How to Lower Your Texas Electric Bill: Proven Savings Tips

Most Texas households overpay for electricity because of their rate, not their usage. The average Texas family uses 1,096-1,176 kWh per month.^[1] At 10¢/kWh versus 14¢/kWh, that is a $48 monthly difference—$576 per year.

Check your current rate on your electric bill. Find the supply charge per kWh. Compare it to rates at ElectricRates.org or Power to Choose. If rates in your area are 2+ cents lower than what you pay, switching providers is your fastest path to savings.

Switching takes about 10 minutes online. Your power never goes out during the transition. Most savings happen because people stay on old contracts or default rates that cost 15-20¢/kWh when competitive rates run 8-11¢/kWh.

Before shopping for plans, know your usage pattern. This matters because many plans have tiered pricing or bill credits tied to specific usage levels.

Pull your last 12 months of bills and calculate your average monthly usage. Texas households average 1,096-1,176 kWh/month, but this varies dramatically. Apartments might use 500-700 kWh. Large homes with pools hit 2,000-3,000 kWh in summer.

For precise data, register at Smart Meter Texas. Your smart meter records 15-minute interval usage. This tells you when you use power, not just how much—critical for evaluating time-of-use plans like Free Nights or Free Weekends.

Here is where most Texans go wrong. They compare plans at a standard benchmark—whether 500, 1,000, or 2,000 kWh—instead of their actual usage. Your home does not use a benchmark.

Many plans include bill credits requiring minimum usage. A plan showing 8.9¢ at 1,000 kWh might cost 21.8¢ at 500 kWh because the $125 credit only applies when you hit the threshold. Miss it by one kWh and your effective rate more than doubles.

The Electricity Facts Label (EFL) shows rates at 500, 1,000, and 2,000 kWh—but none of these may match YOUR usage. The solution is shopping with your actual usage history from Smart Meter Texas, or use ElectricRates.org which calculates your cost based on the usage you enter—not a benchmark.

Found a better rate? Switching is simple.

You will need your ESI ID (17-22 digit number on your bill), service address, and basic contact info. Enrollment takes about 10 minutes online.

Before switching, check your current contract. Early termination fees range from $0 to $300 depending on your plan. Many contracts let you switch without penalty in the final 14 days. Calculate whether the savings outweigh any ETF—often they do within a few months.

The switch happens within 1-2 billing cycles. Your new provider handles everything. Your power stays on continuously. The only change is the supplier name and rate on your next bill.

After locking in a better rate, tackle usage reduction. These strategies compound your savings.

Thermostat optimization delivers the biggest impact. Set your AC to 78°F when home, 85°F when away. Each degree cooler costs 3% more. A programmable or smart thermostat automates this, saving $100-$150 annually.

Seal air leaks around doors, windows, and outlets. The average Texas home leaks enough air to leave a window open year-round. Weatherstripping and caulk cost under $50 and cut cooling costs 10-20%.

LED lighting uses 75% less energy than incandescent bulbs. Replacing 20 bulbs saves $50-$100 per year. LEDs last 15-25 years.

Five appliances dominate most Texas electric bills: AC, water heater, dryer, refrigerator, and pool pump (if you have one).

AC maintenance is essential. Change filters monthly during summer. Dirty filters make your system work 15% harder. Annual professional tune-ups cost $75-$150 and catch refrigerant leaks or failing components before they spike your bill.

Water heater settings default to 140°F but 120°F works fine for most households. This single adjustment saves $36-$60 annually. Insulating your water heater tank adds another $20-$45 in savings.

Pool pumps are electricity hogs. Running your pump 6 hours daily instead of 12 cuts that cost in half. Variable-speed pumps reduce consumption by 80% compared to single-speed models.

Some Texas plans charge different rates at different times. Free Nights plans charge zero from 9pm-6am but higher rates during daytime. Free Weekends plans charge zero Saturday-Sunday.

These plans work for specific people. Night owls who run major appliances after 9pm can save significantly. EV owners who charge overnight benefit. But daytime workers using AC while away often pay more overall.

Check your Smart Meter Texas data to see when you use power. If 40%+ of your usage happens during free periods, time-of-use plans might work. If not, a flat-rate plan usually costs less.

Texas electricity bills peak in summer when AC runs constantly. Average August bills hit $200-$300 compared to $100-$150 in April.

Before summer: Get your AC serviced, seal air leaks, and install window film or solar screens. These block 40-70% of heat before it enters your home.

During summer: Use ceiling fans (costing 1¢/hour versus 30¢/hour for AC), close blinds during peak sun hours, and avoid using the oven—it heats your whole kitchen.

Before winter: Reverse ceiling fan direction to push warm air down. Check attic insulation. In Texas, you want at least R-38 insulation (about 12 inches of fiberglass).

These cost more upfront but deliver ongoing savings.

Smart thermostat ($150-$250): Saves 10-15% on heating and cooling by learning your schedule and adjusting automatically. Pays for itself in 1-2 years.

Attic insulation upgrade ($1,500-$3,000): If your home is under-insulated, adding insulation cuts cooling costs 15-25%. Payback period is 3-5 years.

Solar panels ($15,000-$25,000 before incentives): The 30% federal tax credit and Texas net metering policies can make solar economical. Payback periods run 6-10 years. Some Texas providers offer solar buyback plans at retail rates.

Some common advice wastes more money than it saves.

Do not leave your AC running while away hoping it will "use less energy" maintaining temperature. Set it to 85°F when gone. Modern systems cool efficiently when you return.

Do not buy "energy saving" devices that plug into outlets and claim to reduce bills. These are scams. Real savings come from efficiency and rate shopping, not magic boxes.

Do not ignore your contract expiration. Many providers auto-renew at rates 30-50% higher than market. Mark your calendar 30-45 days before expiration to shop for a new plan.

Here is the priority order for maximum impact.

Week 1: Check your current rate. Compare to market rates at ElectricRates.org. If you can save 2+ cents/kWh, switch. Estimated savings: $200-$400/year.

Week 2: Set thermostat to 78°F home, 85°F away. Install a programmable thermostat if you do not have one. Estimated savings: $100-$150/year.

Week 3: Change AC filter. Seal visible air leaks around doors and windows. Estimated savings: $50-$100/year.

Month 2+: Replace remaining incandescent bulbs with LEDs. Consider water heater temperature reduction. Schedule AC maintenance before summer. Estimated additional savings: $50-$100/year.

Total annual savings potential: $400-$750 for the average Texas household.