Texas Electricity Guide

Smart thermostats and 7 ways to cut your Texas electric bill

Cooling drives most of a Texas summer bill. A smart thermostat plus a handful of practical habits can take real money off what you pay, and the right plan does the rest.

May 2026 · 6 min read
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In a Texas home, air conditioning is usually the single biggest line on your summer electric bill. When the heat sits in the high 90s for weeks, your AC runs hard, and everything else, lighting, laundry, the water heater, gets buried under that one number. The good news is that the biggest expense is also the easiest one to manage. A smart thermostat handles a lot of it automatically, and six other habits stack on top. Here is how each one actually works, and what to check on your plan so the savings are not undone by the rate itself.

Start with the thermostat — it controls your biggest load

A smart thermostat is the highest-leverage upgrade most Texas homes can make, because it manages the system that uses the most power. Instead of cooling an empty house all afternoon, it learns your schedule and eases off when nobody is home, then brings the temperature back down before you walk in.

The mechanics are simple. Every degree you let the house drift upward in summer means your compressor runs less, and the compressor is what draws the heavy current. The U.S. Department of Energy's long-standing guidance is to set the thermostat as high as is comfortable when you are home, and higher when you are away or asleep. A smart unit does that scheduling for you so you never have to remember.

Look for these features when you shop:

Many Texas retail providers and TDUs also run rebate or thermostat programs from time to time. Those come and go, so it is worth asking us what is currently available in your area before you buy.

The 7 moves, in order of impact

1. Install and program a smart thermostat

Set a sensible summer schedule, let it ease the temperature up while you are out, and check the usage report each week. This is the move that touches your largest load, so it goes first.

2. Service your AC and change the filter

A dirty filter or a low-on-refrigerant system makes the AC work harder for the same cooling. Change the filter on schedule, keep the outdoor condenser clear of leaves and grass, and have the system checked before peak summer. A well-maintained unit cools faster and shuts off sooner.

3. Seal the leaks and add shade

Cooled air that escapes through gaps around doors, windows, and attic hatches is air you paid to cool. Weatherstrip and caulk the obvious leaks. Close blinds on the sun-facing side during the afternoon. In a Texas summer, blocking direct sun through windows takes a real load off the AC.

4. Switch to LED lighting

LED bulbs use a fraction of the electricity of old incandescent bulbs and last far longer. They also give off much less heat, which matters in summer because every bit of waste heat indoors is something your AC then has to remove.

5. Tame the water heater and the laundry

The water heater is often the second-largest user after the AC. Wash clothes in cold water when you can, run full loads, and clean the dryer lint trap every time. If your water heater has an adjustable thermostat set higher than you need, lowering it a little trims standby cost without anyone noticing.

6. Unplug the always-on "phantom" loads

Game consoles, chargers, cable boxes, and older electronics draw power even when they look off. Individually each is small, but together they run twenty-four hours a day, every day. A smart power strip or simply unplugging the worst offenders quietly removes that baseline draw.

7. Shift heavy use to off-peak hours

Some Texas plans charge different prices at different times of day, and even on a flat plan the grid is most strained on hot late afternoons. Running the dishwasher, laundry, and pool pump later in the evening eases your usage off the most expensive part of the day. Whether this saves you money depends on your specific plan, which brings us to the part that ties it all together.

Key insight

Using less electricity only lowers your bill if your rate is fair to begin with. The habits above cut how many kilowatt-hours you use; your plan decides what each one costs. Both have to be right.

The move most people skip: check the plan behind the bill

You can do everything above and still overpay if you are on the wrong plan. In deregulated Texas you choose your retail electricity provider, and the price you pay is spelled out on a document called the Electricity Facts Label (EFL). Every plan has one. It shows the energy charge, the TDU delivery charges that get passed through, and any monthly base fee or minimum-usage fee.

A few things on the EFL are worth reading carefully:

Because rates and plans differ by service address, the only way to see your real numbers is to compare the actual EFLs available where you live. That is exactly what we help with.

How Energy Direct fits in

Energy Direct is a local independent Ambit Energy consultant. You give us your ZIP or service address, and we help you compare the plans available at your location so you can match a plan to how your household actually uses electricity, including the off-peak habits above. There is no charge to compare, and when you pick a plan, Ambit handles the switch. There is no interruption to your power and no second account to set up. If you would rather talk it through, call or text us at (361) 582-9724.

Bottom line

A smart thermostat does the heavy lifting because it manages your biggest load automatically. Stack maintenance, sealing, LEDs, smarter water-heater and laundry habits, killing phantom loads, and off-peak timing on top of it, and you genuinely use less. Then make sure the plan behind your meter is a fair one. Read the EFL, compare by your actual address, and you will have both sides of the bill working for you.

See your real rate by address

Enter your ZIP to compare the plans available at your Texas address and enroll online.

Call or text (361) 582-9724

Frequently asked questions

Does a smart thermostat really lower a Texas electric bill?

It can, because air conditioning is usually the largest part of a Texas summer bill and the thermostat controls it. A smart thermostat eases off cooling when you are away or asleep and cools the house back down before you return, so the compressor runs fewer hours. The exact savings depend on your home, your settings, and your electricity rate.

What temperature should I set my thermostat in a Texas summer?

The U.S. Department of Energy's guidance is to set the thermostat as high as is comfortable while you are home, and higher when you are away or asleep. A smart thermostat schedules this automatically. Every degree higher in summer means the AC compressor runs less and uses less electricity.

What is an Electricity Facts Label (EFL)?

An EFL is a standard disclosure document every Texas retail electricity plan must provide. It shows the energy charge, the TDU delivery charges passed through, any monthly base fee or minimum-usage fee, the price at different usage levels, whether the rate is fixed or variable, the contract length, and any early termination fee. Reading the EFL is how you compare plans accurately.

How do I find the cheapest plan for my home?

Compare the actual Electricity Facts Labels available at your service address at your real usage level, since rates and plans differ by location and by how much you use. Energy Direct compares the plans available at your ZIP for free, and Ambit handles the switch with no interruption to your power. Call or text (361) 582-9724.