How much does electricity cost by state?

There’s a lot that goes into your electric bill you pay each month, and the baseline is out of your control: your electric 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.

The cost of electricity by state

As of February 2023, the average residential electricity rate in the U.S. is about 23 cents 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

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 more hydroelectric power than 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 a local community solar project, installing rooftop solar panels, or switching your electricity supplier through 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 the EnergySage Marketplace to get solar quotes from installers in your area and begin comparing options.