The High Cost of Energy in Texas
Texas families continue to struggle with high electricity bills, with some paying an average of $303 per month. Despite the expansion of power generation in the state, extreme weather conditions and grid inefficiencies keep energy costs high. Instead of investing in cost-effective solutions, taxpayers are being forced to subsidize the construction of expensive, climate-polluting power plants.
Smart Solutions for Affordable Energy
Rather than throwing money at outdated infrastructure and corporate subsidies, Texas legislators have an opportunity to invest in modern, practical, and equitable energy solutions that benefit all Texans. The following policy changes can help lower electricity bills, improve grid reliability, and create jobs:
Expand Energy Efficiency Programs
Energy efficiency is the lowest-cost solution to reducing electricity demand and stabilizing the grid. Yet, Texas has not updated its statewide energy efficiency goal in over 14 years. Legislators should:
- Raise the statewide energy efficiency goal to at least 1% of utility sales. Studies suggest that such a policy could have reduced the energy demand spike during Winter Storm Uri in 2021 by half.
- Implement new energy efficiency programs funded by the $689 million from the U.S. Department of Energy to support home weatherization and appliance rebates.
- Establish a Texas Energy Efficiency Council to coordinate state agencies, utilities, and other stakeholders on energy efficiency funding and programs.
Prioritize Conservation Over Corporate Subsidies
Right now, large corporations like crypto mining operations and data centers receive financial compensation when they reduce their electricity usage during peak demand. Texas families, however, receive no such benefit. To create a more equitable system, legislators should:
- Pass legislation to financially compensate households for conserving energy during ERCOT grid conservation calls.
- Allocate a portion of the Texas Energy Fund to expand regional microgrids and battery backup systems, allowing communities to generate and store their own energy.
Oppose Policies That Hinder Renewable Energy Growth
Texas has long benefited from investments in wind, solar, and battery storage, which help keep energy prices stable. However, recent policy proposals threaten to slow the growth of these resources. Legislators should:
- Reject policies that make it harder to develop solar power, wind energy, and battery storage.
- Strengthen incentives for businesses and homeowners to adopt distributed clean energy solutions.
Assist Low-Income Families with Energy Bills
Texas families living in poverty often spend over 10% of their income on electricity bills. Without financial relief, many households face energy insecurity. To address this issue, legislators should:
- Expand payment assistance programs for low-income families struggling with high energy costs.
- Pass legislation to increase funding for weatherization programs, helping families make their homes more energy-efficient and resilient against extreme temperatures.
Strengthen Building Codes for Energy Efficiency
New construction in Texas must be built to modern standards that prioritize energy efficiency and resilience. Legislators should:
- Raise state minimum building codes, ensuring all new developments are designed for energy efficiency.
- Establish a fortified roof grant program to help homeowners better protect their properties from hurricanes, hail, and extreme weather events.
The Urgency of Action
Recent data from Winter Storm Enzo in January 2025 revealed that Texas had sufficient power supply during a mild cold snap. However, had the storm been as severe as Uri, demand could have reached 97,541 megawatts, dangerously close to the state’s total capacity of 100,400 megawatts. Instead of relying on power plants that take years to build, Texas must implement energy efficiency and conservation strategies now.
Texas has fallen to 36th place in energy efficiency compared with other states. If Texas wants to remain a leader in energy, business, and economic resilience, prioritizing energy efficiency and affordability must be at the top of the legislative agenda.
By adopting these common-sense policies, Texas legislators can lower electricity bills, create good-paying jobs, and ensure a reliable energy future for all Texans.