Harnessing Energy Efficiency in Texas

Harnessing Energy Efficiency in Texas

Learn the major factors that can make or break your home's energy efficiency.

Thad Warren By Thad Warren

Texas, the 'Lone Star State,' is not just famous for its Alamo and BBQ; it's also renowned for being an epicenter of energy. Thanks to its deregulated energy market, Texans have the power to choose their electricity provider, leading to an array of options and competitive pricing. In such a dynamic environment, understanding energy efficiency becomes critical for Texans interested in cutting down on their energy bills and minimizing their carbon footprint. This blog post aims to provide a high-level overview of various factors impacting energy efficiency.

Energy Efficiency: An Introduction

Energy efficiency is not merely about using less energy; it's about achieving the same output using lesser energy. It's about innovation, adopting smarter technologies, and making informed decisions to reduce energy waste, save on electricity bills, and decrease greenhouse gas emissions.

Implementing basic energy efficiency measures can lead to substantial savings on your energy bills over time. While the actual amount varies based on specific usage, local energy prices, and the efficiency measures implemented, some estimates suggest the following:

  1. Lighting: Replacing traditional incandescent bulbs with energy-efficient LEDs can save between $75 to $100 annually.

  2. Thermostat: Installing a programmable or smart thermostat can help manage heating and cooling more efficiently, saving around 10% per year on heating and cooling costs, which equates to nearly $180 annually.

  3. Insulation: Properly insulating your home can result in a 15% reduction in heating and cooling costs, or an average savings of $200 per year.

  4. Appliances: Energy-efficient appliances like refrigerators, washing machines, and dryers can save between $35 to $75 a year per appliance.

  5. Windows: Energy-efficient windows can save you anywhere from $125 to $450 a year.

  6. HVAC System: An efficient HVAC system can save up to $115 per year.

  7. Standby Power: Unplugging electronics or using a power strip for devices that consume power even when turned off can save up to $100 per year.

Adding up these individual savings, a household implementing basic energy efficiency measures could potentially save hundreds, or even over a thousand dollars each year. The long-term savings are even more significant when you factor in the extended lifespans of energy-efficient appliances and bulbs. Moreover, many utility companies offer rebates and incentives that can further offset the upfront cost of these energy-efficient upgrades. In summary, becoming energy efficient is not only good for the environment, it's also great for your wallet.

Climate: A Major Influencer

The climate in Texas varies significantly, with coastal areas experiencing mild winters and humid summers and the panhandle enduring colder winters. These variations influence energy needs. For instance, air conditioning is heavily relied upon in the hot Texan summers, while heating needs spike in the colder regions during winters. Understanding the energy consumption patterns depending on the climate can lead to significant savings.

Size and Age of the House

The size and age of a house can substantially impact energy efficiency. Larger homes often require more energy for heating and cooling, and older homes may lack modern, energy-efficient insulation or appliances. Small, strategic changes, like improving insulation, upgrading to energy-efficient appliances, or using smart thermostats, can dramatically improve energy usage in these homes.

Behavior and Lifestyle

Personal behaviors and lifestyles also play a vital role. Simple changes like turning off lights when not in use, using energy-efficient LED bulbs, and regulating thermostat settings according to personal presence and absence can lead to substantial energy savings.

Setting your air conditioning (AC) unit to a slightly higher temperature during the hot Texas summer can lead to significant energy and cost savings. In a 2,000-square-foot home, the difference between setting your thermostat to 68 degrees Fahrenheit and 72 degrees can be substantial.

Energy Star, a U.S. Environmental Protection Agency program, suggests that for every degree you raise your thermostat over 78 degrees Fahrenheit, you can save around 6-8% off your home’s cooling energy usage. Therefore, increasing your thermostat from 68 degrees to 72 degrees, a 4-degree change, could reduce your cooling energy usage by approximately 24-32%.

The cost savings associated with this energy reduction can be significant, particularly over a whole Texas summer. Assuming the average cost of electricity in Texas is around 12 cents per kilowatt-hour (kWh), and an average central AC unit uses 3,000 to 5,000 watts (or 3-5 kWh) per hour, the cost savings can quickly add up. If your AC unit runs for 8 hours a day, you could be looking at savings between $26 to $43 per month, or between $78 to $130 over a typical three-month Texas summer, just by raising your thermostat setting by 4 degrees.

These savings also don't account for the additional environmental benefit of reducing energy consumption and the positive impact this can have on reducing greenhouse gas emissions.

Remember, every degree matters when it comes to cooling your home efficiently. Be mindful of your thermostat settings, as small changes can lead to substantial savings over time.

Energy Efficiency in Deregulated Energy Markets

In deregulated markets like Texas, where consumers can choose their energy provider, energy efficiency takes on another dimension. Several providers offer plans sourced from renewable energy or provide energy-efficient solutions like smart thermostats. When shopping for a provider, it's essential to not only compare prices but also consider the environmental impact and energy-saving measures they offer.

The Advantage of Renewable Energy Sources

Texas is a national leader in wind energy production and also has considerable solar power potential. Renewable energy sources like these provide a cleaner, more sustainable alternative to traditional fossil fuel-based energy. Choosing energy plans that leverage these renewable sources can help Texans reduce their carbon footprint significantly.

Thanks to marketplace competition there are many 100% green plans that are the same price or even cheaper than traditional brown energy plans. 

You can find green plans here - just look for the leaf icon. 

Energy Star and Energy Efficiency

Energy Star, a U.S. Environmental Protection Agency voluntary program, helps businesses and individuals save money and protect our climate through superior energy efficiency. Purchasing appliances and products that are Energy Star-certified ensures they meet strict efficiency criteria, leading to savings in the long run.

Energy Efficiency Rebates and Incentives

Several utility companies in Texas offer rebates and incentives for consumers who make energy-efficient home improvements. Such programs can offset some costs associated with upgrading appliances, HVAC systems, or insulation.

There are millions of dollars in energy incentives allocated to help Texans reduce their energy usage and become more energy efficient. You may have heard about incentives for solar and EVs but there are credits for just about anything you can think of. 

Windows, doors, insulation, dishwashers, and the list goes on and on. If you're savvy you could save yourself a ton of money while getting the latest and greatest technology for your home. 

You can find thousands of incentives in our database here

Efficiency and Technology: Smart Homes

Smart home technology can significantly contribute to energy efficiency. Tools like smart thermostats, energy-efficient appliances, and home energy management systems can automate energy savings, making it easier than ever for Texans to reduce their energy consumption.


Becoming more energy-efficient in Texas is a combination of understanding your personal energy use, making informed decisions when selecting an energy provider, and investing in energy-efficient technologies. It's not just about saving money on energy bills but also about taking a step towards a sustainable future. Texans are at the helm of this transition, holding the power to make impactful decisions.