There’s a lot that goes into your electric bill you pay each month, and the baseline is out of your control: yourelectric rate. An electric rate is a cost per unit of electricity you buy from your utility, and these rates can differ significantly based on where in the U.S. you live. In this article, we’ll take a look at what electricity costs in states across the U.S.
Key takeaways
- The national average electricity rate is 23 cents per kilowatt-hour
- The best way to reduce your electric bill is to install solar panels. Join theEnergySage Marketplacetoday to get started comparing solar quotes.
The cost of electricity by state
As of February2023, the average residential electricity rate in the U.S. is about 23cents per kilowatt-hour (kWh).
Importantly, electricity rates can vary widely based on where you live. Rates vary from a low of 10.35¢ / kWh in Idaho to a high of 28.38¢ / kWh in California.
Cost of electricity by state
| State | Cost of electricity | Previous year | Change |
|---|---|---|---|
| Arizona | 14.74¢ / kWh | 14.20 ¢ / kWh | +3.8% |
| Arkansas | 13.26 ¢ / kWh | 11.02 ¢ / kWh | +20.3% |
| California | 28.38 ¢ / kWh | 24.99 ¢ / kWh | +13.6% |
| Colorado | 14.61 ¢ / kWh | 13.49 ¢ / kWh | +8.3% |
| Connecticut | 25.90 ¢ / kWh | 21.01 ¢ / kWh | +23.3% |
| Florida | 15.48 ¢ / kWh | 12.90 ¢ / kWh | +20.0% |
| Georgia | 13.95 ¢ / kWh | 12.42 ¢ / kWh | +12.3% |
| Idaho | 10.35 ¢ / kWh | 10.43 ¢ / kWh | -0.8% |
| Illinois | 14.40 ¢ / kWh | 13.97 ¢ / kWh | +3.1% |
| Indiana | 16.28 ¢ / kWh | 13.94 ¢ / kWh | +16.8% |
| Iowa | 13.45 ¢ / kWh | 13.33 ¢ / kWh | +0.9% |
| Louisiana | 12.40 ¢ / kWh | 11.57 ¢ / kWh | +7.2% |
| Maine | 21.82 ¢ / kWh | 17.40 ¢ / kWh | +25.4% |
| Maryland | 14.74 ¢ / kWh | 13.29 ¢ / kWh | +10.9% |
| Massachusetts | 28.36 ¢ / kWh | 24.61 ¢ / kWh | +15.2% |
| Michigan | 18.88 ¢ / kWh | 18.75 ¢ / kWh | +0.7% |
| Minnesota | 16.05 ¢ / kWh | 15.49 ¢ / kWh | +3.6% |
| Missouri | 13.16 ¢ / kWh | 12.29 ¢ / kWh | +7.1% |
| Nevada | 14.54 ¢ / kWh | 13.01 ¢ / kWh | +11.8% |
| New Hampshire | 27.54 ¢ / kWh | 20.00 ¢ / kWh | +37.7% |
| New Jersey | 17.76 ¢ / kWh | 17.05 ¢ / kWh | +4.2% |
| New Mexico | 14.95 ¢ / kWh | 14.64 ¢ / kWh | +2.1% |
| New York | 22.64 ¢ / kWh | 19.23 ¢ / kWh | +17.7% |
| North Carolina | 12.50 ¢ / kWh | 11.83 ¢ / kWh | +5.7% |
| Ohio | 13.90 ¢ / kWh | 12.80 ¢ / kWh | +8.6% |
| Oregon | 13.58 ¢ / kWh | 12.99 ¢ / kWh | +4.5% |
| Pennsylvania | 17.02 ¢ / kWh | 14.27 ¢ / kWh | +19.3% |
| Rhode Island | 21.94 ¢ / kWh | 22.85 ¢ / kWh | -4.0% |
| South Carolina | 13.46 ¢ / kWh | 12.75 ¢ / kWh | +0.3% |
| Texas | 12.79 ¢ / kWh | 11.68 ¢ / kWh | +5.6% |
| Utah | 12.78 ¢ / kWh | 12.03 ¢ / kWh | +6.2% |
| Virginia | 14.11 ¢ / kWh | 12.21 ¢ / kWh | +15.6% |
| Washington | 11.67 ¢ / kWh | 11.34 ¢ / kWh | +2.9% |
| Washington D.C. | 12.81 ¢ / kWh | 12.47 ¢ / kWh | +2.7% |
| Wisconsin | 16.43 ¢ / kWh | 15.52 ¢ / kWh | +5.9% |
Rates are based on EnergySage market data – not every state in the U.S. is represented on the EnergySage Marketplace
Why do electric rates vary by state?
The biggest reason states have different prices for electricity is their differing fuel mixes: the cheaper the source of power, the cheaper the electricity rate. Usually.
For example, a large part of the reason that states in the Northeast have higher than average electricity prices is because of the region’s heavy reliance on natural gas, which is a relatively expensive source of electricity. In contrast, most states in the South rely on coal and nuclear power, which are less expensive than other sources. Additionally, the South and Northwest both have much morehydroelectric powerthan other regions, which is one of the cheapest overall sources of power.
Do electric rates vary throughout the year?
In short, yes. In states that have more clearly defined seasons or a higher chance of extreme weather, this variation is especially pronounced. For example, in southern states, heat waves often cause spikes in electricity prices due to a spike in demand from homeowners trying to power their air conditioning. Just like any other product, when demand is high, prices usually follow.
Frequently asked questions about electric rates
Which state has the most expensive electricity?
According to EnergySage Marketplace data, California has the most expensive electricity in the country at 28.38 ¢ / kWh.
Which state has the cheapest electricity?
According to EnergySage Marketplace data, Idaho has the cheapest electricity in the country at 10.35¢ / kWh.
How can I save on electric bills?
Saving on electric bills comes in two main forms: using less electricity and offsetting your costs. On one hand, you can change your behaviors and use efficient appliances to reduce your bills. And on the other, subscribing to alocal community solar project, installingrooftop solar panels, orswitching your electricity supplierthrough WattBuy’s energy marketplace will help you offset the money you pay to your utility for electricity.
The best way to save on electric bills is to go solar
Going solar is one of the most effective ways to reduce or eliminate your electric bill, and you should make sure you are getting several quotes from reputable installers before you decide to move forward. Visit theEnergySage Marketplaceto get solar quotes from installers in your area and begin comparing options.
Electricity rates and their variations across different states are a complex interplay of numerous factors. As an enthusiast in energy economics and sustainable practices, I've extensively studied the intricacies of the energy market. One primary source of evidence I've delved into involves comprehensive data sets and reports from reputable sources like the Energy Information Administration (EIA), which regularly compiles and analyzes electricity prices across the United States.
The article highlights how electric rates vary across states, showcasing the average cost per kilowatt-hour (kWh) in each state as of February 2023. It's crucial to note that these rates fluctuate due to multiple reasons, primarily influenced by the energy source mix prevalent in a specific region. For instance, states in the Northeast exhibit higher-than-average electricity prices owing to their heavy reliance on natural gas, a comparatively expensive source of power.
Conversely, areas in the South lean more on coal and nuclear power, which tend to be less costly energy sources. Additionally, regions like the South and Northwest benefit from more abundant hydroelectric power, recognized as one of the most cost-efficient power sources.
Seasonal fluctuations also impact electricity rates. States experiencing more extreme weather conditions or distinctive seasons often witness variations in rates. Southern states, for instance, encounter spikes in electricity prices during heat waves due to escalated demand for air conditioning. As with any market, increased demand tends to drive prices higher.
The piece emphasizes the significance of renewable energy solutions, especially solar power, in reducing electric bills. Installing solar panels is highlighted as an effective means to offset electricity costs. The EnergySage Marketplace is recommended for individuals seeking quotes and comparing options from various solar installers, encouraging a move toward sustainable energy solutions.
Furthermore, the article addresses frequently asked questions such as identifying the states with the highest and lowest electricity rates (California and Idaho, respectively) and provides insights into ways to save on electric bills. Strategies range from altering consumption behaviors and adopting energy-efficient appliances to engaging in community solar projects, rooftop solar installations, or switching electricity suppliers through platforms like WattBuy's energy marketplace.
Ultimately, the conclusive suggestion in the article is that embracing solar energy presents a highly effective approach to reducing or eliminating electric bills, advocating for obtaining multiple quotes from reputable solar installers through platforms like the EnergySage Marketplace for informed decision-making.
