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Ways to lower your electric bill
In Texas, cooling dominates. Air conditioning and its fan average about 4,700 kWh a year in Texas homes that have them, roughly a third of a typical home's 13,440 kWh (EIA RECS 2020, Table CE4.6.EL.ST; EIA RECS 2020, Table CE5.3.ST). Start there, then water heating.
That share is our arithmetic from EIA's 2020 averages, not an EIA figure. Savings below are as each source states them; "up to" means the high end, not the typical result.
Cooling
| Fix | What it saves | Cost |
|---|---|---|
| Turn the thermostat back 7–10°F for 8 hours a day | Up to 10% a year on heating and cooling (DOE Energy Saver: thermostats) | Free |
| 78°F when home, higher when away or asleep | ENERGY STAR's former schedule: 78°F or more when home, at least 7°F higher when away, at least 4°F higher asleep (ENERGY STAR thermostat schedule, archived 2017) | Free |
| Ceiling fan in the room you're in | Lets you raise the thermostat about 4°F with no loss of comfort; turn it off when you leave, since fans cool people, not rooms (DOE Energy Saver: fans, archived) | Low |
| Clean or replace the AC filter every month or two in summer | 5–15% less AC energy (DOE: maintaining your air conditioner) | A filter |
| Seal ducts | A typical house loses 20–30% of duct air to leaks (ENERGY STAR: duct sealing) | Varies |
| Replace an AC more than about 10 years old | May save 20–40% of cooling energy costs (DOE: central air conditioning, archived); new Texas installs since 2023 must meet SEER2 14.3 (13.8 for larger units) (DOE 2023 central AC standards FAQ) | High |
| Smart thermostat | ENERGY STAR certifies models on field data from more than 1,000 homes; it publishes no per-home percentage (ENERGY STAR smart thermostat fact sheet, 2023) | Varies |
| Awnings on south and west windows | Up to 65% (south) and 77% (west) less summer heat through those windows (DOE Energy Saver: window attachments) | Varies |
| Cool roof (when re-roofing) | Up to 15% less AC use per year (DOE: cool roofs) | Varies |
Heat pumps: DOE says programmable setbacks are generally not recommended for heat pumps in heating mode, because the backup resistance heat can kick on (DOE Energy Saver: thermostats).
Insulation and air sealing
ENERGY STAR's national average is 15% off heating and cooling, but its own table shows smaller savings in Texas climates: 9% in climate zone 2 (most of Central, East and South Texas) and 14% in zone 3 (ENERGY STAR: seal and insulate methodology). Its recommended attic level for zones 2 and 3 is R49, or R38 if there are already 3–4 inches (ENERGY STAR: recommended R-values).
Water heating
| Fix | What it saves | Cost |
|---|---|---|
| Set the water heater to 120°F | 4–22% a year; at 140°F a tank can waste $36–$61 a year in standby losses (DOE: lower water heating temperature) | Free |
| Low-flow showerheads and aerators | 25–60% less water through those fixtures (DOE: reduce hot water use) | $10–$20 each (DOE: reduce hot water use) |
| Heat pump water heater | About $550 a year for a family of four ($270 for two), paying back in about 2.7–5.5 years (ENERGY STAR: heat pump water heaters) | About $1,503 more than a standard tank (ENERGY STAR: heat pump water heaters) |
Lighting, appliances and plug loads
| Fix | What it saves |
|---|---|
| LED bulbs | At least 75% less energy than incandescent, lasting 25 times longer (DOE Energy Saver: LED lighting, archived) |
| Retire an old second refrigerator | A fridge over 15 years old can cost about $95 a year to run (ENERGY STAR: refrigerators); Texas second fridges average 578 kWh a year (EIA RECS 2020, Table CE5.3.ST) |
| Wash in cold water | Heating water is about 90% of a washer's energy (ENERGY STAR: clothes washers) |
| Heat pump dryer (when replacing) | About 70% less energy than a conventional dryer (ENERGY STAR: laundry) |
| Switchable power strips for TVs and computers | Standby power is 5–10% of home energy use, up to about $100 a year (DOE: standby power) |
| ENERGY STAR pool pump | 20% less energy than standard in-ground pumps, about $50 a year; halving pump speed cuts its energy to one-eighth (ENERGY STAR: pool pumps) |
Running appliances at night
On a standard fixed-rate plan every kWh costs the same at any hour, so it only pays on a time-of-use or free-nights plan, and then only if you actually shift the usage (PUCT: electricity plans).
Free help and rebates in Texas
- Home energy assessment: DOE says upgrades found in an assessment can save 5–30% on a monthly bill (DOE: home energy assessments).
- Oncor customers: Take a Load Off, Texas pays incentives through participating contractors for HVAC, insulation, air sealing and more, plus low-income weatherization; programs run January through November (Oncor: Take a Load Off, Texas).
- CenterPoint customers: up to a $50 instant discount on an ENERGY STAR smart thermostat (CenterPoint: smart thermostat discount).
- CPS Energy (San Antonio): Casa Verde covers insulation, duct sealing, AC tune-ups and more for income-qualified homeowners and renters (CPS Energy: Casa Verde).
- Weatherization: Texas' Weatherization Assistance Program, through local agencies, serves households up to 200% of the federal poverty guidelines for the DOE-funded program (150% for the LIHEAP-funded one) (TDHCA: Weatherization Assistance Program).
- Federal tax credits have ended: the IRS says the 25C home-improvement credit is not allowed for property placed in service after December 31, 2025, and the 25D residential clean energy credit ended for expenditures after that date (IRS: energy credit FAQs). Some product pages still advertise them.
- Federal home energy rebates (HOMES and HEAR): not yet launched in Texas; the State Energy Conservation Office warns against signing agreements tied to them (Texas SECO, Comptroller).
To size what a change saves in kWh, use the home load table and energy calculator, then price it with your plan's cents per kWh in the comparison calculator.
More on your electric bill
- How to read an Electricity Facts Label
- Texas electricity plan traps
- Delivery charges by utility
- Help paying your electric bill
- Plan comparison calculator
Updated October 29, 2026. General information, not legal or financial advice. Rules are quoted from the Public Utility Commission of Texas rules as published; your plan's own Electricity Facts Label and Terms of Service govern your contract.