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Texas falls short on list of most energy efficient states

Texas ranked as the 40th most energy efficient state, according to a recent report. Photo via Getty Images

The Lone Star State again failed to perform well on an annual ranking of the most energy efficient states.

Texas ranked as the 40th most energy efficient state, according to WalletHub's annual report. Only eight continental US states ranked poorer, including Oklahoma, Tennessee, Louisiana, Arkansas, Mississippi, Alabama, West Virginia, and South Carolina, respectively.

Source: WalletHub

The report looked at home and auto energy efficiency, as the report's methodology outlines.

"We obtained the former by calculating the ratio of total residential energy consumption to annual degree days. For the latter, we divided the annual vehicle miles driven by gallons of gasoline consumed to determine vehicle-fuel efficiency and measured annual vehicle miles driven per capita to determine transportation efficiency," reads the study.

Texas scored a 36 out of 50 points for home energy efficiency and 41 points for auto energy efficiency.

The report's experts were asked about federal incentivization of energy efficiency for customers, and all were in agreement that this is key to the future of energy.

"Energy conservation is a big piece that needs to be tackled efficiently for us to make any progress on energy transition. Incentivizing consumers and businesses is necessary but only if there is a clear demonstration of changes in personal and business work/living habits that reduce the energy footprint," says Sanjay Srinivasan, director at EMS Energy Institute and professor at Pennsylvania State University.

Another recent report looked at Texas from the solar perspective, and Houston failed to place in the top 15 most "solar" cities in the United States. However, Austin led the way for Texas, ranking the No. 3 most “solar” city in the U.S., per Thumbtack. Austin, with the highest net-new solar panel installations within the past year in Texas, split up four Californian cities in the top five. Only San Diego (No. 1) and Los Angeles (No. 2) outranked Austin.

While there's room for improvement for efficiency, Texas has among the best prices for energy, as WalletHub found in a report this summer. Texas ranked No. 49 on the list of the 2023 Most Energy-Expensive States.

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A View From HETI

SunRoper Solar is slated to begin operations in December 2027. Photo courtesy OCI Energy

Crews have broken ground on the forthcoming 347-megawatt direct-current SunRoper Solar project in Wharton County, Texas, that will add capacity to the ERCOT grid.

The solar project, which is slated to begin operations in December 2027, will provide electricity to an undisclosed Fortune 100 company under a long-term power purchase agreement, according to a news release.

San Antonio’s OCI Energy and Israel's Arava Power are developing the project. It's being financed by ING Capital and constructed by Louisiana-based WHC Inc. The project received $394 million in construction financing in February.

"SunRoper demonstrates how strategic partnerships can help meet Texas' growing demand for electricity through investments in critical energy infrastructure," Sabah Bayatli, president of OCI Energy, said in the release.

Project partners, landowners and company executives attended a groundbreaking event for SunRoper on Sept. 1 at the site outside of the Houston metro area. The companies say they are advancing this energy project to strengthen grid reliability and to help deliver affordable power to one of the highest-demand areas in the state.

“WHC is proud to serve as EPC contractor on the SunRoper Solar project, bringing our construction expertise to bear on a facility that will deliver meaningful power to the Houston region,” Randel Badeaux, president of power North America for WHC, added in the news release. “This groundbreaking reflects months of careful planning and coordination with OCI Energy, Arava Power and our project partners, and we look forward to executing a safe, high-quality build through to completion in 2027.”

OCI Energy currently operates several utility-scale solar and battery energy storage system projects outside of the San Antonio area, and has five other projects under construction outside of San Antonio and Waco, with more than 30 under development in Arkansas, Mississippi, Georgia, Colorado and Alberta, Canada. The company also has existing projects in New Jersey and Georgia.

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