Electricity Rates in Texas (2026)
The average residential electricity rate in Texas is 13.0 cents/kWh, which is 19% below the national average of 16.0 cents/kWh. Even with lower rates, Texas homeowners benefit from solar through state incentives, rising rate trends, and energy independence.
Texas Average
13.0¢
per kWh
National Average
16.0¢
per kWh
Utility Companies in Texas
| Utility Provider | Avg Rate | Service Area |
|---|---|---|
| TXU Energy | 13.0¢/kWh | ERCOT deregulated areas |
| Reliant Energy | 12.0¢/kWh | ERCOT deregulated areas |
| Green Mountain Energy | 14.0¢/kWh | ERCOT deregulated areas |
| CPS Energy | 11.0¢/kWh | San Antonio |
| Austin Energy | 11.0¢/kWh | Austin |
| Oncor | 13.0¢/kWh | Dallas-Fort Worth (delivery) |
Electricity Rate History in Texas
| Year | Avg Rate (cents/kWh) | Change |
|---|---|---|
| 2020 | 11.0¢ | -- |
| 2021 | 12.0¢ | +9.1% |
| 2022 | 13.0¢ | +8.3% |
| 2023 | 13.0¢ | 0.0% |
| 2024 | 13.0¢ | 0.0% |
| 2025 | 13.0¢ | 0.0% |
Source: U.S. Energy Information Administration (EIA) residential electricity rate data.
How Electricity Rates Affect Solar Savings in Texas
Your electricity rate directly determines how much you save with solar panels. Every kilowatt-hour your solar system produces offsets energy you would otherwise buy from the grid at 13.0 cents/kWh.
While Texas enjoys below-average electricity rates today, rates have been trending upward. Solar panels lock in your energy costs for 25+ years, protecting you from future rate increases. With available state incentives and net metering programs, the economics still strongly favor going solar.
While Texas doesn't have mandatory statewide net metering, many utilities offer buyback programs. Pairing solar with battery storage can help you maximize self-consumption and savings.
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