The Lone Star State is an economical option when it comes to energy costs, a new report has found.

Personal finance website WalletHub analyzed energy affordability across all 50 states in its recent report, "Energy Costs by State in 2024," which looked at residential energy types: electricity, natural gas, motor fuel, and home heating oil.

Texas ranked as the fourth cheapest state for energy, or No. 47 in the report that sorted by most expensive average monthly energy bill. Texans' average energy cost per month is $437, the report found.

Here's how Texas ranked in key categories, with No. 1 being the most expensive and No. 50 being the cheapest:

• No. 27 – price of electricity
• No. 15 – price of natural gas
• No. 44 – natural-gas consumption per consumer
• No. 40 – price of motor fuel
• No. 16 – motor-fuel consumption per driver
• No. 49 – home heating-oil consumption per consumer

With the most expensive state — Wyoming — being more than four times the cost compared to the cheapest state — New Mexico, the difference between energy costs among states varies greatly, but the reason for that isn't exactly a mystery.

“Energy prices vary from state to state based on several factors including energy sources, supply and demand, energy regulation, regulatory authorities, competition, and the free market," explains expert Justin Perryman, a professor at Washington University School of Law, in the report. "[States] such as Texas have a deregulated electricity marketplace. Missouri and 17 other states have a regulated energy market. In deregulated markets there are typically more energy providers which often leads to more competition and lower prices, however, other factors can contribute to energy prices.

"In regulated markets, the state energy regulatory authority sets the prices of energy," he continues. "It can be politically unpopular to raise energy costs, so those states may benefit from lower energy costs. Factors such as the state’s commitment to renewable energy may also factor into energy costs. Proximity to less expensive energy sources can lower energy costs.”

Texas' evolving energy landscape has been well documented, and earlier this year the state's solar energy generation surpassed the output by coal, according to a report from the Institute For Energy Economics and Financial Analysis.

A separate report found that, when compared to other states, Texas will account for the biggest share of new utility-scale solar capacity and new battery storage capacity in 2024. According to the U.S. Energy Information Administration, the state will make up 35 percent of new utility-scale solar capacity in the U.S. this year.

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This story originally appeared on our sister site EnergyCapitalHTX.