What Is The Average Electric Bill in Houston [2024 Updated]

In Houston, a monthly utility bill typically costs $515.70. Your monthly utility bill could vary depending on the size and age of your house or apartment, which can affect things because larger homes need more energy to power them, and newer homes are typically more energy-efficient. According to the data released by the Bureau of Labor Statistics in July 2024, the average monthly electricity rates and consumption in Houston, Texas are 18.40 cents/kWh, 1,178 kWh a month, or 14,136 kWh a year. 

Note: The exact average monthly bill of each utility might vary depending on the kWh usage per month.

What Is An Average Electric Bill in Houston Summer?  

According to the data released by the Bureau of Statistics in July 2024, the average monthly electricity bill in Houston, Texas is $216.75, with significant spikes in demand every summer and winter. Almost all homes with air conditioning use electricity as their primary cooling source during the summer.  

Utility companies increasingly offer time-of-use plans, charging more during peak electricity hours but providing cheaper service during off-peak hours. Peak demand in Texas happens during the busiest hours, usually from 1 to 7 p.m. For residents and business owners in Texas, these are the best times to buy electricity. The highest electricity demand occurs during peak hours on weekday evenings, while off-peak periods are at night and midday when demand is generally lower.

An HVAC is likely to consume a significant amount of electricity. Not only does it consume a lot of electricity, but it is usually on for several hours or even all day. Other factors, such as the size of the home, Climate, efficiency of appliances, and the number of occupants, influence your home’s electricity usage. The summer heat in Houston causes ACs to run for an extended duration. This increases the use of electricity, eventually raising the cost of electricity during these months.

What Are The Houston Electricity Rates?  

The electricity tariff is the rate at which electrical energy is sold to a customer. However, it should include the total cost of electricity and the power company's profit. Currently, the cheapest Houston electricity rate is 10.9 ¢/kilowatt-hour (kWh), which is approximately 29% less than the average Texas energy rate. On the other hand, the highest rate is 17.1 ¢/kilowatt-hour (kWh).

Here are the current Houston electricity rates:

Source: Texas Public Utilities Commission

Electricity rates in Houston vary depending on your location, mainly due to transmission and distribution fees charged by local utility companies for delivering energy to your home. A free marketplace can help you find and choose the best electricity rates in Houston. You can compare electricity rates from the best energy providers in your area, filter by needs and priorities, and sign up for a plan.

You will be offered several options when selecting an energy supplier in Houston. To help you choose the best plan for you, the majority of companies in Houston have provided an overview of the various options along with an analysis of their pros and cons.

Fixed-Rate Plans

A fixed-rate plan does not imply that your electric bill will remain constant every month. Rather, you will pay a fixed rate per kilowatt-hour. As a result, your overall bills will remain higher during the months when you use the most electricity.

Pros

Even if the energy costs rise, the rates will remain locked in. This will allow you to have a clear idea when it comes to budgeting.

Cons

You could be charged an early termination fee (ETF) if you cancel the plan early. If you move to a new address outside of the service area, you won’t be charged an ETF. There is also the chance that some fixed-rate plans may turn into variable-rate plans after the contract expires.

Variable-Rate Plans

Instead of paying in a locked long-term contract, a variable-rate plan allows you to pay month-to-month. These plans are based on the variables in the market and the prices/kWh may vary depending upon supply and demand.

Pros

Depending on the price of energy, some months the customers may pay less per kWh if the prices drop.

Cons

Sometimes, the climate conditions and other factors can drastically increase the price of electricity. In cases such as this, the variable-rate plans can be risky.

No-Deposit and Prepaid Energy Plans

Depending on the credit score of a customer, some companies may offer a no-deposit electricity plan option to save from the initial deposit to protect REPs. In the case of a low credit score, you can go with a prepaid plan to pay for a set amount of electricity, track electricity usage online, and reload the account.

Pros

Saves from the initial deposit are used to protect REPs, and one can have total control of the expenditure.

Cons

Once you reach the electricity threshold, the power will be cut automatically. Compared to other plans, this plan has a higher rate per Kwh.

Green Energy Plans

These supply electricity from wind and solar energy in Houston, Texas. Some REPs come with a Green-e verification certificate to ensure that the electricity is responsibly generated and distributed.

Pros

It uses renewable energy, allowing you to support clean energy without large investments in green energy.

Cons

It might be a bit more costly than the non-renewable plan. Since not all companies yet offer green energy plans, you will have a limited option to choose a provider.

Business Energy Plans

This plan may be considered for commercial energy, as not all REPs will provide it. In addition to corporations, industrial and government buildings, schools, and churches may also need business energy plans.

Pros

Many business energy plans offer discounts that may help businesses save money on their electricity bills.

Cons

These plans often require businesses to enter into long-term contracts, hence limiting their flexibility to switch to other options.

What Factors Affect The Average Electric Bill in Houston?

Houston energy costs normally peak in the summer and then start to decline as the temperature drops. Multiple factors influence the amount you pay each month for your energy bill.

Weather and Climate

Air conditioners run nonstop to keep rooms cool and comfortable as the temperature rises. Heatwave length and intensity have a big influence on how much energy is used. You'll pay more if there's a heatwave because of spikes in energy demand.

Energy Efficiency

An optimally insulated home puts less stress on cooling systems, which lowers total energy consumption. This will reduce the amount of energy required to cool your home.

Fuel Costs

Electricity must first be produced from a renewable source before it can be delivered to your home. You may notice a fuel or power charge on your monthly bill because fuel prices are subject to fluctuations. This monthly fee allows it to absorb cost variations without having to adjust its electricity rates constantly.

Seasonal behaviors

You may also consider that seasonal behaviors result in different average electric bills. During the summer, for example, the children are more likely to be at home and use their tablets and other electronic devices. Higher temperatures also indicate that your air conditioners are working consistently to provide comfort indoors.

How to Lower Your Electric Bills?

Houses in Houston vary in size, age, and large appliances. Even when these factors are held constant, different households consume varying amounts of energy. Your electricity bill may increase depending on the way you use your appliances and how frequently you use them. These are some ways that may help to reduce your electricity costs.

Invest in Energy-Efficient Appliances

Examine energy ratings if it's time to replace your vacuum cleaner, tumble dryer, refrigerator, or washing machine. Though the rating will assist you in selecting the most efficient model, modern appliances are far more efficient than older models. Approximately 75% less energy is used by energy-efficient bulbs than by conventional incandescent ones.

Insulation

Households can save anywhere from 10 to 45% on their annual electricity bills by adding insulation. Attic insulation, air sealing, and floor and crawl space insulation will keep your home warm in the winter and cool in the summer.

Invest in Jackery Solar Generators for Clean Energy

Investing in clean, renewable solar energy is one of the best ways to reduce electricity costs. An efficient renewable energy source is the Jackery Solar Generator 3000 Pro. It can charge 99% of indoor and outdoor appliances in the event of a power outage or when living off the grid.

Jackery Solar Generators for Lowering Electric Bills

Jackery is a prominent global brand that specializes in manufacturing portable power stations, solar generators, and portable solar panels. These are not only tailored for indoor uses but offer a sustainable and eco-friendly solution for charging appliances, serving as an emergency backup, and saving electricity costs.

By implementing Jackery Solar Generators in your home setup, you can reduce your dependency on conventional energy sources. This offers the advantage of potentially reducing your electricity bills. Solar generators can be particularly used during daylight hours to charge big appliances. This transition has the potential to convert into tangible savings on your average electricity bills.

Jackery Solar Generator 3000 Pro

With an impressive capacity of 3024 Wh, the Jackery Solar Generator 3000 Pro can power up to 99% of appliances. Even in climates as low as -20°C / -4°F, it remains fully functional, providing uninterrupted power during outages. Ultimately, it offers convenience, reduces reliance on grip electricity, and allows substantial savings on electricity bills over time.

Jackery Solar Generator 2000 Plus

The Jackery Solar Generator 2000 Plus has a leaping performance that empowers heavy-duty devices and can handle loads of up to 6000W. It features a LiFePO4 battery with a 10-year lifespan. It is primarily utilized for emergency home backup, ensuring that appliances remain operational during power outages. By reducing dependency on conventional electricity, the Jackery Solar Generator 2000 Plus leads to significant savings on electric bills.

Jackery Solar Generator 2000 Plus Kit (4kWh)

The Jackery Solar Generator 2000 Plus Kit combines the portable 1*Jackery Explorer 2000 Plus Portable Power Station, 1*Jackery Battery Pack 2000 Plus, and two foldable Jackery SolarSaga 200W Solar Panels. It has a LiFePO4 battery capacity of 4085.6 Wh to charge 99% of household appliances in Houston. Thus, it helps to reduce the electricity bills in Houston households.

Houston Average Electric Bill FAQs

What size of solar generator do I need for my house in Houston?

The size of the solar generator required for your Houston home is determined by several factors, including the square footage, the number and type of appliances you want to power, your energy consumption habits, and the duration of charging appliances.

For example, you are charging a refrigerator (520W) and a TV (60W) simultaneously with the help of  Jackery Solar Generator 3000 Pro.

Working Time = Capacity in Wh × 0.85 / Operating wattage of the appliances

So, working time = 3024Wh × 0.85 / 580W = 4.4 H

We have multiplied the battery capacity by 0.85 since there will be some power loss during the charging of the appliances.

Why is electricity so expensive in Houston?

Some of the reasons why electricity in Houston is so expensive are the city’s aging power grid, continuous electrification, extreme weather, rising utility (TDU) fees, and its growing population.

Source: U.S. Bureau of Labor Statistics

What is the average electric bill for a 2-bedroom apartment in Houston?

The average electric bill in Houston for a 2-bedroom apartment is $88/month.

How much is the electric bill for a 2000 sq ft house in Houston?

The electric bill for a 2000 sq ft house in Houston is $164.

Note: This data is based on the average electricity rate in Houston of $0.142 per kilowatt hour (kWh) multiplied by the average usage of 1,094 kWh.

Final Thoughts

Purchasing solar generators is a forward-thinking move for any homeowner who wants to reduce their average electric bill in Houston and support environmental sustainability. These offer credible power sources and substantially reduce the high electricity bills. The user-friendliness and capacity to run big appliances of  Jackery Solar Generators will support your economical way of living.