Average Electric Bill in Houston: 2025 Costs, Rates & Money-Saving Guide
If you live in Houston and find your electric bill higher than a friend’s in Dallas or Austin, you’re not imagining it. Houston’s average electric bill is one of the highest in Texas. In 2024, residents are paying about $207 a month, that’s roughly 18% more than the state average. Knowing what drives these costs and what you can do about them can help you take charge and potentially save hundreds every year.
Houston’s scorching summers, sticky humidity, and how utilities charge mean electricity costs add up fast. But here’s the silver lining: Texas’s deregulated energy market gives you more control than you might think. Whether you want to switch providers, check out solar, or just make sense of your bill’s details, this guide breaks down what you need to know to manage your Houston electric bills in 2025.
Understanding Houston's Average Electric Bill: The Numbers You Need to Know
Understanding Houston's Average Electric Bill: The Numbers You Need to Know
On average, Houston homes use about 1,574 kilowatt-hours (kWh) each month. That’s well above the Texas average (1,132 kWh) and the national average (899 kWh). More electricity used means a heftier bill. Typically, Houston residents pay between $190 and $220 monthly, depending on the season and which energy plan they pick.
Electricity costs about 16.7 cents per kWh in Houston on average. But your bill often reflects 17 to 18 cents per kWh once delivery fees and other charges join the party. That difference seems small until you remember you’re using over 1,500 kWh a month.
How Houston Stacks Up to Other Texas Cities
Houston’s electric bills regularly come in higher than cities like Dallas and Austin. Dallas households average $175 a month. Austin’s closer to $160. Even San Antonio, where the market isn’t deregulated, pays around $145. Fort Worth sits in the middle at about $180.
Why the gap? Houston’s coastal location brings high humidity, which forces air conditioners to work overtime. Plus, many Houston homes are bigger, often more than 2,500 square feet, meaning more space to cool and power compared to the smaller homes common elsewhere in Texas. If you’re curious about how solar panels in Austin compare to Houston installations, location-specific factors play a big role.
Seasonal Shifts and When Usage Peaks
Houston’s electric use follows a clear pattern. Summer hits hard, with usage often topping 2,000 kWh from June through September. July and August are usually the busiest months. With AC running up to 70% of total electricity use, bigger homes can see bills shoot past $300 in the summer.
Winter tells a different story. From November through February, energy use drops to 800-1,200 kWh. Houston’s mild winters keep heating costs low compared to northern states. Spring and fall are your sweet spot for lower bills, many households see use dip below 1,000 kWh during
Get A Free Solar Consultation
Breaking Down Your Houston Electric Bill Components
Energy Charges vs. Delivery Fees
Your Houston electric bill has two major parts that often confuse people: energy charges and delivery fees. Energy charges pay for the power you actually use and go to your retail electric provider (REP). This is usually 60-65% of your bill and where picking a good rate matters most.
Delivery fees go to CenterPoint Energy, the company that manages the power lines, meters, and infrastructure bringing electricity to your home. These charges add about 4.73 cents per kWh plus a monthly base fee of $4.79. Delivery fees don’t change no matter which provider you use. Suntria helps customers understand these fixed fees when comparing plans.
Delivery fees cover several pieces: moving power from plants to substations (transmission), neighborhood power lines (distribution), and metering your usage. Knowing this helps explain why even the best energy rates don’t mean rock-bottom bills.
Taxes and Other Fees
On top of energy and delivery costs, your bill includes taxes and fees adding 8-10% more. The biggest is the Gross Receipts Reimbursement (GRR) tax, about 1.997% of your bill, which compensates providers for state taxes on their revenue.
The Public Utility Commission Assessment (PUCA) is a smaller fee at 0.1667%. Some providers tack on a Monthly Service Fee or Customer Charge, usually between $5 and $15 to cover billing and customer support.
If you live inside Houston city limits, municipal franchise fees add 1-2%. These fees pay the city for letting utilities use public areas for power infrastructure. Sometimes these fees are bundled into rates, other times listed separately, making side-by-side cost comparison trickier.
Fixed-Rate vs. Variable-Rate Plans
Fixed-rate plans lock in your energy rate for a set term usually 6, 12, or 24 months. They give you peace of mind, shielding you from sudden price jumps. Right now, fixed rates go from 11 to 15 cents per kWh, depending on the term and provider. Longer contracts tend to be cheaper but watch out for early termination fees if you switch providers before it ends.
Variable rates change with wholesale energy prices. You might save money when prices dip, but Houston’s extreme summers mean big spikes in wholesale costs. If you go variable, your bill could jump during those heat waves. Variable plans have no long-term lock-in, but most Houstonians prefer the predictability of fixed-rate plans.
Some plans tie your rate to a market index plus a fixed fee (indexed plans). These require keeping an eye on market trends. Time-of-use plans charge more during peak hours and less off-peak, great if you can run appliances when prices drop.
What Drives Up Your Houston Electric Bill?
Home Size and Energy Use
How big your home is probably has the biggest impact on your bill. Apartments around 900 square feet use 750-900 kWh monthly, costing about $125-150. Small homes under 1,500 sq.ft. use roughly 1,000-1,200 kWh, racking up $165-200 bills.
Medium homes between 1,500 and 2,500 square feet consume 1,400-1,800 kWh, paying $230-300. Large homes over 2,500 sq.ft. are the biggest users, often hitting 2,000-3,000 kWh in summer and bills over $350.
Home size isn’t the whole story ceilings, multiple floors, and layouts matter too. Two-story homes usually sip more energy than one-story houses the same size. Vaulted ceilings and open spaces are harder to cool since cold air spreads out more and escapes easier.
Houston's Climate and AC Needs
Houston’s subtropical heat is a major factor. Summers regularly hit 90°F or higher, with humidity often above 70%. The heat index often climbs past 100°F, making your AC run nearly nonstop.
Humidity makes your AC work harder. It’s not just about cooling air but squeezing moisture out first. That extra duty bumps up energy use by 20-30% compared to drier places. Houston’s AC units run about 2,800-3,300 hours a year, while the national average is closer to 1,800 hours.
The urban heat island effect adds fuel to the fire. Concrete and buildings trap heat, making central Houston up to 5-7 degrees hotter than surrounding areas. So, folks downtown often pay more to keep cool than neighbors in leafy suburbs.
Older Homes and Efficiency Issues
Older Houston homes have energy leaks that tank efficiency. Houses built before 2000 often miss proper insulation, especially in attics where summer temps can get over 140°F. Poor insulation forces AC units to work 30-40% harder.
HVAC age matters, too. Without good upkeep, air conditioners lose 5% efficiency each year. A 10-year-old model might run at 75% efficiency. Old, inefficient 10 SEER units replaced with modern 16 SEER systems can cut cooling bills by up to 40%.
Single-pane windows let heat in and cooled air out. Leaky ducts which affect about 30% of Houston homes can waste 20-30% of cooled air before it hits your living room. Put it all together and an old, inefficient home can use twice as much power as a newer, tight one the same size.
Solar Energy: A Long-Term Solution for High Houston Electric Bills
What Solar Costs and Savings Look Like
A typical Houston solar panel system for a house using 1,574 kWh per month runs between $25,000 and $35,000 before incentives. System size, panel quality, and roof complexity all affect the price. But when you factor in incentives and long-term savings, solar panels can be worth it in Houston for most homeowners.
The federal tax credit covers 30% of installation costs, nudging a $30,000 system down to $21,000. Texas solar incentives and property tax exemptions can chip away at costs, too, depending on when and where you install.
Most Houston solar systems pay for themselves in 8-12 years. With panels lasting 25-30 years, that’s over 15 years of nearly free electricity. Monthly savings average $150-250, depending on your system size and how much sun you get. Over 25 years, you’re looking at $45,000-75,000 in total savings.
Net Metering and Buyback Programs
Texas doesn’t have statewide net metering, so rules vary by provider. Many Houston providers offer buyback credits for excess solar power sent to the grid, but rates are usually less than what you pay per kWh. Typical buyback rates are 7-10 cents per kWh compared to retail rates of 16-17 cents.
Some plans pay better up to 12-13 cents per kWh, but those usually come with higher base rates or longer contracts. Smart sizing means you use most power yourself rather than sending lots back to the grid at lower rates. Battery storage lets you keep excess power for nights or cloudy days instead of selling it cheap.
Finding the Right Solar Provider
Pick a local solar installer with solid Houston experience who understands storms, humidity, and roof types. Look for credentials like NABCEP certification and good Better Business Bureau ratings. At least three quotes help you compare prices and find the best value.
Financing matters, too. Cash purchases save the most long-term. Solar loans and financing options offer ownership benefits with manageable monthly payments. Solar leases and power purchase agreements (PPAs) need no upfront cost but save less overall and might complicate home sales. Suntria provides solar panel installation in Houston with unbiased solar consultations, helping homeowners compare options and crunch real numbers.
Practical Steps to Reduce Your Houston Electric Bill Right Now
Pick the Right Provider
Houston’s deregulated market has over 50 retail electric providers. This gives choices but also confusion. Picking wisely can trim your annual bill by 20-30%, saving $600-900.
Don’t just chase the lowest headline rate. Watch out for hidden fees, contract terms, and cancellation penalties. Some plans start low, then jump prices after a few months. Others wrap fees into higher rates but cost less overall. Gather your past year’s usage and crunch the numbers season by season.
Also, check customer service reviews. Reliable billing and quick support avoid headaches down the line. The Public Utility Commission’s complaint database and online reviews are good places to start.
Energy Efficiency That Pays Off
Small changes add up fast. Smart or programmable thermostats can cut cooling costs 10-15% by adjusting temps automatically. Keep your thermostat at 78°F when home and 82°F when away to balance comfort and savings through Houston’s long hot season.
Stop leaks around windows, doors, and ducts. Professional energy audits find sneaky spots wasting energy. Fixes like weatherstripping and duct sealing usually cost under $500 and can cut cooling bills 15-20%. Savings often cover the cost after just one summer.
Switch to LED bulbs throughout your home. Replacing about 20 bulbs saves roughly $150 per year. Plus, LEDs give off less heat, so your AC doesn’t have to work as hard. Motion sensors on lights you forget help save more. Lighting upgrades alone can shave 5-8% off total use.
When to Switch Providers
Timing your switch right is key. Start shopping 14-30 days before your current contract ends to avoid penalties and catch the best deals. Set calendar reminders so you don’t miss this window.
Spring and fall usually bring lower rates; locking in a plan then gives you a better price for the summer heat. Avoid signing new contracts during heat waves when prices spike.
Keep an eye on market shifts from weather, fuel costs, or new renewables. Sometimes it pays to switch mid-contract despite fees, especially if your bill is high.
Taking Control of Your Houston Electricity Costs
Knowing how your Houston electric bill works gives you the upper hand in cutting costs. Switching providers, investing in efficiency, or adding solar all pay off if you pick what fits your lifestyle and home.
Combining smart provider choices, efficiency upgrades, and solar can lower your bills by 30-50% over time. Start small, compare providers, seal leaks, then move to bigger investments like new HVAC or solar when ready. Each step chips away at your bills and builds energy independence.
Remember, Houston’s deregulated market puts power in your hands. Stay informed, watch your usage, and review your options regularly. If solar sounds appealing or you want expert help trimming your bills, Suntria’s energy consultants are ready to guide you. Take that step today, your wallet and the planet will thank you.
Average Electric Bill Houston Frequently Asked Questions
What's the typical electric bill for a 2-bedroom apartment in Houston?
A 2-bedroom apartment around 1,000 sq.ft. uses roughly 880-950 kWh monthly. That means bills between $145 and $165, but summer months can push it to $200-$220 due to AC. Apartments usually pay less than houses because shared walls and smaller spaces cut cooling needs.
How does Houston's electricity rate compare to the rest of Texas?
Houston’s average rate is about 16.7 cents per kWh, around 18% above the Texas state average of 14.2 cents. Delivery fees, local taxes, and older housing all push rates higher. Dallas and Austin hover around 14-15 cents, so finding the right plan and saving on efficiency is crucial in Houston.
Can I install solar panels if I'm currently in an electricity contract?
Yes, you can install solar anytime, but check your contract. Most don’t block installations, but you’ll keep paying monthly minimum charges until the contract ends. Timing installation near contract expiration helps you switch to a solar-friendly plan that gives the best buyback rates.
Why are CenterPoint delivery charges so high?
CenterPoint Energy maintains 27,000 miles of power lines and deals with frequent storms affecting Houston. Delivery fees fund repairs, upgrades, and storm hardening. At about 4.73 cents per kWh plus base fees, these charges don’t change with your provider. Knowing this helps you focus on controlling the parts of your bill you can impact.
What size solar system do I need for an average Houston home?
A typical Houston house using 1,574 kWh a month needs around an 11-12 kW solar system to cover most of its electricity yearly. That’s about 28-32 panels depending on efficiency and roof space. Energy-efficient homes might only need 8-9 kW. Suntria’s solar experts for homeowners help size systems based on usage and roof details.
How much can I save by switching providers in Houston?
Switching providers can save Houston households $400-$800 a year. The biggest wins come moving from variable or month-to-month plans to locked-in fixed rates. Even switching between fixed plans can cut 2-3 cents per kWh, saving $30-$50 monthly. Look beyond rates factor in fees and contract terms.
Do solar panels increase my property value in Houston?
Yes. Solar panels typically bump Houston home values by 3-4%, adding $12,000-$15,000 to median-priced homes. Thanks to Texas property tax exemptions, this won’t increase your tax bill. Plus, homes with solar sell faster about 20% quicker than those without.
What are demand charges and do they apply to residential customers?
Demand charges bill for highest peak usage and usually affect only businesses in Houston. Some residential time-of-use plans include demand pricing during peak hours. These might benefit homes that can shift usage but can raise bills for typical patterns. Most residential customers avoid demand charges by staying on traditional fixed or variable plans.
Written by: Ricardo Rodriguez