How Much Does It Cost to Cool a House in Texas?
Cooling a typical Texas home costs between $150 and $500 per month during summer, depending on home size, insulation quality, thermostat habits, and the rate on the electricity plan. That wide range is not an accident. Two neighbors in identical houses can pay $200 apart each month because of differences in plan pricing alone. Understanding which variables matter most is the first step toward controlling the bill.
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What the Average Texas Household Spends
The U.S. Energy Information Administration (EIA) reports that the average Texas residential customer used about 1,096 kWh per month in 2024, with summer months pushing usage considerably higher. A household running 1,200 to 1,500 kWh in July is typical for a 2,000-square-foot home in Dallas or Houston.
At the median listed rate of 14.7 cents per kWh across plans listed on Choose My Power as of November 11, 2026, a household using 1,200 kWh pays roughly $176 in electricity charges before any fixed fees. At 1,500 kWh, that same rate produces a $220 charge. Add a $10 to $15 monthly service fee and the bill lands between $186 and $235 for a mid-size home at median pricing.
Households on above-average rates, or running larger homes with older HVAC equipment, can easily exceed $400 per month. That is not unusual in Texas summers.
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The Four Variables That Drive Your Cooling Bill
1. Your Electricity Rate
The rate on your plan is the single most controllable variable once you are in a home. The difference between a poor plan and a competitive one can exceed $50 per month at summer usage levels.
Plans listed on Choose My Power as of November 11, 2026 ranged from 6.4 cents per kWh all-in at 1,000 kWh (APGE SimpleSaver 7, lowest-cost utility area) to well above 20 cents per kWh on some month-to-month arrangements. That spread represents a potential gap of more than $140 per month at 1,200 kWh. Picking a plan without comparing is one of the most expensive habits a Texas household can have.
One structure to watch carefully: 18 of 123 plans listed on Choose My Power as of November 11, 2026 carry a bill-credit cliff, where the bill at 500 kWh runs $25 or more above the bill at 1,000 kWh. These plans reward high summer usage but punish households that use less. A family trying to conserve energy in June could end up paying more than a household running the AC at 72 degrees all day.
2. Home Size and Layout
A 1,000-square-foot apartment and a 3,500-square-foot house are simply different cooling problems. The EIA estimates that air conditioning accounts for roughly 19 percent of annual household electricity use nationwide, and a much larger share of the bill during summer months in hot climates. Larger square footage means more air volume to condition, more exterior wall exposure, and usually more windows.
Single-story homes in Texas often cool less efficiently than two-story homes of the same square footage, because the roof transfers heat directly into living space. Attic insulation quality amplifies this effect significantly.
3. HVAC Efficiency
The SEER (Seasonal Energy Efficiency Ratio) rating on an air conditioning unit measures how much cooling output it delivers per unit of electricity consumed. Federal standards required new split-system central AC units under 45,000 Btu/h installed on or after January 1, 2023 in the South to meet a minimum SEER2 of 14.3 (roughly equivalent to SEER 15 under older testing). An older system rated at SEER 10 uses roughly 50 percent more electricity than a SEER 15 system to produce the same cooling.
For a household spending $250 per month on cooling, replacing a SEER 10 unit with a SEER 16 unit could reduce that specific cost by $60 to $80 per month. The payback period on a new unit is typically seven to twelve years, so a system that is five years or younger generally does not justify replacement on cost grounds alone.
4. Thermostat Settings and Behavior
Energy Star guidance, published by the U.S. EPA, uses 78 degrees Fahrenheit when home and 85 degrees when away as an example energy-saving schedule, though EPA says it does not recommend any specific cooling-season temperature. Each degree below 78 adds approximately two to three percent to the cooling load, according to the Department of Energy. A household keeping the thermostat at 72 degrees is consuming roughly 12 to 18 percent more cooling energy than one set to 78.
Programmable and smart thermostats can automate setbacks during work hours without requiring any daily discipline. The EPA estimates smart thermostat users save an average of 8 percent on heating and cooling combined, though summer savings in Texas climates trend higher given the extended cooling season.
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A Rough Monthly Cost Table by Home Size
These estimates use 14.7 cents per kWh (the median rate from plans listed on Choose My Power as of November 11, 2026) and assume a mid-efficiency HVAC system (SEER 14 to 16) with thermostat set to 76 degrees in a central Texas climate.
| Home Size | Est. Summer kWh | Est. Monthly Bill |
|---|---|---|
| 800 sq ft apartment | 600 to 800 kWh | $95 to $130 |
| 1,500 sq ft home | 1,000 to 1,300 kWh | $160 to $205 |
| 2,500 sq ft home | 1,500 to 2,000 kWh | $235 to $310 |
| 3,500 sq ft home | 2,000 to 2,800 kWh | $310 to $430 |
These ranges shift materially with rate differences, insulation quality, and number of occupants.
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Steps That Reduce Cooling Costs Without Upgrading Equipment
Raise the thermostat by two to three degrees. This one change, from 74 to 76 or 76 to 78, reduces cooling consumption by four to nine percent with minimal comfort impact for most households.
Use ceiling fans when rooms are occupied. Fans allow a thermostat setpoint two to four degrees higher while maintaining the same perceived comfort level, according to the Department of Energy. Turn fans off in unoccupied rooms, since fans cool people through evaporation, not rooms through temperature reduction.
Block afternoon sun. West-facing windows let in heat during the hottest part of the day. Cellular shades or exterior shading can reduce solar heat gain by 40 to 70 percent (Department of Energy). This is a low-cost intervention with meaningful impact.
Seal air leaks. ENERGY STAR, the EPA program, estimates that air infiltration accounts for 25 to 40 percent of cooling and heating energy loss in homes. Weatherstripping around doors and caulk around window frames are inexpensive fixes with strong payback.
Check the air filter. A clogged filter forces the HVAC system to work harder, increasing both energy consumption and equipment wear. Filters in Texas homes running continuously in summer should be checked monthly.
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When to Check Your Electricity Plan
If the household is on an expired contract or a month-to-month rate, summer is the worst time to switch because short-term rates tend to spike during peak demand periods on ERCOT, the Texas grid operator. The best time to shop is February through April, before the peak season begins.
That said, a household paying above 18 cents per kWh on a fixed-rate contract may still benefit from shopping, even in summer, depending on the early termination fee. A $150 termination fee is often recovered in two months of savings at competitive rates.
Compare plans at the specific usage level the household expects to use. The rate shown at 1,000 kWh on the Electricity Facts Label (EFL) can differ substantially from the effective rate at 1,500 kWh, particularly on plans with bill-credit structures.
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The Bottom Line
Cooling costs in Texas are high because the climate demands it, but not every dollar on a summer bill is unavoidable. The electricity rate, the thermostat setting, and basic air sealing are all within a household's control and together account for most of the gap between average and low bills. Equipment upgrades help but carry long payback periods. Shopping the electricity plan, by contrast, costs nothing and can reduce the monthly bill immediately.