Skip to content

Texas Ranks As One Of The Least Energy-Expensive States

According to a recent study, the average monthly energy bill in Texas is $378
Dallas,Downtown,Skyline,At,Sunset,,Texas
Photo: kan_khampanya | Shutterstock

Approximately one-quarter of U.S. households are experiencing high energy burdens and 27% of households have difficulty meeting their energy needs, according to a recent research study.

In the latest report from WalletHub, 2023's Most and Least Energy-Expensive States, the site ranks the most energy expensive states as Wyoming, North Dakota and Alaska. The least expensive states are the District of Columbia, New Mexico and Texas. 

“The U.S. grid is regional, not national. Some areas will experience price increases – particularly those weatherizing to address future weather extremes – whereas others will not,” said Hannah Wiseman, professor with Penn State Law.

For the report, researchers compared the average monthly energy bills in each of the 50 states. The following factors were taking into account when determining each state’s average monthly energy bill:

  • Average monthly consumption of electricity
  • Average retail price of electricity
  • Average monthly consumption of natural gas
  • Average residential price of natural gas
  • Average monthly consumption of home heating oil
  • Average residential price of home heating oil
  • Average motor-fuel price 
  • Average motor-fuel consumption

Data for the report was sourced from the U.S. Census Bureau, U.S. Energy Information Administration, Federal Highway Administration, American Automobile Association, National Highway Traffic Safety Administration and the U.S. Environmental Protection Agency.

According to the report, the average home in the U.S. currently spends more than six percent of income on utility bills. Texas, as the third least energy-expensive state, has an average monthly energy bill of $378. 

The most expensive state, Wyoming, has an average monthly energy bill of $845. The least expensive states, the District of Columbia has an average monthly bill of $274. 

“Heating and cooling of living spaces and heating water are some of the largest components of energy bills. Weatherizing living spaces – closing gaps around windows and doors, for example, while also updating ventilation to ensure good indoor air quality – is key. Energy-efficient heating and cooling systems, such as heat pumps, also make a big difference," said Wiseman.

Here is where Texas ranks along the other metrics in the study:

  • 11th – Electricity consumption per consumer
  • 15th – Motor fuel consumption per driver
  • 18th – Price of natural gas
  • 32nd – Price of electricity
  • 47th – Natural gas consumption per consumer
  • 49th – Price of motor fuel

For additional information, click here