Everything’s bigger in Texas — including our residential and commercial electricity bills. As one of the largest and most populous states in the US, Texas produces a lot of energy via wind and oil, but it also consumes a ton of energy, too.
Curious about why your average apartment electric bill is so high? Or what the average kWh usage is across different types of dwellings in Texas? Learn why the Lone Star State consumes so much energy, and what that means for your monthly bill.
Texas has the eighth highest electricity bills in the US. That sounds like an outrage at first blush, but Texas actually has low energy rates. We average 11.82 cents per kWh. Compared to Connecticut, which charges a whopping 22 cents per kWh, Texas’ rates are quite low.
That’s because Texas ranks at 31st in the nation when it comes to average kWh rates. But a typical Texas electric bill is $140/mo for 1,170 kWh. Why are our bills so high compared to other states?
Blame the harsh Texas summers that drive up your energy costs. Texans have to run the AC almost year-round, leading to high energy bills. Texans in the panhandle face their fair share of bitter winters, too, which means even higher electricity bills during the bitter cold months. Since everything, including our homes, are bigger in Texas, we also have to use more energy to effectively heat and cool our homes and offices.
Your average apartment electric bill will vary based on where you live in Texas. Some cities have deregulated energy where consumers can choose their utility provider, while other cities regulate where you can buy energy. If you lived in Houston, for example, your bill would be in the $150/mo range, while residents and business owners pay around $110/mo.
These 5 factors will affect how much you can expect to pay for electricity in Texas.
Government regulations have a huge impact on electricity prices. Some cities, like San Antonio, regulate how much utility companies can charge, as well as where citizens can buy electricity.
But in true untamed Texas fashion, most of the state is unregulated. Unless you live in a regulated city, you can shop around a deregulated market and choose your energy provider. If this is the case, it’s important that you shop around regularly for the best electricity rates. Deregulation means you can pit utility companies’ quotes against each other, potentially scoring the lowest possible rate in your area.
Where does your electricity come from? If you’re like most folks in the Lone Star State, your energy comes from natural gas, coal, or wind. Wind is basically free, but the marketplace for non-renewable resources will dictate your average electric bill in Texas.
For example, if there’s a natural gas boom and prices are low, you’ll see better savings on your electric bill. But if it’s not a good year for natural gas — and there’s a limited supply — you’ll pay much more. It’s supply and demand economics in action: if it’s plentiful, you pay less.
Electricity companies are businesses, after all. They have operating costs that they need to cover, and they pass those costs right on to you, the customer.
… you’re paying for it in your monthly bill.
This is why it’s so important to choose a utility company that operates lean. The more efficient they are, the more you save. Always shop around for the most efficient utility company so you can reduce your electric bill in Texas.
Texans have a saying that goes, “If you don’t like the weather, just wait ten minutes and it’ll change.” That’s hyperbole, but it’s not far-off to say that Texas has some extreme weather. And extreme weather can increase your average electric bill in Texas.
If there’s a heatwave, you’ll pay more because of energy demand spikes during that time. Because extreme temperatures push up demand, fuel prices increase, and your electricity bill increases, too.
While we could blame regulations and high fuel costs for your electricity bill, consumption has a lot to do with it, too. When you use more energy, you have to pay for it.
The size and age of your space will affect your usage (and bill), too. Newer construction tends to be more energy-efficient, while older buildings leech electricity. The same is true for size: larger homes need more electricity.
Here’s a breakdown of the average monthly electric bill in Texas for different dwellings:
Type of Building
Average Monthly kWh Used
Average Monthly Electric Bill in Texas
|Small House||1,200 kWh||$150-$300|
|Large House||2,400 kWh||$300+|
|Small Office (i.e. Law Office)||2,000-4,000 kWh||$0-$500|
|Small Business (i.e. Gas Station)||5,000-10,000 kWh||$500-$1,000|
|Medium Business (i.e. Large Restaurant)||20,000 kWh||$1,000-$3,000|
|Large Business (i.e. Mid-size Hotel)||65,000 kWh||$3,000-$8,000|
|Extra Large Business (i.e. Manufacturing Facility)||200,000 kWh||$8,000-$25,000|
|Enterprise (i.e. Large Cold Storage Facility)||300,000+ kWh||$25,000+|
As you can see, different types of homes and other buildings have a significant impact on average electric bills in Texas. You may also consider that seasonal behaviors also lead to different monthly averages. In the summer, for example, the kids are home more often and may be plugged in to their TVs, tablets, and other electronics. Higher temperatures also mean your AC units are working hard to provide comfort indoors. And lastly, pools use a lot of energy which leads to higher bills.
Nobody wants to say “Howdy” to higher electricity bills, but it’s just the reality of living in Texas. Enjoy a cold Lone Star in front of the TV, blaring the AC, but remember that it all comes at a price. Understand your average electric bill in Texas and all the factors that can raise or lower it.
Curious if you could save more? Check out EnergyBot. We help Texans find the best energy provider in their area to save more money on electricity.
Average electric bills in Texas vary depending on where you live or work. In this article, we'll dive into the factors that affect your bill and what you can do to help control your electricity costs.
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