energy works and what it means, you've come to the right place. Texas energy isn't necessarily a complicated subject, but it is often misunderstood. We'll discuss the difference between Texas energy and electricity, as well as the different types of energy companies out there.

Is There a Difference Between Texas Energy and Electricity?

The main reason that there's so much confusion about Texas energy is that it often gets confused with electricity. While energy and electricity can sometimes mean the same thing and get used interchangeably, they aren't always a perfect match.

Electricity is a form of energy that is harnessed and used to provide power to homes and businesses. It consists of an electrical charge and flows that you can control with the flip of a switch or circuit breaker.

Where electricity and energy overlap is that electricity is a type of energy, but not all energy gets turned into electricity. Energy is a much broader term that can refer to many different things, but electricity is much more limited.

Texas Energy Companies Versus Electricity Companies

Adding to the confusion is the fact that most Texas energy companies are also electricity companies. As a result, people often mean the same thing when they refer to an energy, electricity, or utility company. While this isn't necessarily wrong, it can make understanding the difference between Texas energy and electricity that much harder.

Texas Energy Sources

Another reason that Texas energy is confusing is that there are many different energy sources that get converted into electricity. When electricity was first becoming a household item in Texas, it was usually created from water, steam, or coal. However, as time has passed and technology has continued to advance, most of these Texas energy sources are things of the past.

Here's a breakdown of the main Texas energy sources that are used to create electricity as of 2019.

  • Natural Gas: In terms of sheer numbers, natural gas is by far the most common Texas energy source. Nearly 50% of all the electricity in Texas comes from natural gas, with 47.4% being the exact percentage.
  • Coal: Although coal has fallen a long way since the invention of electricity, it's still one of the main energy sources in Texas. Roughly 20% of all Texas electricity comes from coal, but that number is ever decreasing thanks to the focus on creating electricity from renewable resources.
  • Wind Power: As coal is decreasing in popularity, wind turbines are increasing. It's estimated that just over 20% of all electricity in Texas comes from wind farms. As a result, Texas is by far the number one state in the country in terms of how much electricity comes from wind power.
  • Nuclear Power: Although there are only two nuclear power plants in Texas, between 10 and 11% of all the state’s electricity comes from nuclear power.
  • Solar, Hydro, Biomass, and Others: While more stress is getting put on solar energy than on any other Texas energy source, only 1.1% of all Texas electricity comes from solar energy. Hydroelectricity, biomass, and other energy sources make up less than .5%.
  • Texas Energy Rates

    Where things aren't quite as confusing is when you start talking about Texas energy rates. In most cases, Texas energy rates mean the same thing as Texas electricity rates. The only difference is that energy rate can refer to either electricity or your natural gas, but it usually refers to electricity.

    However, whether you're talking about gas or electricity rates, both terms refer to utility bills that you pay on a monthly basis and that you want to minimize as much as possible. Currently, the average Texas energy rate for electricity is 12 cents/kWh. While 12 cents is the average, it might be possible to find a lower rate.

    If you think you're paying too much for your Texas energy or electricity bill, enter your zip code in the free Rate Comparison Tool at the top of the page. is your go-to tool when it comes to comparing Texas energy and electricity rates to find the best option for your home or business.

    Different Types of Texas Energy Companies

    Green Energy Companies

    Green is a slightly newer term when it comes to energy companies. Green energy is a term that is used to describe energy that is produced from renewable resources. This includes solar, wind, water, and geothermal power.

    Green energy is a clean and sustainable way to produce electricity. It produces no emissions or pollutants, and it does not rely on fossil fuels. Green energy is becoming increasingly popular as people become more aware of the environmental impacts of traditional forms of energy production.

    Green energy companies are able to provide clean, renewable energy to their customers at a competitive price. As the demand for green energy increases, these companies are able to scale up their operations and provide even more clean energy to the grid. This helps to create a more sustainable future for everyone.

    However, if you hope to have a sustainable energy plan that uses renewable resources, you'll want to sign up for a plan with a green energy company. Here's how it works.

      1. You purchase electricity from your Texas energy provider through a "green energy plan" that they offer.
      2. Your electricity provider delivers electricity to your home.
      3. Your electricity provider pays renewable energy credits to energy companies that create green electricity.
      4. While you aren't actually using green energy in your home, your monthly bill goes to support the development, creation, and research of green energy.

    Renewable Resource Energy Companies

    A renewable resource energy company is any energy producer that creates electricity out of renewable resources. This can include water, wind, solar, or bioenergy, and these types of companies are increasing greatly in popularity.

    Non-Renewable Energy Companies

    Non-renewable energy companies use traditional resources such as coal, natural gas, or nuclear energy to create electricity. While these types of companies produce roughly 75% of all electricity in Texas, they are decreasing in popularity and are being replaced by renewable energy companies.

    How to Choose the Best Texas Energy Plan

    Whether you want to purchase a Texas energy and electricity plan that uses renewable or non-renewable resources, is the way to do it. We have an electricity comparison tool that personalizes a plan tailored to your actual home. Our intuitive search engine takes your address, home’s square footage, and usage history to serve you the best rates.

    With our intuitive shopping experience, you can be sure that you’re getting a personalized recommendation tailored to your home and preferences. We'll lay out all of the electricity plans available in your area in an easy-to-read and understandable way. Then, you can sift through different Texas energy plans until you find the perfect one for your needs.