Energy Poverty in Texas: The Crisis Hiding in Plain Sight

ByClean Energy Fund of Texas Team

When people think about poverty in Texas, they may picture a lack of housing, food insecurity, or limited healthcare access. But there’s another form of hardship that’s just as real, and just as dangerous: energy poverty.

What Is Energy Poverty?

Energy poverty, also known as energy burden, refers to the percentage of a household’s income that goes toward utility bills. The higher the percentage, the heavier the burden. National experts generally define a household as energy burdened if it spends more than 6% of its income on energy or severely burdened if that figure exceeds 10%.

For low- to moderate-income families across Texas, energy burden isn’t a theoretical statistic, it’s a monthly stressor that forces tough choices: Food or electricity? Medication or cooling?

Energy Poverty by the Numbers

Greater Houston:

  • 7.1% median energy burden for low-income households
  • 1 in 4 low-income households spend over 12% of income on energy
  • 80% of low-income residents have had to cut back on basic needs just to keep the lights on

South Texas (Rio Grande Valley and surrounding areas):

  • Electricity costs surged 70% in one year, adding $80/month to household bills
  • Over 58% of households earn less than $50,000, with high poverty levels in counties like Hidalgo
  • Many homes are older and inefficient, amplifying the burden

Texas (Statewide):

  • Average low-income family spends 12.5% of income on energy
  • Nearly 1 in 4 low-income Texans is considered energy poor
  • 72% report cutting household expenses to pay the electric bill
  • 40% say their energy bill is simply unaffordable

These numbers aren’t just numbers — they’re stories of families who sleep in sweltering homes, kids who do homework in the dark, and elders who ration AC to avoid heat stroke and unpaid bills.

How Do We End Energy Poverty?

We don’t end energy poverty by telling people to “turn off the lights.” We end it by investing in energy efficiency and renewable energy and making those investments accessible to those who need them most.

That’s where Clean Energy Fund of Texas (CEFTX) comes in.

Our Solution: Access to Clean Energy for All

At CEFTX, we believe that clean energy isn’t just for the wealthy; it’s for everyone . . . especially the families most affected by high utility bills.

We offer affordable, inclusive loan products to help families:

  • Upgrade to solar + battery storage systems
  • Install insulation, efficient HVAC systems, or new roofs
  • Replace outdated appliances and eliminate costly energy waste

Our financing options are designed specifically for low- to moderate-income (LMI) families, with terms that lower monthly energy costs by 20–30%. That level of savings can be life-changing for households struggling with energy poverty.

We don’t just reduce emissions, we reduce bills and help people breathe easier, sleep cooler, and live with dignity.

LEARN MORE ABOUT OUR FINANCING OPTIONS

Join Us in Fighting Energy Poverty

Texas leads the nation in energy production but far too many of our neighbors can’t afford to keep their homes livable. Together, we can change that.

Whether you’re a homeowner in need of relief, a contractor looking to make a difference, or a policymaker shaping the future . . . the solution starts with access.

Learn more about how CEFTX is powering up families and powering down poverty at cleanfundtx.org.

By “Theo” Gervais Woodard, Business Development Manager, CEFTX

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