Texas Electricity Rates

The current average residential electricity rate in Texas is approximately 12.8¢/kWh. This varies by utility — some charge as low as 8.9¢/kWh while others exceed 16.6¢/kWh. Use our utility-specific pages for exact rates.

At the current annual increase rate of approximately 2.3%, a Texas household paying $1,379/year today would pay approximately $1,731/year by 2036. Over 25 years, that cumulative total is significantly more than the cost of a solar installation.

Yes. Texas electricity rates have increased approximately 2.3% per year on average over the last decade. This trend is driven by grid infrastructure upgrades, renewable energy mandates, and fuel cost volatility. Solar panels lock in your rate at $0/kWh for 25+ years.

An average Texas household can save approximately $44,679 over 25 years with an 8 kW solar system. This accounts for current rates and estimated annual increases. The higher your rate, the more you save.

Rates vary significantly across Texas utilities. Municipal utilities often have different rate structures than investor-owned utilities. Check our utility-specific pages for current rates, rate history, and solar savings estimates for your exact utility.