What drives electric bills in Texas
Residential electricity in Texas averaged 16.1¢ per kWh in January–July 2026, up 5.7% from 15.2¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 15.9¢. The typical home here used 1,096 kWh a month in 2024, 27% more than the U.S. average, so how much power you use matters as much as the price.
- Your plan’s fine print. Many Texas plans have usage credits or tiers that only work in a narrow kWh range. A plan advertised at 10¢ per kWh can cost much more if your usage falls outside that range.
- Expired contracts. When a fixed-rate contract ends, most providers move you to a month-to-month variable rate that is usually much higher.
- Long, hot summers. Air conditioning can account for more than half of a summer bill. The Texas grid, run by ERCOT, also sees its highest prices on summer afternoons.
Who supplies your power
In areas open to competition, such as Houston, Dallas–Fort Worth and Corpus Christi, Oncor, CenterPoint, AEP Texas and TNMP own the lines and you buy power from a retail electricity provider. Austin Energy, CPS Energy in San Antonio, El Paso Electric and many co-ops serve areas without retail choice.
Ways to pay less in Texas
- Compare plans on Power to Choose, the official state site, and read each plan’s Electricity Facts Label. Check the average price at your actual usage, not just at the advertised 1,000 kWh.
- Set a reminder for 30 days before your contract ends. You can usually switch without a fee in the last two weeks.
For example, a 1,500 W space heater running 8 hours a day costs about $59 a month at Texas prices. Check what your appliances cost to run in Texas.
Shopping for a cheaper plan in Texas
Texas lets many homes choose who supplies their electricity. Before you switch, compare offers at your own usage, not just the advertised price: at the 1,096 kWh a typical home here uses, every 1¢ per kWh is worth about $132 a year. Prefer fixed-rate plans of 12 months or more, check the early cancellation fee, and note when the contract ends.
Compare plans on Power to ChooseHelp paying your bill in Texas
- Comprehensive Energy Assistance Program (CEAP): the Texas LIHEAP program, run by TDHCA through local agencies, helps with heating and cooling bills.
- Deferred payment plans: Texas electricity providers must offer payment plans in extreme weather and to customers with medical needs. Ask your provider for one before falling behind.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Texas?
A typical 7 kW rooftop system in Texas produces roughly 10,150 kWh a year, about 77% of what an average home here uses. At the state’s average price of 16.1¢, that power is worth about $1,630 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Texas compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Texas | 16.1¢ | 1,096 | $176 |
| Louisiana | 13.4¢ | 1,202 | $160 |
| Oklahoma | 13.6¢ | 1,079 | $147 |
| Arkansas | 13.6¢ | 1,048 | $143 |
| New Mexico | 15.1¢ | 654 | $99 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.