Electricity rates by state – the U.S. average is 13.26 cents per kilowatt hour
(state electric prices last updated June 26, 2019)
The Green Energy Solutions Rate Report shows you just how much energy costs can vary, using electricity prices from the U.S. Energy Information Administration (EIA) in all 50 states and the District of Columbia. Information on recent rates and fluctuations may help you understand your bill or decide to change your energy plan. Familiar with energy choice and want to sign up for a new plan? Enter your ZIP code above for rates you can secure today.
Where you live affects your electricity rate
April 2019 data, the latest available, show that the average U.S. price of 13.26 cents per kilowatt hour (kWh) rose 3 percent compared with a year ago. If you live in Louisiana, you paid the lowest average residential electricity rates of any state in the country – 9.62 cents per kWh. The next lowest rate is in Washington, where residents pay an average of 9.72 cents/kWh.
Below are the cheapest 10 states to live in based on residential electricity rates:
Also once again, Hawaii residents pay the highest electricity rates in the country. Below are the 10 most expensive states to live in based on residential electricity rates.
Looking deeper: The Green Energy Solutions Rate Report
The average home in the U.S. consumes 897 kilowatt hours (kWh) of electricity per month. Bills vary by state and region, as cost per kWh differs, evidenced by the Green Energy Solutions Rate Report. To estimate average monthly energy bills, multiply the average home’s electricity usage (897 kWh) by the cost per kWh in your state for that month. For example, the average cost per kWh in April for Kansas homes was 13.35 cents, which amounts to an average bill of about $119.75 (13.35 cents x 897 kWh) that month. Find your state on the interactive map below to see the latest average rate, its rank among other states and the percentage change from the previous month.
Residential electricity rates by state
|State||April 2019||April 2018||% change|
|District of Columbia||14.29||13.72||4.2|
The Green Energy Solutions Price Index
In 2019, we kicked off the Green Energy Solutions Price Index, a tool that combines the average electricity rate for a state with that state’s average monthly usage to produce a number that reflects average monthly bills for a state. The index is a ratio of that state’s average monthly bill compared with the average U.S. bill.
Other measures alone don’t accurately reflect monthly residential bills. Take the following case:
- Residents of Michigan paid an average of 15.45 cents per kilowatt hour (kWh) for their electricity in April, the 39th highest rate among states. However, they use an average of only 668 kWh per month, well below the U.S. average of 897. That leaves the state with a Choose Energy Price Index score of 89.2, the nation’s 14th-lowest score.
In other words, prices and bills don’t have a one-to-one correlation. Following is the July Green Energy Solutions Index:
|State||Green Energy Solutions Price Index||Index rank||State||Green Energy Solutions Price Index||Index rank|
Green Energy Solutions will track changes using the index on a regular basis.
What’s the best state for green energy? A Green Energy Solutions report
Commercial electricity rates through the year
In states with energy choice, the open market is not only for residents. Businesses also can take advantage of pricing and plans available through an energy supplier. In some states, only business customers have energy choice. Across the United States, the average business consumes 6,278 kWh of electricity per monthand received a bill of about $660 in March.
Electric rates for companies vary greatly by industry and function. Although homes come in all shapes and sizes, businesses have larger variations with diverse needs – from industrial buildings to mom-and-pop businesses. In April, for example, the average business in West Virginia paid 9.57 cents per kWh. With this number, we can deduce that on average companies in the state paid about $601 that month for electricity.
See the Green Energy Solutions Business Energy Index for a more in-depth look at commercial and industrial electricity rates.
Commercial electricity rates by state (cents/kWh)
|State||Averge rate: April 2019||Average rate: April 2018||% change||% of U.S. average||Rate rank|
|District of Columbia||12.45||12.65||-1.6||118.5||41|
Understand the energy market
Due to the volatility of the energy market, energy supply prices may fluctuate throughout the year. From April 2018 to April 2019, Maine experienced the biggest fluctuation in Residential Energy Rate electric prices, while Arkansas had the most consistent prices.
Fluctuations in electricity prices may seem random, but there are a few primary factors that determine how much you pay. These factors are:
- What time you use energy: Some energy suppliers offer plans with time-of-use discounts, such as free energy supply from 9 p.m. to 6 a.m.
- What month you use it: In warmer states, summer rates can be higher than winter rates due to higher energy demand for cooling.
- Where you live: Energy supply rates change from state to state and even among utility areas in the same state, regardless of whether the state has energy choice.
The future of energy
Energy comes from many sources, including coal, natural gas, nuclear and renewables. As nonrenewable sources such as coal diminish, the need for renewable energy sources grows. Some states satisfy the country’s growing renewable energy needs with their production of wind, solar and hydropower.
- Wind: Texas has the capacity to generate 18,500 megawatts hours of electricity through wind – and expects to add another 5,000 megawatts of wind generation capacity from facilities under construction.
- Solar: California’s solar farms and small-scale solar power systems have 14,000 megawatts of solar power generating capacity.
- Hydroelectric: Washington hydroelectric power produces two-thirds of its net electricity. The largest hydro plant is located at the Grand Coulee Dam in the northern part of the state.