How Much Does Electricity Cost in the US? 2026 State-by-State Rates
The average US electricity rate is $0.168 per kWh in 2026, up 3.2% from 2025. However, rates vary enormously by state — from $0.10/kWh in Louisiana to $0.45/kWh in Hawaii. The average American household uses 886 kWh per month, resulting in an average monthly bill of about $147. Understanding your rate is the first step to reducing your electricity costs.
Electricity Rates by State — Cheapest to Most Expensive
The five cheapest states for electricity are Louisiana ($0.10/kWh), Idaho ($0.11/kWh), Utah ($0.11/kWh), Wyoming ($0.11/kWh), and Washington ($0.11/kWh). These states benefit from abundant hydroelectric power, natural gas, or low population density. The five most expensive are Hawaii ($0.45/kWh), Connecticut ($0.29/kWh), Rhode Island ($0.28/kWh), California ($0.28/kWh), and Massachusetts ($0.27/kWh). High costs in these states result from imported fuel, strict regulations, aging infrastructure, and high demand. Check your specific rate with our Electricity Cost Calculator.
What Determines Your Electricity Rate?
Your rate depends on several factors: Energy source mix — states with cheap hydro (Washington) or natural gas (Louisiana) have low rates. Regulation — deregulated states (Texas, Ohio) offer competitive rates but with more price volatility. Infrastructure costs — aging grids in the Northeast require expensive upgrades passed to ratepayers. Renewable mandates — states with aggressive clean energy goals may have higher rates short-term. Demand and population — dense urban areas have higher distribution costs.
Time-of-Use (TOU) Rates — Save 20-50%
Many utilities now offer time-of-use pricing with dramatically lower off-peak rates. Typical TOU structure: Off-peak (10pm-6am): $0.05-$0.10/kWh — run EV chargers, dishwashers, and laundry. Mid-peak: $0.15-$0.20/kWh. On-peak (2pm-7pm): $0.25-$0.50/kWh — minimize usage during these hours. By shifting 50% of usage to off-peak, you can save 20-30% on your bill. EV owners benefit enormously — charging overnight at $0.08/kWh vs the standard $0.16 cuts charging costs in half.
Deregulated vs Regulated States
In deregulated states (Texas, Pennsylvania, Ohio, New York, Illinois, and others), you can choose your electricity provider and potentially lock in lower rates. Compare plans on your state's official comparison website. In regulated states, your utility is your only option, but rates are set by the public utility commission and tend to be more stable. Fixed-rate plans in deregulated markets protect against price spikes. Variable-rate plans may offer lower rates but carry risk during extreme weather events.
| State | Rate ($/kWh) | Avg Bill/mo | Rate vs National |
|---|---|---|---|
| Hawaii | $0.45 | $188 | +168% |
| California | $0.28 | $145 | +67% |
| New York | $0.24 | $120 | +43% |
| US Average | $0.168 | $147 | Baseline |
| Texas | $0.14 | $149 | -17% |
| Florida | $0.14 | $151 | -17% |
| Idaho | $0.11 | $102 | -35% |
| Louisiana | $0.10 | $119 | -40% |
How to Reduce Your Electricity Bill
1. Switch to LED lighting — saves $100-200/year for a 30-bulb home (see our LED Savings Calculator). 2. Use TOU rates — shift heavy usage to nights and weekends. 3. Set thermostat wisely — 78°F summer, 68°F winter saves 10-15%. 4. Seal air leaks — weatherstripping and caulking saves 10-20% on HVAC. 5. Upgrade to Energy Star appliances — new fridge uses 50% less than 15-year-old model. 6. Consider solar — payback in 5-12 years, then free electricity for 15+ more years.
Disclaimer: For educational reference only. Consult a licensed professional.