The Cost of Power: How Much Texans Spend on Electricity Compared to Rent, Food, and Gas

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With energy costs soaring across Texas, many residents are feeling the squeeze. From steamy summers to sudden cold snaps, extreme weather has spiked electricity demand, and in a deregulated market, that often means big swings in monthly bills.

To understand how Texans are coping, we compared energy spending to other major living expenses and surveyed residents about their budgeting strategies. The results reveal just how deeply high electricity bills are cutting into household finances.

Key Takeaways

• Texans spend 12% of their monthly income on electricity, making it one of the biggest household costs alongside food, gas, and rent.
• Nearly 1 in 3 Texans don’t understand how their electricity is calculated.
• 1 in 4 Texans are considering leaving the Lone Star State due to high electricity bills.
• 1 in 4 Texans have taken on credit card debt just to pay their energy bills.

Electricity Is Eating a Bigger Slice of the Budget

Texans are seeing their power bills climb to the top of their monthly expense list, and many don’t know why their bills are so high.

Nearly half of the respondents (48%) said electricity ranks among their top three monthly expenses. On average, Texans spend 12% of their monthly income on electricity, putting it on par with major costs like rent, food, and gas. That figure rises to 13% for renters but dips to 10% for homeowners. Single-family homes spend about 2% less of their income on electricity than multi-family homes.

Many Texans (67%) believe their electricity bill is too high, yet most don’t fully understand how that cost is determined. Only 18% said they know how electricity pricing works, while half were only somewhat informed. About a third (32%) admitted they don’t understand how their electric bill is calculated.

Sacrifices at Home to Stay Powered On

As bills rise, Texans are making difficult choices, cutting back on basic needs and even going into debt to keep the lights on.

More than two-thirds (68%) of Texans said they’ve reduced spending on groceries, dining out, or other necessities to afford their electricity bills. Renters reported more frequent cutbacks than homeowners across all spending categories.

Over a third of respondents said they have skipped or delayed paying an electricity bill. This was more common among renters (47%) compared to homeowners (31%). Additionally, 1 in 4 Texans said they had taken on credit card debt just to cover their energy costs.

To save even more, 39% reported avoiding using air conditioning during extreme heat. This choice was more common among renters (45%) and urban residents (44%) than among homeowners (34%) and suburban (37%) or rural (33%) dwellers.

Due to high electricity bills, 26% of Texans have considered leaving the state. Among those earning under $50,000 annually, 28% said electricity costs have made them reconsider whether they can continue living in Texas.

Texans Seek Relief Through Technology and Switching Providers

Texans are cutting back and looking for smarter ways to save on electricity, from shopping around to investing in energy-efficient technology.

Nearly a quarter of Texans (24%) have switched electricity providers in the past year to find better rates. Among those who made a switch, 15% reported actually saving money. Not everyone sees the market as friendly. About 41% of Texans believe the state’s deregulated energy market ultimately harms consumers rather than helps them.

More than half of homeowners (51%) now rely on energy-saving tools like smart thermostats and appliances to reduce their power usage. And another 47% said they would consider switching to solar power if the upfront costs were more affordable.

Conclusion: The High Cost of Powering Texas Homes

For many Texans, their electricity bills are one of the biggest challenges in their monthly budget. Rising costs are forcing people to cut back, take on debt, or even consider moving out of state. But Texans aren’t giving up. From switching providers to using smart tools at home, they’re looking for ways to lower their bills and take control. With better access to information and affordable options, more families can stay powered without falling behind.

Methodology

We surveyed 852 Texas residents to explore the impact Texas’ high electricity costs have on its residents. The mean age was 28, with 40% identifying as male, 59% as female, and 1% as nonbinary. Generationally, 10% were baby boomers, 27% were Gen X, 42% were millennials, and 20% were Gen Z. As for location, 14% of respondents lived in rural areas, 54% in suburban areas, and 32% in urban areas. Percentages in this study may not total 100 exactly because of rounding.

About Payless Power

Payless Power helps Texans take control of their electricity bills with flexible prepaid plans, no-deposit options, and easy-to-use online tools. Whether you’re looking to save money or better manage your usage, Payless Power offers simple, reliable energy solutions designed for budget-conscious households.

Fair Use Statement

If you’d like to share these insights, you’re welcome to do so for noncommercial purposes. Just be sure to include a link back to Payless Power for proper attribution.

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