Average Electricity Bill in the U.S. by State
Our analysis at Home Energy Club shows that the average monthly electricity bill for a U.S. household is $137, adding up to $1,644 annually. However, because energy usage and electricity rates vary by state, the average energy cost by state ranges from as high as $213 in Hawaii to as low as $85 in Utah. Energy costs depend on factors such as kilowatt-hour (kWh) usage (home size and appliances), your electricity company and your specific plan.
When comparing costs to median household income, Mississippi residents spend the highest proportion (3.39%) on electricity, while Utah residents spend the lowest (1.09%).
In deregulated states like Texas, consumers can choose their electricity provider and plan type. Bills typically increase during summer due to the increased energy usage caused by air conditioning units. Monthly energy costs can also increase in winter for homes with electric heating. Meanwhile, the mild weather of spring and fall typically causes demand — and therefore prices — to drop.
This data comes from our analysis of U.S. Energy Information Administration (EIA) statistics on state-by-state electricity consumption and pricing.
Hawaii tops the nation with the highest electricity bills, averaging $213 per month. This comes as no surprise since the state relies heavily on petroleum for 67% of its electricity generation. Being isolated from the mainland creates two major challenges: Hawaii must import all its petroleum since it has no local production, and its isolated island grid prevents importing electricity from other states.
While Hawaii’s average monthly usage is lower than the U.S. average, its average rate per kWh is significantly higher, at 41.27 cents per kWh. That’s well over double the national average.
Connecticut has the second-most expensive monthly energy costs, with bills averaging $203. While Connecticut residents actually use less electricity than most Americans—716 kWh compared to the U.S. average of 899 kWh per month — they face steep average rates of 24.61 cents per kWh, which is 64% higher than the national average of 15.04 cents. New Hampshire and Florida follow, with average monthly bills of $169 and $168, respectively.
At the other end of the spectrum, Utah residents enjoy the lowest electricity bills in the country at $85 per month. This is achieved through a combination of below-average consumption of 783 kWh monthly and low rates of 10.84 cents per kWh. However, these savings come with environmental trade-offs, as Utah generates 46% of its electricity from coal and 34% from natural gas.
The next most affordable states are New Mexico at $91, Colorado at $95, and Wyoming at $99. While Colorado and Wyoming keep costs low through coal-powered generation, New Mexico stands out for its cleaner energy mix, generating 38% of its electricity from wind turbines.
How Affordable Is Electricity? A Look at Median Income vs. Light Bill Cost
Understanding affordability requires looking beyond monthly bills to examine how electricity costs impact household budgets across different regions and each state’s income levels.
Looking at electricity costs as a percentage of income reveals that Southern states face the heaviest burden. Louisiana leads, with electricity accounting for 3.45% of median household income, followed by Alabama at 3.37%, Mississippi at 3.35% and West Virginia at 3.14%. While their monthly bills range from $142 to $168 — close to the national average — median incomes below $60,000 make these costs more challenging for residents.
Utah has the most affordable electricity costs, at 1.14%, while in Washington, D.C., bills represent just 1.15% of median income. These are followed closely by Colorado at 1.32%, Washington at 1.36% and New Jersey at 1.42%. These areas combine relatively low monthly bills of $85 to $114 with higher median incomes exceeding $89,000 annually.
This creates a clear regional pattern: While Northeast and West Coast residents may see higher dollar amounts on their bills, their typically higher incomes make these costs more manageable. Meanwhile, Southern states face a double challenge of moderate electricity bills combined with lower median incomes, making power costs a more significant portion of household budgets.
Additionally, many southern states experience far warmer summer weather, causing increased energy usage. Even in states with lower rates per kilowatt-hour, such as Texas, higher usage leads to higher costs.
How Electricity Prices Have Changed Over Time
Understanding the trajectory of electricity prices over the past decade helps put current energy costs in perspective. While energy prices typically fluctuate year to year, recent data reveals an unprecedented surge that has impacted household budgets across the nation.
Our analysis below shows how stable pricing from 2014 to 2020 gave way to sharp increases, driven by a combination of economic pressures and market changes that continue to shape today's energy landscape.
Electricity prices in the U.S. remained stable from 2014 to 2020, with only a modest 5% increase over that six-year period. However, the landscape changed dramatically between 2020 and 2023, when the average price per kilowatt-hour jumped by 21.5%.
Two key factors drove this significant price increase:
- Natural Gas Price Increases: natural gas, which generates 43.1% of U.S. electricity, saw substantial price increases in 2022 due to various geopolitical and economic pressures.
- Electricity Rate Inflation: While U.S. inflation hit a 40-year peak of 9.1% in June 2022, electricity services specifically experienced an even higher 12-month inflation rate of 13.7%.
Regional differences play a major role in electricity costs. Some states face rates exceeding 25 cents per kWh, while others enjoy rates below 12 cents. These variations often reflect infrastructure age, transmission costs, local regulations and population density.
The mix of energy sources available in each state significantly influences these price variations. For example, Texas maintains relatively affordable energy costs by diversifying its power generation across natural gas, nuclear, solar, wind and coal power sources.
Weather events and natural disasters have also impacted electricity prices in recent years. Extreme weather patterns cause grid stress and infrastructure damage, which leads to higher maintenance costs and, ultimately, higher rates for consumers.
Additionally, the ongoing transition to renewable energy sources, while beneficial for the environment, requires significant infrastructure investment that can temporarily impact consumer prices.
Tips on How To Save Money on Your Light Bill
Looking to reduce your monthly electricity costs? Here are seven proven strategies you can take to try and lower your energy bills, depending on your home's energy usage patterns and local market options.
- Consider Solar Panels: Solar panels can help your home consume less grid energy, potentially reducing your monthly energy costs. For instance, if your panels generate 400 kWh of your 1,000 kWh monthly usage, you'll only need to purchase 600 kWh from your utility. Many providers also offer solar buyback plans, paying you for excess generation. Solar panels also have a lifespan exceeding 25 years and typical payback periods under 10 years (or less than 6 years in high-electricity-cost states), meaning they pay for themselves over time.
- Upgrade Your AC Unit: Air conditioning accounts for 22% of typical U.S. home electricity use, according to the EIA, and that number may be even higher in warmer climates, such as Texas or Florida. Installing a modern ENERGY STAR-certified unit can dramatically reduce cooling costs while maintaining comfort.
- Compare Electricity Providers: In deregulated states like Texas, Ohio and Pennsylvania, switching to a lower-rate provider can yield significant savings. For example, reducing your rate from 20 cents to 14 cents per kWh on 1,000 kWh monthly usage could save you $60 each month.
- Improve Home Insulation: Proper insulation can reduce heating and cooling costs by up to 15%. Focus on sealing air leaks around windows, doors, and other openings, and ensure your attic and walls are adequately insulated to prevent temperature loss.
- Smart Temperature Management: The U.S. Department of Energy reports that adjusting your thermostat by 7–10 degrees for eight hours daily can cut heating and cooling costs by 10%. Installing a programmable thermostat can automate these savings without sacrificing comfort.
- Use Energy-Efficient Appliances: Replace old appliances with ENERGY STAR-certified models. These can reduce electricity consumption by 10–50% compared to standard models, particularly for major appliances like refrigerators, washers and dryers.
- Switch to LED Lighting: Quality LED bulbs with ENERGY STAR or DesignLights Consortium certification can reduce lighting costs by over 25% compared to fluorescent lamps and more than 80% compared to incandescent or halogen bulbs.
Check out our other tips for saving on your monthly energy bill.
Methodology
For this study, we analyzed the cost of residential electricity bills from the U.S. Energy Information Administration. We used the Electric Sales, Revenue and Average Price annual report last published in October 2024 with data from 2023. We also used the Electric Power Monthly report published in September 2024 with data from July 2024.
