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Texas ranks low on most energy-efficient states report

by the numbers

Texas ranked in the bottom half on WalletHub's list of the most energy-efficient states. Photo via unsplash.

Texas has room to improve when it comes to energy efficiency, recent data from WalletHub shows.

The personal finance website ranked Texas at No. 35 on the latest Most & Least Energy-Efficient States list. Texas improved by one spot on the 2025 report, after coming in at No. 36 last year.

The report measured and ranked the efficiency of auto energy and home energy consumption in the 48 U.S. mainland states based on data from the U.S. Census Bureau, National Climatic Data Center, U.S. Energy Information Administration and the U.S. Department of Transportation – Federal Highway Administration.

Texas earned an overall score of 50.60. It was ranked No. 27 for home energy efficiency and No. 41 for auto efficiency. By comparison, No. 1-ranked Vermont earned a score of 85.30, ranking No. 2 for home energy and No. 6 for out energy.

The top five overall states included:

  • No. 1 Vermont
  • No. 2 California
  • No. 3 Washington
  • No. 4 New York
  • No. 5 Massachusetts

South Dakota earned the top rank for home energy efficiency, and Massachusetts earned the top rank for energy efficiency.

“Energy efficiency doesn’t just help save the planet – it also helps save you money by lowering the amount of electricity, gas, oil or other types of energy you need to consume. While there are some steps you can take to become more energy-efficient on your own, living in the right area can give you a big boost," WalletHub analyst Chip Lupo said in the report. "For example, certain states have much better public transportation systems that minimize your need to drive, at least in big cities. Some places also have better-constructed buildings that retain heat better during the winter or stay cooler during the summer.”

According to the report, some progress is being made in increasing energy efficiency across the country. The U.S. Energy Information Administration expects 26 percent of electricity generation in 2026 will come from renewables. A number of them are being developed in the Houston area, including recent announcements like the Pleasure Island Power Collective in Port Arthur.

Still, Houston earned an abysmal ranking on WalletHub's greenest cities in the U.S. report earlier this year, coming in at No. 99 out of 100. Read more here.

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Texas fell four spots on WalletHub's annual Greenest States report. Photo via Pexels

Texas falls lower on national ranking of greenest states for 2025

room to improve

Texas dropped in the rankings on WalletHub's Greenest States 2025 report.

The report, released last month, considered 28 relevant metrics—from air and water quality to the number of alternative fuel stations and green buildings per capita—to call out states doing the best (and worst) jobs of caring for the environment.

Texas came in at No. 42 out of 50, with a total score of 42.54 out of 100. Last year, the Lone Star State ranked No. 38 with a score of 50.40 based on 25 metrics.

Texas' poor ranking was driven by its last-placed ranking, coming in at No. 50, for overall environmental quality. It was tied for No. 45 for air quality and ranked No. 46 for water quality, which helped comprise the overall environmental quality score.

Other metrics fell closer toward the middle of the pack. The state ranked No. 32 for eco-friendly behaviors and No. 39 for climate-change contributions.

California also fell on the annual report. While the state claimed the top spot in 2024, it came in at No. 7 this year. Vermont, which came in second in 2024, was named the greenest state in 2025.

Hawaii, which didn't crack the top five last year, was ranked No. 2 on the 2025 report. New York, Maryland and Maine rounded out the top five this year.

West Virginia was the country's least green state again this year, followed by Louisiana, Kentucky, Alabama and Mississippi.

The report also showed that Democrat-led states ranked around No. 12 on average, whereas Republican states fell at around No. 33.

While the WalletHub report seems bleak for Texas, others have shown more positive signs for the state. Texas was ranked slightly above average in a recent ranking of the best states for sustainable development. A recently released U.S. Energy Storage Monitor shows that Texas led all states and surpassed California in the fourth quarter of 2024 by installing 1.2 gigawatts of utility-scale energy storage for solar and wind power.

Still, WalletHub also recently ranked Houston No. 98 out of 100 of the largest cities on its Greenest Cities in America report. Read more here.

Source: WalletHub
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5 must-read Houston energy headlines: Veriten venture fund, ERock IPO + more

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Editor's note: The month of May brought big news for the Houston energy sector, including a flagship energy venture fund and IPO updates. Here are the five most-read EnergyCapital stories published May 14-29, 2026:

1. Houston investment firm closes $105M energy venture fund

Houston-based investment firm Veriten has announced the initial close of its second flagship energy venture fund with more than $105 million in capital commitments. Fund II will build on Veriten’s initial fund and aim to support “scalable technology solutions for energy, power and industrial applications.” Veriten is supported by over 50 strategic partnerships in the energy, power, industrial and technology sectors, including major players like Halliburton and Phillips 66.

2. Buoyed by $1.3B sales backlog, microgrid company ERock files for IPO

Another energy company in Houston is going public amid a flurry of energy IPOs. Houston-based ERock Inc., which specializes in utility-grade onsite microgrid systems for data centers and other customers, has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to sell its shares on the New York Stock Exchange. The ERock filing follows the recent $1.9 billion IPO of Houston-based Fervo Energy, a provider of geothermal power that’s now valued at $7.7 billion.

3. Houston renewables developer signs agreement with Meta for new solar project

Houston-based EDP Renewables North America has signed a long-term power purchase agreement with Meta, the parent company of Facebook and Instagram, for its forthcoming Cypress Knee Solar project. The 250‑megawatt solar project will be built in Arkansas and is expected to come online by 2028. The company says the project will generate approximately $25 million in new revenue for Chicot County once operational.

4. Houston energy expert asks: Who pays when AI outruns the power grid?

For most of the past 20 years, U.S. electricity policy relied on predictable trends in demand. Electricity use, in most regions, increased gradually, forecasts were stable, and utilities adjusted the system in small steps. Power plants, transmission lines, and substations were generally added to reflect shifts in load, rather than growth, and costs were recovered through modest adjustments to customer bills. Growth in AI data centers has disrupted this model. A single facility can add as much electricity demand as a small town. That demand comes all at once, runs continuously, and has little tolerance for outages. If electricity service drops even briefly, computation stops, and services shut down. Ironically, data centers need reliable service, a point that their emergence is driving concern around for the rest of the grid.

5. Report shows geoscientists earn largest salary premium in Texas

A move to Texas bolsters earnings for some, and a new SmartAsset study has revealed the top professions where the median annual earnings in the Lone Star State exceed the national median. According to the report's findings, geoscientists have the biggest "Texas premium" and make a $159,903 median annual salary. Texas' salary for geoscientists is 61 percent higher than the national median for the same position (after adjusting for regional price parity).

Greentown names 5 climatech startups to manufacturing accelerator

Catalyst Cohort

Greentown Labs has named five climatech startups to its Go Make 2026 cohort, including one from Houston.

Greentown Go Make 2026 is in partnership with Shell Catalysts & Technologies and Technip Energies. Startups will be able to collaborate with leadership from Shell and Technip and have opportunities to work directly with their process engineering teams and develop potential partnerships, pilots and demonstrations, according to Greentown.

This year's manufacturing cohort focuses specifically on process technology and catalytic innovations, which, according to Greentown, have the potential to be a "critical enabler of the global energy transition." Greentown shares that 90 percent of chemical processes depend on catalysis, but traditional methods rely on fossil fuels and consume significant amounts of energy.

“Catalysis underpins the majority of industrial chemical processes, which together account for a significant share of global emissions, making it a critical lever for reducing carbon intensity while improving performance,” Georgina Campbell Flatter, CEO of Greentown, said in a news release. “Greentown Go Make 2026 is designed to close the gap between breakthrough innovation and industrial deployment. By connecting startups with Shell and Technip Energies’ technical expertise and global scale, we’re helping accelerate solutions that improve efficiency and drive industrial decarbonization.”

The five Greentown Go Make 2026 companies include:

  • Houston-based Biosimo, which makes scalable biochemicals from ethanol
  • Missouri-based Catalyxx, which transforms bioethanol into drop-in, cost-competitive, carbon-negative chemicals
  • Sydney, Australia-based HydGene Renewables, which produces low-carbon hydrogen and industrial chemicals from waste biomass
  • Switzerland-based TreaTech, which turns waste into renewable gas, water and minerals through catalytic hydrothermal gasification
  • California-based Unifuel, which has developed a chemical technology platform to make sustainable aviation fuel, renewable gasoline and other renewable chemicals

The cohort will be celebrated at a kickoff event in Houston at The Ion on June 9.

In addition to Greentown Go Make, Greentown also runs its Go Move (transportation), Go Energize (energy and electricity), Go Build (buildings), and Go Grow (food and agriculture) cohort-based programs. The climatech incubator announced its Go Build 2026 cohort in March. Read more here.

Houston developer launches AI-powered water platform to boost efficiency

eyes on AI

Houston real estate company McCord Development has launched an artificial-Intelligence-run water management platform, MizuWatch.

MizuWatch aims to help operators, districts, and municipalities detect leaks faster, reduce water loss and improve efficiency, according to the company. MizuWatch pulls data from supply sources, smart meters, historical usage and maintenance records, and combines them into a single platform. The AI system also uses visual mapping and digital twin technology to deliver near-real-time system insights.

“MizuWatch brings the right data together daily, so teams can see what’s happening now, intervene earlier and focus their resources where they have the greatest impact,” Jerzy Wielgus, chief product officer for MizuWatch, said in a news release.

MizuWatch was built to “scale across geographies and system sizes to help assist with water scarcity, aging infrastructure, and operational complexity,” according to the company. It was developed at Houston’s Generation Park, McCord’s 4,300-acre master planned commercial district. McCord was able to pilot the platform onsite to help manage its complex, real-world water systems at scale.

“Resilient infrastructure is a key factor for the companies choosing Generation Park,” Ryan McCord, CEO of McCord Development and Founder & CEO of MizuWatch, added in the release. “We made the decision to deploy smart meters, but no one knew how to use the data they generate. This is an opportunity across all infrastructure where sensors are deployed. What started as an internal solution has become a platform we believe can help stakeholders everywhere be more efficient in their operations, investment, and compliance.”

Last fall, Eli Lilly and Co. selected Generation Park for its $6.5 billion manufacturing plant. More than 300 locations in the U.S. competed for the factory. Bristol Myers Squibb Co., another pharmaceutical giant, also announced it is considering Generation Park for a new manufacturing hub earlier this month.

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