Reducing Winter Heating Costs in Texas

Published 2026-04-06 · By ChooseMyPower Editorial

Texas Winters Are Mild but They Still Cost You

Texas winters are nothing like Minnesota, but they still affect your electricity bill. The average Texas household sees bills rise by $30-$60 during December through February, and cold snaps can push costs much higher.

Most of the increase comes from heating. Whether you have a heat pump, electric furnace, or space heaters, running them all day during a cold stretch adds up. The good news is that a few smart strategies can keep you comfortable without blowing your budget.

Know Your Heating System

The type of heating system you have makes a huge difference in your winter electricity costs.

Heat pumps are the most common system in newer Texas homes. They work by moving heat from outside air into your home, and they are very efficient in mild weather. When it is 40-50 degrees outside, a heat pump uses about half the electricity of resistance heating.

The problem comes when temperatures drop below 30-35 degrees. At that point, most heat pumps switch to auxiliary resistance heating, which is essentially a giant toaster inside your air handler. Aux heat uses 2-3 times more electricity. If you see “AUX” or “EM HEAT” on your thermostat display, your system is running in this expensive mode.

Gas furnaces burn natural gas and are not affected by your electricity rate. If you have gas heating, your winter electricity bill stays relatively stable, though your gas bill goes up.

Electric resistance heaters (baseboard heaters or wall heaters) are the least efficient option. If your home has these, consider supplementing with space heaters in rooms you actually use rather than heating the entire house.

Insulation Is Your Best Winter Investment

Heat rises, and in a poorly insulated home, it rises right through your ceiling and into the attic. If your attic insulation is below R-38 (about 12 inches of blown-in fiberglass), you are paying to heat your attic.

Adding attic insulation costs $1,500-$3,000 for a typical Texas home and typically pays for itself within 2-3 years through combined heating and cooling savings. It is one of the few home improvements that actually delivers on its ROI promise.

While you are at it, check for air leaks around windows, doors, electrical outlets, and where pipes enter walls. A $5 can of spray foam and $10 worth of weatherstripping can make a noticeable difference in how warm your house stays.

Smart Thermostat Strategies for Winter

Set your thermostat to 68 degrees when you are home and 60-62 degrees when you are sleeping or away. This simple schedule saves roughly 10-15% on heating costs compared to keeping it at 72 all the time.

If you have a heat pump, avoid large temperature swings. Setting the thermostat to 55 while you are at work and then cranking it to 72 when you get home forces the system into aux heat mode to recover quickly. A gradual 6-8 degree setback is more efficient.

Program your thermostat to start warming the house 30-45 minutes before you wake up or come home. This lets the heat pump do the work gradually without triggering aux heat.

Use the Sun

On sunny winter days, open south-facing curtains and blinds to let solar heat warm your rooms naturally. Close them at sunset to trap the heat inside. This passive solar heating is free and can raise room temperatures by 3-5 degrees.

At night, heavy curtains act as additional insulation against cold windows. Thermal curtains with a backing layer can reduce heat loss through windows by 25%.

Space Heaters: Use Them Wisely

A space heater in the room you are sitting in can be more efficient than heating your entire house. A 1,500-watt space heater costs about 15-18 cents per hour to run at Texas electricity rates.

If you lower your thermostat to 62 and use a space heater in your living room during the evening, you can save $20-$40 per month compared to heating the whole house to 70. Just make sure to turn the heater off when you leave the room, and never run one while sleeping.

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Frequently Asked Questions

Is a heat pump or gas furnace cheaper to run in Texas?

In most of Texas, a heat pump is cheaper for heating because winters are mild. Heat pumps are 2-3 times more efficient than electric resistance heating and competitive with gas in moderate climates. Gas furnaces can be cheaper during extreme cold snaps when heat pump efficiency drops, but those events are rare in Texas.

What temperature should I set my thermostat in winter to save money?

Set it to 68 degrees when you are home and 60-62 degrees when you are sleeping or away. Every degree you lower the thermostat saves about 3% on heating costs. A programmable thermostat makes this effortless.

Why does my electricity bill spike during Texas cold snaps?

When temperatures drop below 30 degrees, heat pumps lose efficiency and may switch to auxiliary electric resistance heating, which uses 2-3 times more electricity. A single week of extreme cold can add $100 or more to your monthly bill.

Does insulation matter as much for heating as it does for cooling?

Absolutely. Insulation works both ways, keeping heat out in summer and keeping it in during winter. If your attic insulation is below R-38, you are losing heated air through the ceiling. Proper insulation is one of the most cost-effective ways to reduce both heating and cooling bills.