The average residential electricity rate in Texas (TX) is $0.1618 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is significantly below the national average of $0.1805/kWh, ranking Texas #28 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average Texas household consumes 1,100 kWh per month, resulting in a monthly electric bill of approximately $178 and annual electricity costs of about $2,136.
Texas generates more electricity than any other state and is the undisputed leader in wind energy. The ERCOT grid operates independently from the rest of the US.
This comprehensive guide covers Texas electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
Texas residential electricity rates have increased 38% over the past six years. The table below shows the trajectory compared against the national average.
| Year | Texas ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1170 | $0.1322 | -11% |
| 2022 | $0.1380 | $0.1492 | -8% |
| 2024 | $0.1530 | $0.1680 | -9% |
| Apr 2026 | $0.1618 | $0.1805 | -10% |
Texas has a deregulated electricity market. The primary delivery utilities are: Oncor (delivery), CenterPoint (delivery), AEP Texas (delivery), 100+ Retail Providers.
Texas generates electricity from: Natural gas 42%, Wind 28%, Solar 12%, Nuclear 8%, Coal 7%, Other 3%.
Your monthly electric bill = kWh Used × Rate per kWh. The average Texas household uses 1,100 kWh/month.
Texas ERCOT market is fully deregulated. Shop at PowerToChoose.org for competitive rates. Fixed-rate plans from 8-12 cents/kWh are available. Avoid variable-rate plans that spike during heat waves. Always check the EFL for true all-in costs.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
Texas receives 5.5 peak sun hours/day. A 6 kW system produces ~9,877 kWh/year, saving ~$1,598/year. With the 30% federal ITC, payback is typically 6-9 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| Texas (TX) | $0.1618 | $178 | Deregulated |
| Arkansas (AR) | $0.1148 | $133 | Regulated |
| Louisiana (LA) | $0.1244 | $156 | Regulated |
| New Mexico (NM) | $0.1378 | $108 | Regulated |
| Oklahoma (OK) | $0.1178 | $137 | Regulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.