Electricity Rates in Texas
Average residential electricity cost, utility comparison, and solar savings potential for Texas homeowners.
Texas Electricity Cost Overview
The average residential electricity rate in Texas is $0.13 per kWh, which is 19% below the national average of $0.16/kWh.Texas homeowners pay an average of $108 per month for electricity, based on typical usage of 833 kWh per month.
Texas electricity rates fluctuate significantly due to its deregulated market and seasonal demand spikes. Summer rates can surge during heatwaves, making fixed-cost solar an appealing hedge against price volatility.
Major Electric Utilities in Texas
| Utility Company | Avg Rate ($/kWh) | Customers | Est. Monthly Bill |
|---|---|---|---|
| TXU Energy | $0.13 | 1.5M | $108 |
| Reliant Energy | $0.12 | 1.3M | $100 |
| Direct Energy | $0.13 | 800K | $108 |
Texas has a deregulated electricity market, which means you can choose your electricity supplier. Shopping for a competitive rate can lower your bill.
How Solar Compares to Texas Electricity Rates
Without Solar
- Monthly bill: $108
- Annual cost: $1,296
- 25-year cost: $32,400
- Rate trend: Rising 2-5% annually
With Solar
- Monthly savings: $91
- Annual savings: $1,092
- 25-year savings: $38,000
- Rate: Locked in for 25+ years
Electricity Rates FAQ - Texas
The average residential electricity rate in Texas is $0.13 per kilowatt-hour (kWh), which is 19% below the national average of $0.16/kWh. The average monthly electric bill is approximately $108.
With solar panels, Texas homeowners can reduce their electricity costs by approximately 84%, saving around $91 per month or $38,000 over 25 years. The 30% federal tax credit further reduces the upfront cost.
The largest electric utilities in Texas include TXU Energy, Reliant Energy, Direct Energy. Rates vary between utilities, so your exact cost depends on your provider and usage.
Yes, electricity rates in Texas have been increasing over time, following national trends of 2-5% annual increases. This upward trend makes solar panels an increasingly attractive investment since they lock in your energy costs for 25+ years.
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