Where the Real Savings Are
- •AC accounts for 50-70% of your summer bill (EIA) — fix this first, everything else is secondary
- •Setting your thermostat back while you're away saves up to 10%/year on heating and cooling costs (DOE)
- •Usage reduction and rate shopping are separate levers — doing both compounds your savings
Air Conditioning & Heating (Start Here)
Air conditioning makes up roughly 28% of annual residential electricity use in Texas, but during July and August it can drive 50-70% of your entire bill (EIA). No other category comes close, so the highest-leverage changes are here.
- Set it back while the house is empty. A 7-10°F setback for 8 hours a day while you're at work or asleep can save up to 10% a year on combined heating and cooling costs (DOE) — no one's there to notice the difference.
- Use a programmable or smart thermostat. ENERGY STAR estimates households save around $180/year by scheduling setbacks automatically instead of relying on remembering to adjust it manually.
- Run ceiling fans while you're in the room. Moving air feels cooler at the same temperature, which lets your AC cycle less — just turn fans off when you leave, since they cool people, not empty rooms.
- Replace air filters monthly during peak season. A clogged filter makes your system work harder for the same cooling output.
- Seal obvious air leaks and add attic insulation. Weatherstripping doors, caulking window gaps, and topping up attic insulation reduce how much cooled air escapes in the first place.
Water Heating
- Lower your water heater to 120°F — most units default higher than needed for household use.
- Insulate the tank and the first few feet of hot water pipe if your water heater is in a garage or unconditioned space.
- Fix drips promptly — a leaking hot water faucet wastes both water and the energy used to heat it.
Appliances & Electronics
- Wash clothes in cold water — most of a laundry load's energy use goes to heating water, not running the motor.
- Run full loads in the dishwasher and washing machine rather than partial ones.
- Skip the dishwasher's heated dry cycle and let dishes air dry instead.
- Unplug or use a smart power strip for electronics you rarely use — many devices draw standby power even when "off."
- Look for the ENERGY STAR label when replacing any major appliance; the efficiency difference compounds over the appliance's lifetime.
Lighting
- Switch remaining incandescent or CFL bulbs to LED — LEDs use a fraction of the electricity for the same brightness and last far longer.
- Use natural light during the day and motion-sensor switches in rooms that get left on unnecessarily.
The Other Lever: Your Rate Plan
Everything above reduces how many kWh you use. The other half of the equation is what you pay per kWh — and in Texas's deregulated electricity market, that's something you actually control.
- Compare current rates in your ZIP code — if you're on an expired contract, you're likely paying a month-to-month rate well above market.
- Use the savings calculator to see what switching from your current rate could actually be worth per year.
- Watch out for plans with a minimum usage fee — cutting your usage too aggressively can occasionally backfire if it drops you under a plan's threshold.
- Check current summer rates by area before signing a new contract during peak season.
Reducing usage and shopping for a better rate aren't competing strategies — they compound. A household that cuts summer AC-driven usage by 15% and switches off an overpriced plan sees both savings stack on the same bill.
See What You Could Be Paying
Enter your ZIP code to compare current rates — pairs well with the efficiency changes above.
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Frequently Asked Questions
What uses the most electricity in a Texas home?
Air conditioning, by a wide margin. It accounts for roughly 28% of annual residential electricity use in Texas (EIA), but during July and August specifically it can account for 50-70% of your entire summer bill. Any usage-reduction effort should start with AC before anything else.
How much does setting back my thermostat while I'm away actually save?
The Department of Energy estimates up to 10% a year on combined heating and cooling costs by setting your thermostat back 7-10°F for 8 hours a day while you're away, e.g. during work hours — since no one's home to notice the difference.
Does switching electricity providers actually save more than efficiency changes?
They solve different problems and both matter. Efficiency changes reduce how many kWh you use; switching to a better rate reduces what you pay per kWh. A household on an overpriced month-to-month rate can often save more by switching providers in five minutes than by making several efficiency changes — doing both compounds the savings.