There are plenty of articles that claim you can cobble together “6 energy savings tips” or “use one magic device” to cut your electric bill by 75 percent. Well, we have good news and bad news.

The good news is that it’s totally possible to lower your electricity bill by 75% or more. The bad news is that it’s not as easy as changing a few light bulbs and unplugging appliances (as other articles suggest).

Making deep cuts to your electricity bill requires a combination of reducing your consumption and the price you pay for electricity. So, in this article, we’ll explore: 

• Why cutting consumption alone won’t lower your bill by 75%
• How to actually cut your electric bill by 75%

Let’s start with a quick look at why cutting 75% of your electricity consumption simply isn’t realistic or effective.

Why focusing only on consumption won’t cut your your electric bill by 75%

There are no fewer than eight articles on Google (not including this one) that offer a path to reducing your electricity bill by 75%, all of which are basically lists of ways to reduce your electricity consumption. Not a single one provides math showing how to get to 75% reduction or even considers reducing the price you pay for electricity. 

They also gloss over the fact that cutting 75% of your electricity consumption is unrealistic, inefficient, and downright miserable. 

The chart below shows the electricity usage breakdown for the average household in the US. Even if you eliminated the top 13 items on the list – from air conditioning to refrigeration to running the dishwasher – you’d still only achieve 67% reduction. 

So, cutting your bill by 75% by reducing consumption alone isn’t realistic, unless your plan is to have a hot, dark house, dirty clothes, cold showers, unrefrigerated food and no screens whatsoever. 

But that doesn’t mean you can’t make meaningful cuts to your consumption that can help you get to 75% bill reduction, as we’ll see below.

Related reading: How To Lower Your Electric Bill With Solar Panels

How to cut your electricity bill by 75 percent

Cutting your electricity bill by 75% requires a combination of cutting consumption, sealing your home envelope, and reducing the cost per kilowatt-hour of your essential electricity needs.

Reducing the price you pay per kWh of electricity is far more effective for lowering your costs than cutting your consumption 1 kWh at a time by unplugging appliances and other such strategies. Many homeowners overlook reducing their electricity prices because, frankly, it wasn’t an option until very recently. However, with utility rates rising and robust incentives, home solar is an effective way to reduce the price you pay for electricity and, by extension, your electric bill.

For example, the average price of grid electricity reached 17 cents per kWh in June 2023, according to the US Bureau of Labor Statistics. Meanwhile, homeowners that purchase solar with cash and claim the 30% federal solar tax credit can typically produce their own electricity at around 8 cents per kWh.

That’s a 53% decrease in the price you pay for electricity.

And if you live in a state with electricity prices closer to 25 cents/kWh – like California, Massachusetts, Connecticut, or New York – going solar could easily reduce your price per kWh by 65% or more. 

Slashing your rate adds up to major energy cost savings over time.

The chart below shows the cumulative cost for four different methods of buying 750 kWh of electricity per month. Accumulating solar savings can take time, but in the long run the average homeowner can reduce their electricity costs by:

• 67% if they pay cash and collect the 30% tax credit
• 47-56% if they take out a loan and collect the 30% tax credit

With solar providing 50-65% of the electricity bill reduction, you only need a few effective and realistic conservation strategies to get to 75%.

Here’s a pretty simple path to cut your electricity usage by 20% and achieve 75% bill savings overall.

How to cut your electricity usage by 20%

The greatest opportunity to conserve electricity is by setting your thermostat 7-10 degrees higher or lower for 8 hours a day. So, if you typically have your house at 72 degrees, set the thermostat to 79-82 degrees in the summer when (and if) everyone is out of the house. In the winter, set it down to 62-65 degrees.

If you do this consistently, you can save up to 10% on your electricity bill, according to the US Department of Energy (DOE).

The next biggest opportunity is to unplug appliances when they’re not in use. According to the DOE, standby power (aka “vampire power”) accounts for 5-10% of household electricity usage – which is a substantial chunk.

You can lower this drain on your consumption by unplugging appliances, using smart plugs and/or power strips, and upgrading to energy efficient appliances. Some key appliances to focus on are:

• Bathroom: Hair dryers, curling irons, electric shavers
• Kitchen: Microwaves, toaster ovens, coffee makers
• Living room: Older entertainment devices (cable boxes, DVRs, DVD players)
• Office: Laptops, PCs, gaming consoles
• Bedroom: Phone chargers, lamps, fans

Let’s say this reduces your consumption by another 5% – you’ve only got 5% left to go!

From here, you have plenty of options:

• Lower the setting on your water heater from 140 to 120 degrees
• Increase the temperature on in your fridge up to 38 degrees (but never higher than 40!)
• Seal windows and doors to reduce heating and cooling costs even further
• Hang dry clothes to prevent running the clothes dryer
• Upgrade to LED bulbs and energy efficient appliances

I know, I know… I’m starting to sound like those other articles. But now we’re only talking about a 5% reduction instead of a 75% reduction. 

Solar is key to cutting your electricity bill

We are all for conserving electricity to reduce your energy costs and carbon footprint. However, it’s unrealistic to think you can cut your electric bill by 75% only by reducing your consumption.

Slashing your bill that far requires the two-pronged approach of lowering your usage and the price you pay per kWh of electricity – which you can do by installing solar panels. Home solar is the most effective way to reduce your electricity bill and gives homeowners unprecedented control over the price they pay for electricity. 

Connect with an Energy Advisor to see how far you can slash your rate!

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.

How Much Does Electricity Cost?

Electricity is measured in kilowatt-hours (kWh) and its price is typically measured by how many cents each kilowatt-hour costs (cents/kWh). So, How much does a kilowatt-hour of electricity cost? It depends!

The national average cost of electricity reached 17.6 cents per kWh head into 2025, according to the latest data available by the Energy Information Administration. However, electricity prices vary from utility to utility, and the average cost per kilowatt-hour in the U.S. ranges from 11 to 41 cents — quite a spread!

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

Electricity Cost per kWh by 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. Heading into 2025, the average price of electricity is more than 41 cents per kilowatt-hour – 11 cents higher than the next closest states.

Top 10 states with the highest electricity rates:

*Based on the 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:

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

How much does electricity cost per month?

The average monthly electricity bill in the US is $154 per month (not including fixed fees) based on utility rates for early 2025. This figure includes all housing types and sizes. However, electricity costs tend to vary based on:

• The size of your house
• The number of people using electricity in your home
• Climate conditions
• How you heat and cool it
• Other large electricity loads (EV charging, pool pump, hot tub, electric water heating, etc)
• Your utility rate plan (flat rates versus time-of-use 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.

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 2025, 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

On average, utility electricity rates have increased by 26% since 2021, substantially increasing the cost of electricity in 2025. 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.