Commercial Electricity for Nursing Homes in Texas
What a Texas nursing home pays for power - round-the-clock comfort, hot water, kitchen, and laundry for residents who live there - plus how to lower the bill.
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Texas has over 1,500 nursing homes, and their electric bill looks like a hotel's that never checks out: 24/7 heating and cooling, constant hot water, full kitchens, and heavy laundry, plus medical equipment. Below is what nursing homes use and pay. See related guides for assisted living and hotels & motels, or browse all commercial electricity guides by business type.
Key Takeaways
- A typical Texas nursing home uses about 40,000–90,000 kWh a month (roughly $3,300–$7,500 at ~8.3¢/kWh).
- HVAC runs 24/7 for resident comfort and is the biggest load.
- Constant hot water, kitchen, and laundry add substantial steady load.
- Larger facilities and higher acuity use more.
- Efficient HVAC and water heating, LED, and a fixed rate are the biggest levers.
Nursing Home Electricity Snapshot
Figures are estimates that scale with beds and services. See methodology and sources below.
What It Costs to Power a Nursing Home
A nursing home is a 24/7 residence and care facility, so climate control, hot water, food service, and laundry all run continuously. Add medical equipment and long-hours lighting, and the bill resembles a mid-size hotel's with extra care loads.
Estimated usage & bill by facility size
| Facility size | Beds | Monthly usage | Est. monthly bill* |
|---|---|---|---|
| Small facility | ~40 beds | 25,000–45,000 kWh | $2,100–$3,700 |
| Typical nursing home | ~100 beds | 40,000–90,000 kWh | $3,300–$7,500 |
| Large facility | 180+ beds | 90,000–160,000+ kWh | $7,500–$13,000+ |
*Electricity portion at Texas's ~8.3¢/kWh average commercial rate. Some heating, hot water, and cooking may be on natural gas, billed separately.
How does the Texas commercial rate compare?
Texas businesses pay an average of about 8.3¢ per kWh - roughly 38% below the U.S. commercial average of ~13.5¢. Because Texas is deregulated, you can shop the supply portion of your bill across 30+ retail providers and lock in a fixed rate - compare current commercial electricity rates.
A 24/7 Residential-Care Load
Comfort and hot water lead a nursing home's bill, with kitchen, laundry, and lighting all running long hours for people who live there around the clock.
| System | Why it draws power | Approx. share | Est. cost / month* |
|---|---|---|---|
| HVAC | 24/7 heating and cooling for residents | 35–45% | $1,650–$2,100 |
| Water heating | Constant hot water for baths and care | 15–20% | $700–$940 |
| Kitchen | Meals prepared on-site every day | 10–15% | $470–$700 |
| Laundry | Heavy linen and resident laundry | 8–12% | $375–$560 |
| Lighting & medical/other | Long-hours lighting and care equipment | 12–18% | $560–$840 |
*Illustrative split of a ~$4,700/month typical bill. Where cooking and water heating are on gas, those electric shares drop.
Why Round-the-Clock Care Drives Demand Charges
Most of your bill is energy — the total kilowatt-hours (kWh) you use over the month. But many commercial accounts also carry a demand charge, billed on your single highest peak of power draw, measured in kilowatts (kW), usually over a 15-minute interval. It doesn't matter only how much electricity you use, but how fast you use it at your busiest moment.
How to keep demand charges down
- Shift laundry and kitchen prep away from the afternoon cooling peak.
- Zone and schedule HVAC for common areas separately from resident rooms.
- Pre-cool the building before the hottest part of the day.
- Watch your interval data to find the monthly peak.
Demand Response Without Affecting Care
Demand response is a program where businesses agree to reduce their electricity use for short windows when the Texas grid (ERCOT) is under strain — typically late afternoons on the hottest summer days. In exchange, participating businesses earn payments or bill credits.
Where Nursing Homes Cut Energy Costs
- Lock in a fixed commercial rate. Comparing 30+ Texas providers at the right time is usually the biggest single lever.
- Upgrade HVAC and add controls. Efficient units and a building management system cut the biggest 24/7 load.
- Improve water heating. Efficient or heat-pump water heating cuts a constant load.
- Switch to LED. LED throughout resident rooms, halls, and common areas cuts long-hours load.
- Run laundry and kitchen efficiently. Full loads, efficient machines, and off-peak scheduling reduce cost and peaks.
- Review demand and interval data. Knowing your peak kW shows whether a different rate structure would save money.
Related Commercial Electricity Guides
Frequently Asked Questions
How much electricity does a nursing home use in Texas?
A typical Texas nursing home of about 100 beds uses roughly 40,000 to 90,000 kWh per month, or about $3,300 to $7,500 at the state's average commercial rate of about 8.3¢ per kWh. Larger facilities use more.
What uses the most electricity in a nursing home?
HVAC runs 24/7 for resident comfort and is the biggest load, followed by constant hot water, on-site kitchen, laundry, and long-hours lighting plus care equipment.
What is the average commercial electricity rate in Texas?
Texas businesses pay an average of about 8.3¢ per kWh as of 2026, roughly 38% below the U.S. commercial average of about 13.5¢. Your actual rate depends on your ZIP code, utility (TDU), usage, and when you sign your contract.
How can a nursing home lower its electricity bill?
Upgrade HVAC with good controls, improve water heating, switch to LED throughout, run laundry and kitchen efficiently and off-peak, and lock in a competitive fixed commercial rate.
Do nursing homes pay demand charges?
Often yes. On a hot afternoon, full building HVAC runs with the kitchen and laundry, creating a peak in kilowatts that a demand charge bills across the month; shifting those loads off the cooling peak helps.
What is demand response and can a nursing home earn from it?
Demand response pays businesses to reduce use during short summer grid-peak windows. Resident care comes first, but a facility can shift laundry off-peak and ease common-area setpoints slightly during a peak window in exchange for bill credits.
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Get a Free Quote Call 866-284-9272Methodology & Sources
Business count: U.S. Census Bureau, County Business Patterns 2023 - 1,546 nursing care facilities (NAICS 6231) in Texas. Average commercial rate: EIA / state commercial averages (Texas ~8.3¢/kWh; U.S. ~13.5¢/kWh, 2026). Usage and the energy-user split are estimates that vary by beds, acuity, and gas-vs-electric cooking and heating. Bills are electricity-only and exclude natural gas, taxes, fees, and account-specific demand charges.
