The Average Electric Bill in Texas Might Surprise You

The Average Electric Bill in Texas Might Surprise You

On average, residents in Texas spend around $179 every month on their electric bills. Over the course of a year, that adds up to $2,148, which is 1% higher than the national average. So what adds up in Texas, and is there anything you can do to lower your payments? Read on for insights and tips.

What Factors Influence the Average Electric Bill in Texas

There are numerous factors contributing to higher energy bills in Texas, the primary one of which is that Texans use more power than residents of other states. In 2021, according to the U.S. Energy Information Administration, the average monthly electricity use by Texas households is 36 kilowatt hours each day, which is significantly higher than the national average of 29 kWh. How does this break down, and what are other factors?

The Size of Your Home

The square footage of your home is a major consideration, because it takes more energy to heat or cool a home depending on its size. And in the Lone Star State, the average size of a home is 2,170 square feet. There are only 10 other states with larger homes including Utah, Colorado, and Idaho.

Gridhacker.com has put together a helpful table comparing costs of average electricity bills:

The Seasons and Market Demand

The extreme heat in summer and extreme cold in winter make it expensive to keep our homes at a comfortable temperature, with cooling and heating. During the most severe weather, the demand for energy goes up throughout your service area, making electricity more expensive. For example, during the hot summer months, energy use by Austin customers often surpasses 1,200 kWh in a month compared to milder winter months where usage can dip to around 700 kWh.

In 2022, many parts of the state broke records for the most days that were 100º or higher; the city of Austin endured the longest stretch of 100 degree days that it has seen in 125 years.

The Cost of Fuel

Fuel costs also play a big role in determining your bill's bottom line. For instance, if natural gas prices go up due to market dynamics or supply chain issues, this increase often gets passed along as a rise in the rate you pay per kWh.

For more information on why and how the cost electricity is rising, read our article The Average Price You Pay for Electricity is Increasing – Here’s Why.

Average Electric Bills in Major Cities in Texas

While the cost of electricity in various cities depends on factors such as the size of your home, Texas Moving USA has put together a quick comparison of costs in different major cities:

How to Lower Your Average Monthly Energy Bill in Texas

Looking to lower your electricity bill? There are many ways to help, ranging from simple Do-It-Yourself solutions to investments in smart appliances and more.

Your Energy Consumption Patterns

The first is taking steps to reduce or shift your electricity usage so it is not drawing from the grid during peak periods, which are typically in the afternoons and evenings, when people are coming home from work and school, between 1 pm and 9 pm. The Department of Energy calls this “Demand Response.” One practical step is turning up your air conditioning overnight, and then turning it down during the morning hours (6:00 to 8:59 am) when demand for energy is at its peak. You can also do loads of laundry or dishes in the dishwasher, or even charge your electric vehicle, during times when energy costs less.

Seal and Insulate Your Home

It’s also important to be sure that your home is properly sealed, to avoid letting heated or cooled air escape. Some spots where air leakage commonly happens include window frames, doors, mail slots, attic access hatches, and anywhere that there is a hole in a wall – including switch plates, electrical outlets, and around pipes and wires. A bit of caulk or weatherstripping on these areas can make a significant difference. And don’t forget to plug and seal any holes in your attic; because hot air rises through your house to the highest point in your home, attics are often the biggest culprits for heat loss.

Take Advantage of Natural Light

Using natural light to illuminate your home is as simple as it sounds. During the daylight hours, open your blinds and curtains during the day to let in as much sunlight as possible: not only does it brighten your interiors, reducing the need for artificial lighting, it also helps to warm up your home. You can even paint your walls lighter colors, making rooms appear brighter. Installing skylights or even light shelves will also help bring natural light into your space, just be sure to install skylights with blinds so you can close them during the hottest parts of the day and year.

Implement Regular HVAC Maintenance

Regularly tuning up your HVAC can also prevent spikes in energy use and so unexpectedly high electricity bills. At Rhythm Energy, we offer a HVAC and Surge Protection Plan, which is a partnership with Cinch that includes annual check-up and maintenance of your system.

Use Programmable Thermostats

Another great option to consider is a smart thermostat. Not only can it be programmed to run at a slightly higher temperature during on-peak hours, but newer models also come with artificial intelligence (AI) optimization capabilities, so they can learn when you like to adjust the temperature and create a personalized heating and cooling schedule.

Upgrade to Energy-Efficient Appliances

It’s also worth considering smart appliances, such as ENERGY STAR certified refrigerators, dishwashers, clothes washers, and dryers. These draw less energy, and many can even be connected to the Smart Grid to offer added convenience and even more savings. The same goes for automated lighting controls and HVAC systems with smart scheduling and energy usage monitoring.

Renewable Energy Incentives

At Rhythm Energy, we offer renewable energy plans and discounts that can help you save money, like our industry-leading PowerShift plan that can save you $500 or more a year, or our Rhythm Rewards that give you bill credits for doing simple things you’re likely already doing. We also offer weekly usage reports with bill predictions, so you’re always in the know and can budget for upcoming bills.

Installing solar panels can also lower your monthly electricity costs, or even eliminate them. Depending on the intensity of sunlight hours where a home is located, the average electricity customer in Texas would need a 9.9 kilowatt (kW) solar panel system to offset 100% of their annual electricity consumption.

Because we’re so committed to the success of renewable energy and helping our customers make the most of it, at Rhythm Energy we provide a free concierge service to help you determine if solar is right for your home. We’ll gather quotes from installers, optimize your system size, and identify the right battery storage technology – all for free. Just visit our Solar Hub for details.

For customers who enroll in AutoPay and paperless billing, we even offer a $5 credit off of each bill. This is called our Digital Discount Plan, designed to help your wallet and our planet. For more tips on ways to save, read our article How to Save on Energy in Texas.

Compare Rates and Switch Energy Providers

In Texas, you can switch energy providers at any time if you find a plan that has a lower price per kWh or is in any other way better for you. Most residents benefit from a simple fixed rate electricity plan without any hidden costs or fees, or teaser offers like free nights and weekend offers that often end up costing you more overall. To find out what plans are available to you from Rhythm Energy, visit gotrhythm.com and type in your zip code.

FAQ

How much is electricity per month in Texas?

The average electricity bill in Texas is $179 a month, but this depends on many factors including the size of your home, the rate you pay your retail electricity provider per kilowatt hour, and what part of the state you live in.

What are some simple ways to cut my average utility bill in Texas?

Ensuring that your home is properly sealed and insulated, using natural light to brighten and warm your home, and shifting behaviors so you use the most energy during off-peak hours can really help. More significant changes and investments include programmable thermostats and smart appliances.

Can I switch my energy provider to lower my average electricity bill in Texas?

You can! If you find a provider who better matches your needs and lifestyle, then you can switch at any time but be aware that you may be charged an early termination fee for ending an existing contract. Rhythm Energy offers a reimbursement of up to $150 in bill credits for early termination fees from your previous supplier when you switch to Rhythm Energy (applies only to fixed rate plan customers with a contract). Another way that we stand out in the industry is by offering a 30 Day Test Drive. Try Rhythm Energy risk free for a month, and if you aren’t satisfied, cancel within 30 days without any termination fees.