How Much Does Electricity Cost in Your State? |

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How Much Does Electricity Cost in Your State?

Like running water, the price of electricity is something we don’t typically worry about until after a high electricity bill arrives. But understanding how much electricity costs – and how the price changes over time – is the first step toward lowering your energy costs.

In this article, we’ll explore the cost of electricity in each state and how it affects your monthly electricity bill.

Cost of electricity per kWh by state

Measured in cents per kilowatt-hour (kWh), the national average cost of electricity reached 16.92 cents per kWh in September 2023 (the latest data available by the Energy Information Administration). However, the average price ranged from 11 cents in Washington State to nearly 40 cents in Hawaii. 

Use the electricity price chart below to see the average cost of electricity per kWh in your state.

Which states have the highest electric rates?

Hawaii consistently has the highest utility electricity rates in the country due largely to its reliance on imported petroleum for over 80% of its electricity generation. As of September 2023, the average price of electricity was 41.52 cents per kilowatt-hour – nearly 10 cents higher than the next closest state (29.25 c/kWh in Connecticut).

Top 10 states with the highest electricity rates:

Rank State Average residential electricity rate (cents/kWh)*
1 Hawaii 41.52
2 California 29.99
3 Connecticut 29.25
4 Massachusetts 28.00
5 Rhode Island 26.94
6 Maine 26.86
7 Alaska 24.50
8 New Hampshire 23.31
9 New York 23.23
10 Vermont 21.21

*Based on latest data from the Energy Information Administration (EIA)

Which state has the cheapest electricity?

The competition for the lowest electricity rates is much tougher than for the highest rates, with Washington, Louisiana, and Idaho typically leading the charge.

Top 10 states with the lowest electricity rates:

Rank State Average residential electricity rate (cents/kWh)*
51 Washington 11.38
50 Louisiana 11.39
49 Idaho 11.60
48 Utah 11.85
47 Tennessee 11.85
46 Nebraska 12.39
45 Kentucky 12.43
44 Wyoming 12.64
43 Arkansas 12.67
42 North Dakota 12.77

*Based on latest data from the Energy Information Administration (EIA)

How much does electricity cost per month?

The average monthly electricity bill in the US is $149 per month (not including fixed fees) based on utility rates for September 2023. This figure includes all housing types and sizes. However, electricity costs tend to vary by the size of the house and the number of people living in it.

For example, based on July 2023 utility rates:

The average bill also depends on local utility rates and electricity consumption.

For example, Louisiana has some of the cheapest grid electricity in the nation, but it also has the highest residential electricity consumption per household and therefore some of the highest monthly electricity costs. Meanwhile, Vermonters pay a premium for grid electricity, but use fewer than 600 kWh per month, on average, and therefore have relatively low electricity costs.

State Avg. electricity price (September 2023) Avg. monthly consumption Average electricity costs per month
Connecticut 29.25 cents per kWh 713 kWh $209
Louisiana 11.39 cents per kWh 1,192 kWh $136
Vermont 21.21 cents per kWh 567 kWh $120
New Mexico  15.25 cents per kWh 646 kWh $99

Every state has a unique combination of electricity prices and consumption that make up an average electric bill. While electricity consumption largely depends on heating and cooling needs based on climate conditions, utility rates are affected by a mess of economic and political market forces that are too much to untangle here.

The map below shows the average electric bill for each state in 2024, based on the latest available utility rate data. It's worth noting that electricity costs vary throughout the year with your consumption habits.

Until the last decade or so, homeowners could only lower their electricity costs by reducing their consumption. However, between the rising cost of utility electricity and robust solar incentives (including a 30% tax credit available in every state), homeowners can now lower their electric bill by installing solar panels.



What costs the most on an electricity bill?

Heating, cooling, and home EV charging typically use the most electricity in a household and therefore cost the most on an electricity bill. Heating and cooling make up between 30-50% of the average household’s electricity consumption, while charging an EV requires around 300 kWh per month for a driver traveling 37 miles per day (the national average).

It’s worth noting that heating and cooling can only realistically (and safely) be reduced so far in an era of extreme weather events, and EV charging is much cheaper than fueling a gas car.

So, it’s far more effective to lower your electricity rate than to shave down your heating, cooling, and EV charging usage.

Lower your electricity costs with solar

Utility electricity rates jumped nearly 13% nationwide in 2022, substantially increasing the cost of electricity in 2023. Many homeowners are just starting to feel the effects of that increase as their summer bills roll.

If you are unhappy with your electricity costs, connect with an Energy Advisor to design a custom solar system and compare binding quotes from local installers.


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