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Every summer, Texans open their July electric bill and wince. The number is always higher than expected, sometimes shockingly so. The good news: your summer electric bill doesn’t have to catch you off guard. Once you understand why it spikes, you can do something about it.
Key takeaways
- Air conditioning can be half or more of a Texas home’s summer usage.
- Higher usage multiplies whatever you pay per kWh, so a bad rate hurts most in summer.
- Variable and indexed plans can get pricier when the grid is stressed.
- Lock in a fixed rate before summer and tune up your AC.
The Texas summer perfect storm
July is peak summer across Texas, and several things hit at once:
- Temperatures regularly reach the upper 90s and 100s
- Your AC runs for much of the day, often 10 hours or more
- Longer days mean more time at home with lights, devices and appliances running
- Grid demand peaks, which can raise prices on variable and indexed plans (here’s what ERCOT alerts mean)
The real culprit: your AC
Cooling can account for half or more of a Texas home’s electricity use in summer. When it’s 100°F outside, your AC works much harder to hold the same indoor temperature. Systems older than about 10 to 15 years are usually less efficient and use noticeably more power to do the same job. See what running AC in Texas actually costs.
What you can do right now
- Lock in a fixed rate before peak season. On a variable plan, July can be brutal. A fixed-rate plan keeps your price per kWh the same no matter how hot it gets. Watt Panda can review your current plan and find a better fixed rate, for free.
- Set your thermostat strategically. Each degree warmer can trim cooling costs, roughly 1% to 3% per degree. Try 78°F when you’re home and higher when you’re away.
- Use ceiling fans. Fans make a room feel about 4°F cooler and use a fraction of the power your AC does. Turn them off in empty rooms, since they cool people, not air.
- Block the sun. Close blinds and curtains on sunny windows during the hottest hours, roughly 10 a.m. to 4 p.m.
- Get an AC tune-up and change the filter. A clean, well-maintained system runs more efficiently and is less likely to fail in a heat wave.
Watch out for usage-based pricing
Some plans look cheap at 1,000 kWh but price differently once your usage climbs into summer territory. Check the EFL average price at 2,000 kWh, not just 1,000 kWh, if your summer bills run high.
The Watt Panda bottom line
You can’t control Texas summers. But you can control what you pay per kWh. If you haven’t had your plan reviewed this year, do it before the July spike hits.
Helpful official resources: U.S. Department of Energy: Energy Saver · ERCOT
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Frequently asked questions
Why is my electric bill so high in the summer in Texas?
Mostly air conditioning. Higher usage multiplies your rate, and plans with variable pricing can charge more during peak demand.
What thermostat setting saves the most money in summer?
The U.S. Department of Energy suggests 78°F when you’re home and higher when you’re away. Every degree helps.
Should I switch electricity plans before summer?
If your contract ends in the next few months or you’re on a variable plan, reviewing it before summer is a smart move. We’ll tell you whether switching now makes sense.
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