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 |
Compare & Shop Electricity Rates in Texas
Texas has a deregulated electricity market. This means residents can choose their electricity supplier and shop for the cheapest rates available. Your local utility still delivers power to your home, but you pick who generates it — and at what price.
How to Find the Lowest Rates in Texas
- Compare suppliers: Visit Texas's Public Utilities Commission website for approved electricity suppliers and current rate offers.
- Fixed vs. variable rates: Fixed-rate plans protect you from price spikes. Variable rates may start lower but fluctuate with the market.
- Check contract terms: Watch for early termination fees, promotional rates that increase, and monthly service charges.
- Consider solar: Rather than switching suppliers year after year, solar panels generate electricity at a fixed cost for 25+ years — often the cheapest long-term option.
The current average rate in Texas is $0.13/kWh. By comparing suppliers or going solar, many Texas homeowners cut their monthly bill from $108 to under $32 per month.
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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