Breaking Down Texas Electricity Costs
| Plans, Rates, and Programs
Breaking Down Texas Electricity Costs
If you’ve ever looked at your electric bill and thought, “What in tarnation?!” – you’re not alone. Texas might have some of the lowest electricity rates in the country, but we sure do love using power. Let’s break it all down, from what you’re paying to what affects those rates, and how you can keep more dollars in your pocket.
How Much Does Electricity Cost in Texas?
As of February 2025, the average residential electricity rate in Texas is about 15.6¢ per kilowatt hour (kWh) – lower than the national average of 17¢. Sounds like a sweet deal, right? But here’s the kicker: we Texans use more power than most folks, which means higher bills overall.
Why Are Texas Electricity Bills So High?
Even though we get cheaper juice per kWh, we sure do burn through it. The average Texan forks over $179 every month, adding up to nearly $2,200 a year on electricity. Over 25 years, that’s around $53,700!
Want to see how Texas stacks up against other states on a monthly basis? Check out the U.S. Energy Information Administration’s Electricity Data Browser for a deep dive into the numbers.
What Makes Electricity Prices Go Up and Down?
There are a few things that can make your light bill jump higher.
Fuel Costs
If we’re burning coal or natural gas to make electricity, then the price of those fuels affects what you pay.
Extreme Weather
From ice storms to heatwaves, Texas weather is no joke. When storms knock out power lines or freeze up equipment, the cost of keeping the lights on can go up.
Market Demand
When everybody and their grandma cranks up the A/C in the summer months, demand spikes – and so do prices.
Picking the Right Energy Plan for Your Texas Home
Most Retail Electric Providers (REPs) in Texas offer a few different flavors of energy plans.
Fixed Rate Plans
These lock in your rate for the length of your contract (usually 12, 24, or 36 months). You get predictable bills and no surprise price hikes.
Variable Rate Plans
These change month to month based on market prices. If you’re good at managing your energy use and keeping an eye on trends, you might save some cash here.
Time-of-Use Plans
Electricity costs less during off-peak hours, so you can save if you shift energy use away from peak times (usually 6–10 p.m.).
Renewable Energy Plans
More folks are switching to green energy, and it’s often cheaper than fossil fuels! Wind and solar power are bringing prices down in Texas. At Energy Texas, we love our fixed-rate, 100% renewable plans – so you always know what you’re paying while keeping it clean and green.
How to Cut Down Your Electric Bill in Texas
Want to keep more of your hard-earned cash? Start with these power-saving tips:
Mind That Thermostat: Raising the A/C by just one degree can cut energy use by about 6%. The sweet spot? 78°F in summer, 68°F in winter. If you’re leaving for more than four hours, follow the 4x4 Rule – adjust the temperature by four degrees to save.
Use Energy-Efficient Appliances: Look for Energy Star-rated gadgets to keep your bill in check.
Weatherproof Your Home: Seal up those drafty doors and windows, and your HVAC won’t have to work as hard.
Upgrade to a Smart Thermostat: It adjusts temps automatically and can save you some serious cash.
Find Your Best Texas Energy Plan
At Energy Texas, we’re all about affordable, 100% renewable energy with top-notch customer service. Want to see what plans we got cooking? Head on over to energytexas.com, plug in your zip code, and find the best deal for your home.
FAQs
How much does the average Texan pay for electricity each month?
The average Texan shells out around $175 a month to keep the lights on and the A/C humming. But if you’re running that A/C like a marathon in August, don’t be surprised if your bill climbs higher than a West Texas thermometer!
What makes electricity prices go up and down in Texas?
A few things can shake up your power bill – fuel costs, wild Texas weather, and demand. If a storm knocks out power lines or folks are cranking up their A/Cs all at once, prices can shoot up faster than a jackrabbit on a hot tin roof!
Do electricity prices change with the seasons?
They do! Summer and winter are peak times when A/Cs and heaters are working overtime. When it’s hotter than a jalapeño in July or colder than a blue norther in January, expect rates to rise right along with that thermostat.