What’s the Average Electric Bill in Texas? Understanding Your Monthly Costs

If you’re a Texas resident, one of your key concerns when it comes to managing your household budget is likely your electric bill. How much will it be this month? Is it higher or lower than the average? And what factors affect the cost of electricity in the Lone Star State?

This article will answer those questions with updated 2026 data, explain what contributes to electricity costs, and offer practical strategies to help Texans save, whether you live in a one-bedroom apartment in Dallas or a four-bedroom home in Houston.

Average Electric Bill in Texas in 2026

As of 2026, the average monthly electric bill in Texas is $163.72, based on an average consumption of 1,096 kilowatt-hour (kWh) per month at an average electricity rate of 14.94¢ per kWh.

This is about 14% above the national average, which sits around $142.26 for 863 kWh/month at 16.48¢/kWh, according to the U.S. Energy Information Administration (EIA). While Texans use more electricity, largely due to air conditioning, larger homes, and long, hot summers, rates are generally lower thanks to the state’s deregulated energy market.

Understanding Texas Electricity Costs

Texas operates under a deregulated electricity market, meaning many residents can choose from competing electricity providers rather than being locked into a single utility company. This opens the door to better electricity rates, plan types, and options like fixed-rate or renewable energy plans.

Texas also benefits from a diverse energy mix. The state leads the country in natural gas and wind power generation, which helps keep wholesale electricity prices lower than in many other states. In some areas, solar adoption is growing, especially where energy demand spikes during peak heat.

How Electric Bills Compare: Texas vs. Other States

Here’s a quick comparison of average monthly electric bills:

Not sure how your bill compares? Use our plan finder or contact us for a free analysis.

Average Electric Bill by Home Size in Texas

Your square footage, household size, and location all play a role in your energy usage. Here’s a breakdown by typical home size:

• Studio apartment: $55 per month (avg. 650 sq ft)
• One-bedroom apartment: $63 to $93 per month (avg. 750 sq ft)
• Two-bedroom apartment: $84 to $117 per month (avg. 1,000 sq ft)
• Three-bedroom home: $148 to $176 per month (avg. 1,750 sq ft)
• Four-bedroom+ home: $211 to $332+ per month (avg. 2,500 sq ft)

Keep in mind these are average electric bills. Actual costs will vary based on your electricity provider, plan type, and how energy-efficient your home is.

What Affects the Cost of Electricity in Texas?

Multiple factors influence your monthly utility bill beyond just square footage. Understanding them can help you reduce costs and choose a better energy plan.

1. Electricity Rates and Plans

The type of electricity plan you’re enrolled in can have a huge impact on your monthly bill. In Texas, you have the option to choose from different rate structures based on your needs and budget.

• Fixed-rate plans: Lock in a stable price per kWh, ideal for budgeting.
• Variable-rate plans: Rates fluctuate with the market and can be risky in high-demand seasons.
• Renewable energy plans: Often competitively priced and good for long-term savings.

Paying above-average electricity rates? Use Utilities Now to compare energy providers and find the best electricity rates for your area.

2. Energy Usage and Lifestyle

Your personal habits and household routines directly affect how much electricity you consume. The more power-hungry your day-to-day life, the higher your bill will be, particularly during Texas’s summer months.

• Texans use more electricity due to extreme weather, heavy AC usage, and larger homes.
• High energy consumption in summer months can cause bills to spike, especially without smart thermostats or insulation.

3. Home Size and Efficiency

The energy efficiency and size of your home determine how much energy is needed to keep it comfortable. Larger or older homes typically require more power to heat or cool, especially if insulation is lacking. Larger homes naturally require more energy to cool and heat with the extra square feet. Energy-efficient upgrades like LED bulbs, insulation, and smart thermostats can lower bills.

4. Appliances and HVAC Usage

Your appliances, particularly HVAC systems, can make up a major portion of your electric bill. Outdated or inefficient equipment tends to use more power, especially during high-demand seasons.

• Old or poorly maintained appliances drain more power.
• HVAC systems account for up to 50% of home electricity usage in Texas.

5. Local Climate and City

Where you live in Texas can also influence your bill. Cities like Houston and Dallas experience longer, hotter summers that require more air conditioning, driving up kWh usage and monthly costs.

• Houston, Dallas, and other Texas cities often see higher summer usage.
• Regional electricity prices can vary slightly by provider or utility zone.

Strategies for Reducing Your Texas Electric Bill

Cutting energy costs doesn’t always mean big sacrifices. Use these smart strategies to reduce your electric bill without sacrificing comfort:

• Upgrade your thermostat: Smart thermostats can help control AC usage automatically.
• Seal and insulate: Weatherproof doors and windows to retain cool air.
• Run appliances efficiently: Wash laundry in cold water, run full loads, and use fans instead of cranking the AC.
• Switch to LED lighting: It reduces electricity consumption with long-term savings.
• Get an energy audit: Some providers offer free or low-cost audits to pinpoint savings opportunities.
• Compare plans regularly: Don’t overpay; electricity providers often update pricing.

Many Texans overpay for electricity. See if you can save — let Utilities Now compare rates for you today.

The Solar Option: Lowering Bills With Renewable Energy

With abundant sunshine across the state, many Texans are turning to solar panels as a way to reduce or eliminate their energy bills.

• Long-term savings: After the upfront cost, solar can dramatically reduce monthly bills.
• Incentives and credits: Texas offers tax breaks and net metering to improve ROI.
• Clean energy: Use the sun, not the grid, during high-demand months.

If you’re in a deregulated market and have rooftop space, installing solar can pay off within 6–10 years, depending on your home’s location and energy usage.

A Clear Picture of Texas Energy Costs

The average electric bill in Texas is higher than the national average due to high energy usage, but Texans still enjoy access to competitive electricity rates and flexible energy plans. By understanding what drives your energy consumption and taking steps to reduce it, you can lower your bill and keep your home comfortable year-round.

FAQ

Texans often ask what drives their monthly bill and how to reduce their average electricity usage. Here are the most common questions:

Why is the average electric bill in Texas $163.72?

Texas has high electricity consumption due to large homes, widespread use of air conditioning, and hot summer weather. While electricity rates in Texas are lower than the national average, high usage drives up monthly bills. Shopping around for better energy rates can mitigate costs.

Is $150 a month high for electricity in Texas?

Not necessarily. $150 is below the statewide average. However, if you live in a smaller home or apartment, it may indicate inefficiencies or higher-than-average usage.

What is a normal electric bill for a two-bedroom apartment in Texas?

On average, a two-bedroom apartment in Texas has a monthly electric bill of about $84, assuming moderate kWh usage and typical weather conditions.

How can I lower my Texas energy bill?

Use smart thermostats, seal air leaks, upgrade to energy-efficient appliances, and consider switching to a fixed-rate electricity plan. Comparing energy providers regularly helps ensure you’re getting the best rate.

Is electricity more expensive in Dallas or Houston?

Both cities operate in a deregulated market, so electricity prices depend on your plan and provider, not just location. Houston tends to have slightly higher summer demand, which can lead to higher bills if usage isn’t managed.