Electricity Plans with Incentives in Texas

Written by Christine Orlando | Reviewed By Christine Anez
Last updated November 3, 2025

Electricity providers in Texas are getting creative with ways to help you save. Many plans now include incentives like bill credits, free nights or weekends, smart devices, smart thermostat rebates, gift cards, and more. Some incentives help you get more out of your electricity plan, while others are fun extras. Let’s explore the most common incentives and some of the most popular Texas electricity plans with incentives.

Key Takeaways

  • Are electricity incentive plans really worth it? Incentive plans can offer valuable perks like bill credits, free nights, or smart home devices, but only if your usage habits align with the plan’s structure. For most Texans, a simple fixed-rate plan can provide more predictable savings, while incentive-based plans can reward those who monitor usage closely or use smart technology strategically.
  • Which providers offer the best incentives right now? Texas leaders like TXU Energy, Gexa Energy, Octopus Energy, and others offer some of the most competitive incentives. From airline miles and smart thermostat discounts to solar buyback and EV charging rewards. Always review the Electricity Facts Label (EFL) to confirm how incentives apply to your actual usage.
  • How do I find the right plan for my home? Because incentive availability depends on your ZIP code, the easiest way to compare is through Power Wizard’s comparison tool. Enter your ZIP code to instantly see which bill credit, free nights, or renewable incentive plans apply to your address, and find the one that truly maximizes your savings.

What Are Electricity Incentives and How Do They Work in Texas?

Electricity incentives are added benefits that Retail Electricity Providers (REPs) offer to customers to make their plans more rewarding. They can help cut costs or add value by offering non-electricity-related rewards, like gift cards. Some incentives are tied to energy use, while others reward customer actions like enrolling in a plan or referring a friend.

These incentives exist because Texas has a deregulated electricity market, meaning consumers can choose their electricity provider. This open competition drives companies to create offers that set them apart and appeal to different types of customers. Understanding how these incentives work helps you see which offers are truly beneficial.

Most Common Types of Incentives (With Examples)

Below are some of the most common types of electricity plan incentives you’ll find in Texas, along with examples of how they work in practice.

Bill/Usage Credits

Usage credits (also known as bill credits) are one of the simplest and most common types of electricity incentives. They reduce your total bill when you use a specific amount of electricity in a billing cycle. For instance, an electricity plan might offer a $50 credit each month if your usage surpasses a certain threshold (usually 1,000 or 2,000 kWh, depending on the plan). These credits can make a difference over time.

Free Nights & Weekends

Some electricity plans offer free nights or weekends to encourage customers to shift energy use to off-peak hours. During these periods, the energy charge can drop to $0/kWh; however, Transmission and Distribution Service Provider (TDSP) delivery fees, taxes, and other government charges still apply. For example, a plan might waive the energy charge on weeknights from 8 p.m. to 6 a.m., provided you meet the plan’s usage and contract requirements.

Rewards & Loyalty Programs

Rewards and loyalty programs give you points, discounts, or other benefits for actions like renewing your contract, paying on time, or referring friends. Over time, these points can be redeemed for bill credits, products, gift cards, or even cash value. Some REPs may offer rewards every time you refer a new customer to them, rather than requiring you to build up points.

Smart Thermostat and Other Devices

REPs often partner with manufacturers to offer discounts or rebates on smart home devices, not just thermostats, but also cameras, smart speakers like Alexa, and other energy-saving technology. These devices help you monitor and control your home’s energy use more efficiently, lowering waste and reducing costs. Some plans even include free smart devices when you enroll, adding upfront value and enabling long-term savings through smarter energy management.

Airline Miles, Gift Cards & Sports Perks

Beyond bill-related incentives, some electricity providers offer unique rewards like airline miles, retail gift cards, or exclusive access to sporting events. These perks can make your electricity plan feel more personalized and fun. For example, a provider might partner with a local sports team to offer ticket giveaways or fan experiences as part of your plan.

Pros and Cons of These Incentives

Incentive Type Pros Cons
Usage/Bill Credits
  • Simple, automatic savings when usage hits a target range.
  • Can lower monthly bills for homes with consistent energy use.
  • Credit applies only within a narrow usage window (often 1,000–2,000 kWh).
  • Miss the target and you lose the credit, paying a much higher per-kWh rate.
  • Difficult to predict usage during hot Texas summers.
Free Nights & Weekends
  • Encourages off-peak usage, which can lower grid strain.
  • May work for EV owners or households active mostly at night.
  • Daytime rates are often significantly higher, erasing savings.
  • TDSP delivery charges, taxes, and fees still apply.
  • Requires strict habit changes to benefit.
Rewards & Loyalty Programs
  • Earn points or credits for on-time payments or referrals.
  • Can redeem rewards for gift cards, products, or usage credits.
  • Rewards often have limited value compared to higher rates.
  • Redemption rules may change or expire.
  • Not guaranteed monthly savings.
Smart Thermostat & Smart Devices
  • Offers upfront value through free or discounted smart devices (e.g., thermostats, cameras, Alexa speakers).
  • Enables more efficient, automated energy management.
  • Plans offering these perks may include higher energy rates or longer contracts.
  • Device compatibility and setup can vary by home system.
  • Savings depend on how actively devices are used.
Airline Miles, Gift Cards & Sports Perks
  • Adds fun or personalized benefits (tickets, merchandise, travel points).
  • Appeals to brand-loyal or sports-fan households.
  • Incentives rarely offset higher energy costs.
  • Limited practical savings on bills.
  • Often used as marketing to mask less competitive rates.

Best Incentive-Based Electricity Plans in Texas (By Category)

Below are some examples of current incentive programs available across Texas. Each one highlights a different way providers are helping customers save, earn rewards, or take advantage of smarter energy technology.

This information is provided solely for comparison purposes. Some of the retail energy providers below are not a partner of and do not endorse, or are endorsed by Power Wizard. No reference to some of these retail energy providers is meant to imply or establish a relationship with some these retail energy providers.

Best for Smart Home Users

Electricity Provider Incentive Description
Reliant Energy Connect and Save Earn a $25 bill credit and 0.5¢/kWh discount while enrolled in Reliant’s Degrees of Difference Smart Thermostat program
Gexa Energy Up to 2 free smart thermostats Get up to two free Sensi™ smart thermostats with a Gexa Energy Saver 12 or 24 plan
Direct Energy Vivint® Smart Home Solutions Receive a free Vivint® Doorbell Camera Pro (valued at ~$249) plus free installation when you purchase a qualifying Vivint® smart home system.
Amigo Energy Stat Rewards Program Get a one-time $50 bill credit plus a $0.005/kWh discount by enrolling your eligible smart thermostat in Amigo’s Stat Rewards program.
Octopus Energy Intelligent Octopus for Smart Thermostats Get a lower energy rate every month when you allow Octopus Energy to make modest thermostat adjustments during peak periods

 

Best for Frequent Travelers (Miles/Gift Cards)

Electricity Provider Incentive Description
Reliant Energy AAdvantage® Miles Earn 15,000 miles at signup plus 500 bonus miles each month during your contract term
Reliant Energy Southwest Rapid Rewards Points Earn 15,000 points at signup and 500 points each month during your contract term
Reliant Energy United MileagePlus® Miles Earn 15,000 miles at signup plus 500 bonus miles each month during your contract term

 

Best for Eco-Friendly Texans

Electricity Provider Incentive Description
Chariot Energy Battery Rewards Program Earn up to $60/month in bill credits by letting Chariot manage your home battery system’s charge and discharge
TXU Energy Conservation Program Get up to $150 in rewards when you enroll and allow TXU to make small temperature adjustments to your smart thermostat during peak demand events
TXU Energy Battery Rewards Program Receive a $100 digital reward card every six months for allowing TXU to dispatch your battery’s stored energy during high-demand events
TriEagle Energy Connect & Conserve Earn up to $150 in rewards or a $50 Visa gift card when you enroll and allow TriEagle Energy to make small temperature adjustments to your smart thermostat during peak demand events
Octopus Energy Intelligent Octopus for EVs Get up to 30% off your rate when you allow Octopus Energy to optimize EV charging times based on grid demand
Octopus Energy Intelligent Octopus for Home Batteries Earn $20/month for every 5 kWh of battery storage when you allow Octopus Energy to dispatch stored energy during demand events
Important note: Incentive plans aren’t limited to the ones already listed above. Multiple REPs in Texas use bill credits, free smart devices, gift cards, and other rewards to attract customers. Use this table as a sample of available plans.

Renewable & Solar Incentive Plans in Texas

Not all electricity incentives are about free nights or bill credits. Many Texas providers and agencies now reward customers for choosing clean energy. From solar buyback programs to tax credits and property tax exemptions, renewable incentives can provide both immediate and long-term savings.

Renewable Energy Bill Credits and Buyback Programs

Several retail electricity providers (REPs) in Texas now offer solar buyback or net metering incentives, which credit you for excess electricity your solar panels send back to the grid.

  • Chariot Energy, Gexa Energy have programs that give bill credits for each kilowatt-hour exported.
  • Austin Energy offers a Value of Solar (VoS) rate that credits homeowners monthly for solar generation.
  • CPS Energy (San Antonio) provides up to $2,500 in rebates for solar installations, with an additional $500 bonus for using locally sourced panels.
  • Oncor Electric Delivery offers up to $9,000 in incentives for 2025 systems that include both solar and battery storage, though funding is limited.

These programs effectively function like green energy bill credits, rewarding you for participation and energy contribution, similar in structure to traditional electricity incentives.

Texas State Incentives and Tax Benefits

Texas adds its own layer of incentives to encourage renewable participation:

  • Property Tax Exemption: 100% exemption on the added property value from solar, wind, or biomass systems—so installing solar won’t raise your home’s assessed value.
  • Sales Tax Exemption: Solar equipment purchases are exempt from state sales tax, reducing upfront costs.
  • Franchise Tax Exemption (Businesses): Companies that manufacture, sell, or install renewable energy devices are exempt from Texas’s franchise tax.
  • Commercial Deductions: Businesses can deduct either 10% of system costs or the full amount from taxable capital.

These state-level benefits pair well with plan-based renewable incentives, reducing both monthly bills and long-term costs.

How to Maximize Renewable Incentives

To make the most of renewable and solar-related incentives in Texas:

  1. Explore Local Rebates. Check with your local utility or REP for city or service-area programs like Austin Energy or Oncor.
  2. Consider Battery Storage. Incentives now include standalone batteries, and many Texas programs require or reward them.
  3. Verify Buyback Compatibility. If you already have solar, choose a REP offering net metering or renewable rewards for exported power.

Together, these federal, state, and provider-based programs can make clean energy participation one of the most valuable electricity incentives in Texas—combining bill credits, rebates, and long-term savings for homes and businesses.

Want to learn how to choose the best solar-backed plans? Use Power Wizard’s comparison tool to find the best provider for your situation.

Smart Home Technology: A Path to Extra Savings

Smart home technology is changing the way Texans manage energy use and save money. Devices like smart thermostats, plugs, and home batteries can automatically adjust how and when electricity is used, helping reduce demand during peak hours. Many providers now offer incentives or bill credits for customers who connect these devices to eligible energy plans.

Devices That Qualify for Credits

Device eligibility varies by plan and provider. However, they typically include:

  • Smart thermostats such as Google Nest, Ecobee, Honeywell, and Emerson Sensi
  • Home batteries that store and release energy when demand is high
  • Smart plugs and energy hubs that help manage usage automatically

When these devices are linked to approved energy programs, providers can make small, temporary adjustments during high-demand periods. You stay in control, but the connection helps improve grid efficiency — and you get rewarded for participating.

How to Compare and Choose the Best Incentive Plan

Finding the right incentive plan starts with understanding your energy habits and knowing how to compare offers accurately. Incentives can add real value, but only if they align with how you use electricity. Follow these simple steps to make a smart, informed choice:

  1. Determine your average usage. Review your past electric bills or use your provider’s online portal to see how much energy your home typically uses each month.
  2. Use comparison tools. Power Wizard makes it easy to compare plans side by side and see their true cost.
  3. Check plan details and terms. Look beyond the promotional offers to review the Electricity Facts Label (EFL) for rate details, usage tiers, and contract terms.
  4. Match the plan to your lifestyle. A work-from-home household might benefit from a fixed-rate or bill credit plan, while frequent travelers could save more with a free nights or weekends option.

Understanding the Electricity Facts Label (EFL)

The Electricity Facts Label is your key to understanding what a plan really costs. Every Texas electricity plan must include one. It outlines:

  • Price per kilowatt-hour at different usage levels
  • Contract length and early termination fees
  • Base charges and any included credits or discounts

Always review the EFL before enrolling. It helps you see whether the plan’s incentives apply to your actual usage and ensures there are no surprises on your bill.

TDSP Fees and Geographic Eligibility

Transmission and Distribution Service Provider (TDSP) fees are fixed delivery charges determined by your local utility company. These fees cover the cost of maintaining power lines, delivering electricity to your home, and responding to outages, and they apply no matter which Retail Electric Provider (REP) you choose.

Because TDSPs vary by region, available electricity plans and incentives also differ by location. Once you enter your zip code in a comparison site, like Power Wizard, or in a REPs site, you will see plans and incentives tailored to your location.

Red Flags to Avoid in Incentive-Based Plans

Incentive-based plans can be great for getting extra perks that matter to you and at times save on your electricity bill, but not every offer delivers long-term value. Some plans include hidden terms or conditions that reduce your benefits down the road. Before enrolling, take a closer look at the fine print to make sure the incentives work in your favor.

Watch for Usage Triggers That Void Incentives

Some electricity plans only apply bill credits or discounts if your monthly usage stays within a specific range. For example, you might see a $50 bill credit advertised, but it only applies if you use between 1,000 and 2,000 kWh. Go above or below that range, and the credit disappears.

Cancellation Fees & Short-Term Gimmicks

Some incentive plans come with steep cancellation fees or short-term rewards that disappear after a few months. For example, a $100 sign-up bonus might seem appealing, but canceling early could cost you more in termination fees than you earned in rewards. Look for plans that balance fair incentives with transparent terms, and focus on overall value rather than one-time perks.

Choosing Incentives That Fit Your Life

Electricity incentives can turn a good plan into a great one if they align with your energy habits and long-term goals. Whether it’s bill credits, smart thermostat programs, or renewable energy rewards, the best plan is one that provides consistent value and fits the way you use electricity every day.

With so many options available across Texas, comparing plans on your own can take time and effort. That’s where Power Wizard comes in. Our smart comparison tool allows you to see available electricity plans side by side so you can make the right choice for your household. Enter your ZIP code to get started!

FAQs: Electricity Incentives in Texas


Reliant Energy leads this category with multiple airline reward plans, including:

  • AAdvantage® Miles : Earn 15,000 miles at sign-up plus 500 bonus miles per month.
  • Southwest Rapid Rewards® Points: Earn 15,000 points at sign-up plus 500 points monthly.
  • United MileagePlus® Miles: Earn 15,000 miles upfront plus 500 miles per month during your contract.

These plans are ideal for frequent travelers, but note that they often come with higher base electricity rates, meaning you’re effectively paying for the rewards over time.


Bill credit plans reward you with a fixed discount (usually $50 to $100 per billing cycle) when your electricity usage hits a specific threshold. Commonly 1,000 or 2,000 kWh per month. If you use slightly less, you lose the credit and pay the higher standard rate.

Because Texas weather and air conditioning demand can vary widely, most households find it difficult to consistently stay in the qualifying range. In many cases, a simple fixed-rate plan can provide more predictable savings.


Yes. Many Texans can pair standard electricity incentives with renewable energy rewards:

  • Solar Buyback Programs give you bill credits for excess energy your panels send back to the grid.
  • Utility Rebates, such as or Oncor’s battery + solar incentive up to $9,000, help offset installation costs.
  • State Incentives, like Texas’s property tax exemption, can dramatically reduce total system cost.

These programs work separately from your electricity plan but can significantly boost your overall savings when combined.

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