When it comes to Texas power usage, the Lone Star State is one of contrasts. On one hand, total power usage in Texas is higher than in any other state — but usage per capita is relatively low. Natural gas accounts for around half of the state’s electricity generation, but green energy sources like wind and solar are gaining ground.   

According to the U.S. Energy Information Administration (EIA), heating and cooling is the biggest driver of Texas power usage. So, if you live in an area of Texas with larger homes, you probably want to look for ways to lower your energy costs.  

Here’s what you need to know about average power usage in Texas in bigger homes, along with some ideas to keep costs down in these areas. 

Do Bigger Homes Use More Electricity? 

In general, bigger homes use more electricity than smaller homes, mostly because they take up more space. Naturally, this results in higher costs to heat and cool the house.   

In Texas, air conditioners and electric heating systems account for a large percentage of energy usage in the winter and summer, so the square footage of your home can have a big impact on your electricity bill.  

That said, the size of your home isn’t the only factor to consider. Where it’s located, how well it’s insulated, and even how old it is can play a role in energy consumption.  

One study by the EIA found that “newer U.S. homes are 30% larger but consume about as much energy as older homes,” suggesting that improved energy efficiency can make up for some of the increase in space in larger homes. 

How Much Energy Does a Large Home Use? 

The Department of Energy estimates that the average American home uses “101,800 British thermal units (Btu) of energy per square foot” each year. Most homes are around 2,500 square feet, so a bigger home with more than 4,000 square feet could expect to use over 400 million Btus of energy per year.  

Since 1 Btu = 0.00029307108333333 kW, that works out to around 30 kilowatts per square foot, or 120,000 kilowatts for a 4,000-sq.ft. home.  

The exact amount of energy you need will depend on what energy sources you use to heat and cool your home. For example, the EIA reports that three-fifths of Texans “use electricity as their primary source for home heating”, which may be less efficient than other methods, such as installing a radiant heating system. 

How Much Energy Does a House Use in Texas? 

According to the EIA, the average Texas home uses 77 million Btu each year. This is 14% less than the national average, because many homes in Texas are both smaller and newer than homes in other states.  

The average home size in Texas is 2,170 square feet, and many apartments are even smaller — less than 1,000 square feet in cities like Dallas and Houston.  

This means that if you live in an area of Texas where homes tend to be larger, such as Southlake or Alamo Heights, you can expect to have higher energy usage than if you lived in a smaller house or apartment in a less expensive area. 

How Much Electricity Does an Average Texas Home Use? 

Energy usage and electricity usage aren’t the same thing, since total energy usage also includes other heating sources like natural gas and propane. Still, since most homes in Texas use electricity for heating, it accounts for the majority of energy use.  

According to the EIA, in 2021 the average home in the state of Texas used 1,094 kilowatt-hours (kWh) of electricity each month, at a rate of 12.11 cents per kWh. That works out to an average monthly bill of $132.40, or $1,584 per year.  

That said, these rates vary from month to month. Like many states, Texas power usage spikes in the winter and summer — and wholesale electricity prices rise — when there’s increased power demand from air conditioners and electric heaters. 

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Which Areas in Texas Have the Largest Homes? 

Large Homes That Use More Powersource

The state of Texas has some of the biggest homes in the U.S. The median home size in Houston is 1,952 sq.ft. and Dallas and Austin aren’t far behind. But to find the biggest homes in Texas, you’ll need to head to the ZIP codes with the highest income levels.  

According to a 2023 report by HomeSnacks.com, Southlake is the richest city in Texas, with a median income of $239,833. The runners-up include:  

  • Bellaire 
  • Alamo Heights 
  • Lucas 
  • Lakeway 
  • Coppell 
  • Heath 
  • Highland Village 
  • Bee Cave 
  • Keller 

The median home price in Southlake, Texas, is $1.5 million, or around $340 per square foot. Based on those figures, we can estimate that the typical house in Southlake has just over 4,400 square feet of living space. 

How Common Are Blackouts and Power Outages in Texas? 

After the 2021 winter storm, regulators have made some changes to the Texas power grid to avoid a repeat. Still, rolling blackouts and power outages are still a possibility during heat waves and extreme weather events.  

The state’s grid is run by ERCOT (the Electric Reliability Council of Texas), which has over 86,000 megawatts of power generation capacity.  

Although the Public Utility Commission of Texas (PUCT) oversees the state’s retail electricity providers, ERCOT is the grid operator and is responsible for ensuring sufficient energy production. ERCOT has made some improvements to the electric grid after the storm, including increased weatherization of power plants and transmission lines.  

Still, experts recommend having a winter kit on hand with emergency food and water. You might also want to consider buying a backup generator for your home. 

Which Parts of Texas Have Energy Deregulation? 

Most parts of Texas have a deregulated electricity market, which means that Texans can choose from multiple electricity providers. Electric companies in Texas offer plans with a variety of rates, contract lengths, and payment terms, such as renewable energy plans, free nights and weekends, and more.  

Currently, the majority of Texas residents live in a deregulated energy market, with the exception of El Paso, Austin, and parts of the Panhandle. This means that residents of Austin suburbs like Lakeway and Bee Cave will have fewer options when choosing an electricity provider. Residents of Houston and Dallas suburbs like Southlake and Bellaire will have more providers to choose from. 

Why Does Texas Use So Much Electricity? 

The state of Texas has been leading the way in electricity use since 1883, when the city of Galveston installed electric street lights. It’s the only state in the continental U.S. with its own electric grid, and it produces the majority of the country’s wind power.  

But why does Texas produce (and use) so much electricity? In part, that’s because so many people are moving to the state. Having already surpassed 30 million residents, Texas is still growing as people move to cities like Austin, Dallas, and Lubbock.  

It also has a relatively large industrial sector: less than half of Texas power usage can be attributed to residential consumers; the rest is used for industrial purposes. 

How Many Solar Panels Do You Need for a Large Home in Texas? 

Large Home in Texas Solar Panelssource

One way to reduce your reliance on the electric grid is to install solar panels, which can provide for some or all of your home energy needs. Your solar generating capacity will be determined by the number of peak hours of sunlight that you get.  

According to Consumer Affairs, a 3,000-square-foot home needs up to 28 solar panels, so an even larger home might need 40 or more. If your solar panels produce excess electricity, you can sell it back to the grid through a Texas solar buyback program.  

Although Texas doesn’t offer free solar panels, you may be able to get an exemption, so the value of your solar panels doesn’t increase your property tax bill. Learn more about how much energy solar panels produce to see if it’s worth it for you. 

How Much Home Energy Storage Do You Need? 

Installing a home energy storage system, such as a Tesla Powerwall, can help you save even more by storing the excess solar energy you generate to use later. It can also help reduce your reliance on the electric grid by providing a backup power source that you can use in the event of an emergency.  

The amount of storage that you need depends on your home’s energy usage. A Tesla Powerwall can store up to 13 kilowatt-hours of electricity, which isn’t enough to power your home continuously, but can help keep the most important appliances running. 

How Can You Improve Energy Efficiency in a Large Home? 

Since most energy usage in Texas goes towards heating and cooling, the best way to improve your energy efficiency is to better insulate your home.  

Consider installing a radiant heating or passive cooling system to regulate your home’s temperature without relying so much on natural gas or electricity.  

You can also use smart meters and timers to turn off appliances when they aren’t in use, reducing the amount of vampire energy they consume.  

Finally, consider charging your electric car and running major appliances at off-peak hours to benefit from lower electricity rates. 

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How to Choose the Best Electric Company for Large Homes 

Couple Review Large Home Costs in Big Housesource

Because Texas has a deregulated electricity market, retail energy providers offer a wide range of plans for consumers to choose from. You may be able to benefit from seasonal energy discounts, free nights and weekends, solar buyback programs, and more.  

Although you can switch providers at any time, there could be a cancellation fee if you end your contract early, so plan ahead to get the best rates and always read the fine print.  

Start by estimating your home energy usage, and then compare plans by kilowatt-hour, keeping in mind the contract terms, contract length, and other variables. Enter your ZIP code below to check your rate now. 
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