GCU News & Blog

Tag: Energy costs

  • Texas Electricity in 2025: How to Avoid “Bill Credit” Traps and Find a True Fixed Plan

    Texas has a deregulated electricity market, meaning you choose your own plan. With 40+ retail providers, shopping can be more complicated than it should be. Some providers and comparison sites use tactics that confuse shoppers, so many Texans end up overpaying.

    Why this matters for real estate: if you’re closing on a home, managing rentals, or advising clients, the plan you choose affects operating costs and cash flow.

    Here are a couple of examples of how people usually shop for electricity in Texas.

    Google Search

    You search for “best electricity plans in Texas,” and comparison sites pop up first. Most highlight teaser rates such as “9.9¢/kWh at 1,000 kWh.” You have to read carefully—these are usually bill‑credit plans. They might say “bill credit,” but rarely explain how they actually work—or how they can spike your bill.

    AI / ChatGPT

    Many people now rely on AI, like Google’s AI Overviews or Chat-GPT to guide decisions. Ask for the “best electricity plans,” and it may list “cheapest plans,” like:

    • Company 1 → 9.5¢/kWh @ 1,000 kWh
    • Company 2 → 9.6¢/kWh @ 1,000 kWh
    • Company 3 → 9.7¢/kWh @ 1,000 kWh
    • Company 4 → 9.5¢/kWh @ 1,000 kWh
    • Company 5 → 9.6¢/kWh @ 1,000 kWh

    Even if there’s a warning that these might be bill‑credit plans, you still get the list. The catch: those options are almost always bill‑credit plans—and rarely the best deal for most households.

    What is a bill‑credit plan, and how do you spot one?

    A bill‑credit plan adds a fixed credit (for example, $50 or $100) once your monthly usage crosses a set threshold—often 1,000 kWh. The problem: they look cheaper than they are. If your usage is below or above the target, you lose the credit and your real price per kWh jumps.

    Providers show this in the Electricity Facts Label (EFL). A typical example looks like:

    • 500 kWh → 22.9¢/kWh
    • 1,000 kWh → 9.9¢/kWh
    • 2,000 kWh → 15.9¢/kWh

    That “9.9¢/kWh” only applies near 1,000 kWh. Very few households land exactly at 1,000 kWh each month. A medium‑size home (around 2,500 sq. ft.) typically uses roughly 500–1,800 kWh per month, depending on the season. As your usage moves away from 1,000 kWh, the effective rate climbs.

    In milder months (January, February, March, November, December) usage often falls under the threshold, and the effective price can jump above 22¢/kWh—nearly double a good True Fixed plan.

    How to avoid the bill‑credit trap

    • Start at PowerToChoose.org, the state‑run marketplace from the Public Utility Commission of Texas. Filter for fixed‑rate plans and open each Electricity Facts Label (EFL).
    • Avoid “as‑low‑as” pricing tied to usage ranges. In the EFL, a true fixed plan shows the same all‑in price at 500, 1,000, and 2,000 kWh and $0 in bill/usage credits.
    • Use your Smart Meter Texas data (hour‑by‑hour usage) to match a plan to your actual pattern—especially helpful for new homeowners, landlords, and property managers with seasonal swings.
    • Tools like Clear Energy Facts categorize plans and flag bill‑credit structures (including those on Power to Choose). You can safely search for the best True Fixed plans in your area.

    The bottom line

    When you’re shopping for electricity in Texas, prioritize true fixed‑rate plans. Confirm in the Electricity Facts Label that the all‑in price per kWh is flat across 500/1,000/2,000 kWh and that any bill or usage credit is $0. Use Smart Meter Texas data to choose confidently. Clear Energy Facts lets you upload your data, analyze past usage, and surface true fixed plans that fit your home or rental portfolio.

  • How Rising Energy Costs Are Shaping Homeownership in Texas

    Energy costs are rising, and for many Texans, that’s not just a budget line item. It’s a tipping point. As utility bills spike, people across the state are rethinking the realities of homeownership. A recent study from Home Energy Club digs into how different generations are adjusting their expectations and strategies in the face of rising energy costs.

    Texans Losing Faith in Homeownership

    Across Texas, more people are starting to question whether homeownership is still a realistic goal. Two-thirds of Texans in the survey said they’ve lost faith in the American Dream because of rising housing and energy costs. Millennials and Gen Z felt especially discouraged, 72% and 69%, respectively, said they’re feeling squeezed out. For baby boomers, the number was still significant at 42%.

    And the frustration isn’t just a mindset issue. It’s financial. About 80% of respondents said that the cost of electricity is making it harder to afford a home in Texas. Roughly one in ten homeowners said they’ve had trouble covering their mortgage due to high energy bills. 15% have even thought about selling their homes to lower their bills.

    Energy Efficiency Efforts and Limitations

    Texans are making small changes to adapt. The survey shows a clear effort among homeowners to cut energy use and lower their bills. Here’s what they’re doing:

    • Using less and switching to LEDs: 59% of homeowners are focusing on reducing how much energy they use and switching to LED lighting.
    • Sealing drafts and improving insulation: 46% are sealing air leaks, and 41% are upgrading to more efficient appliances.
    • Installing smart thermostats and adding insulation: Roughly a third have installed smart thermostats or improved insulation.

    But some solutions are still out of reach. Only 9% have installed solar panels. And 68% of both homeowners and buyers said options like solar simply aren’t realistic for most households right now.

    Government Incentives Fall Short

    Tax credits and energy rebates may look promising on paper, but many Texans say they’re not seeing the benefits. Almost half of homeowners in the study said government incentives aren’t enough to ease the burden. Only a quarter said those programs were making a real difference.

    Part of the problem is that people are confused. Some homeowners said they don’t fully understand the requirements or steps involved in applying for these benefits. That uncertainty discourages many from using the programs designed to help them save.

    What Today’s Buyers Want

    With costs in mind, buyers are changing what they want in a home. Energy efficiency is at the top of the wishlist:

    • Energy efficiency has become the top priority for today’s homebuyers, with 66% of buyers favoring them.
    • Smaller homes and new builds with good insulation and energy-efficient systems are catching buyers’ attention.

    Older homes have lost their appeal. Only 16% of buyers were interested in homes without efficiency upgrades. Downsizing is becoming a practical choice, especially among Gen X and baby boomers—73% and 70% said they’re thinking smaller to keep costs down.

    Impacts Across Generations

    Each generation is responding to rising energy costs in its own way. Gen Z is focusing on insulation, Gen X and millennials are dialing back their energy use, and boomers are making simple changes like switching to LED lighting.

    Younger buyers still believe things can improve. Nearly half of Gen Z respondents think solar and other tech solutions are within reach. Older generations are more skeptical, 74% of boomers and 71% of Gen Xers don’t think those options are affordable.

    The Bigger Picture: Reassessing the American Dream

    The numbers tell a tough story. About 46% of participants said they’re starting to believe that owning a home is less attainable because of energy costs. Another 16% went further, saying the dream feels completely out of reach.

    Only 18% believe owning a home is still realistic. Clearly, cost is a huge barrier, even for basic necessities, not just high-end features. Even basic affordability is in question for many families.

    What’s Next for Texas Homeownership Amid Energy Price Pressures

    Until energy prices stabilize or more affordable options emerge, Texas buyers will likely keep changing what they look for. Energy efficiency and overall cost-effectiveness are becoming essential, not extras. That shift is reshaping both buyer preferences and market behavior.

    We might also see lenders and appraisers start giving more weight to energy-saving features. If mortgage terms and home values start reflecting the long-term savings of energy efficiency, that could finally give buyers the nudge they need to invest in upgrades.

    This trend goes beyond home design, they’re changing how people think about what they can afford, where they can live, and whether the American Dream still makes sense today.