The average U.S. residential electricity rate in 2026 is $0.16 per kWh, but individual states range from $0.09 to $0.34 per kWh. Here is the complete state-by-state breakdown:
| Rank | State | Rate ($/kWh) | Avg Monthly Bill | Primary Reason for High Rates |
|---|---|---|---|---|
| 1 | Hawaii | $0.34 | $298 | Imported oil dependence |
| 2 | California | $0.28 | $245 | Grid upgrades, wildfire costs |
| 3 | Massachusetts | $0.27 | $237 | Limited natural gas pipeline |
| 4 | Rhode Island | $0.26 | $228 | Imported energy dependence |
| 5 | Connecticut | $0.25 | $219 | Pipeline constraints |
| 6 | New Hampshire | $0.24 | $211 | Limited generation capacity |
| 7 | Alaska | $0.24 | $210 | Isolated grid systems |
| 8 | Vermont | $0.23 | $202 | Renewable energy investments |
| 9 | Maine | $0.22 | $193 | Natural gas dependence |
| 10 | New York | $0.22 | $193 | Infrastructure and taxes |
| Rank | State | Rate ($/kWh) | Avg Monthly Bill | Primary Reason for Low Rates |
|---|---|---|---|---|
| 1 | North Dakota | $0.09 | $79 | Coal + wind energy |
| 2 | Idaho | $0.10 | $88 | Abundant hydropower |
| 3 | Washington | $0.10 | $88 | Grand Coulee hydropower |
| 4 | Utah | $0.11 | $97 | Coal + natural gas |
| 5 | Oregon | $0.11 | $97 | Hydropower |
| 6 | Wyoming | $0.11 | $97 | Coal production |
| 7 | Nebraska | $0.11 | $97 | Public power, coal |
| 8 | Montana | $0.12 | $105 | Coal + hydro |
| 9 | Arkansas | $0.12 | $105 | Nuclear + natural gas |
| 10 | Louisiana | $0.12 | $105 | Natural gas abundance |
| State | Rate ($/kWh) | State | Rate ($/kWh) | State | Rate ($/kWh) |
|---|---|---|---|---|---|
| Alabama | $0.14 | Kentucky | $0.13 | North Dakota | $0.09 |
| Alaska | $0.24 | Louisiana | $0.12 | Ohio | $0.15 |
| Arizona | $0.15 | Maine | $0.22 | Oklahoma | $0.12 |
| Arkansas | $0.12 | Maryland | $0.16 | Oregon | $0.11 |
| California | $0.28 | Massachusetts | $0.27 | Pennsylvania | $0.18 |
| Colorado | $0.14 | Michigan | $0.17 | Rhode Island | $0.26 |
| Connecticut | $0.25 | Minnesota | $0.14 | South Carolina | $0.14 |
| Delaware | $0.15 | Mississippi | $0.13 | South Dakota | $0.12 |
| Florida | $0.14 | Missouri | $0.13 | Tennessee | $0.13 |
| Georgia | $0.14 | Montana | $0.12 | Texas | $0.13 |
| Hawaii | $0.34 | Nebraska | $0.11 | Utah | $0.11 |
| Idaho | $0.10 | Nevada | $0.14 | Vermont | $0.23 |
| Illinois | $0.15 | New Hampshire | $0.24 | Virginia | $0.14 |
| Indiana | $0.15 | New Jersey | $0.18 | Washington | $0.10 |
| Iowa | $0.14 | New Mexico | $0.14 | West Virginia | $0.13 |
| Kansas | $0.13 | New York | $0.22 | Wisconsin | $0.16 |
| North Carolina | $0.13 | Wyoming | $0.11 |
Electricity prices worldwide range from under $0.05/kWh in heavily subsidized markets to over $0.45/kWh in countries with high taxes and renewable energy surcharges. Here is how major countries compare:
| Country | Rate (USD/kWh) | Avg Monthly Bill | Energy Source Mix | Key Rate Driver |
|---|---|---|---|---|
| Denmark | $0.41 | $310 | Wind + biomass | Carbon taxes |
| Germany | $0.38 | $290 | Wind + solar + coal | Energiewende surcharge |
| Bermuda | $0.40 | $300 | Imported oil | Island isolation |
| Belgium | $0.32 | $240 | Nuclear + gas | High taxes |
| Ireland | $0.31 | $235 | Wind + gas | Gas dependence |
| Japan | $0.25 | $195 | Imported LNG + nuclear | Fuel imports |
| United Kingdom | $0.27 | $210 | Wind + gas + nuclear | Grid investment |
| Italy | $0.30 | $225 | Gas + solar + hydro | Gas dependence |
| France | $0.23 | $175 | Nuclear (70%) | Regulated nuclear rates |
| Spain | $0.24 | $180 | Solar + wind + gas | Market pricing |
| Australia | $0.26 | $200 | Coal + solar + wind | Grid distance |
| Canada | $0.13 | $105 | Hydro + nuclear | Abundant hydro |
| South Korea | $0.12 | $95 | Nuclear + coal | Government subsidies |
| Singapore | $0.22 | $170 | Imported gas | Fuel imports |
| China | $0.09 | $65 | Coal + hydro + nuclear | State-regulated pricing |
| India | $0.08 | $55 | Coal + solar | Subsidies, coal dominance |
| Russia | $0.07 | $50 | Gas + nuclear + hydro | Gas abundance |
| Saudi Arabia | $0.05 | $35 | Oil + solar | Heavy subsidies |
| UAE | $0.08 | $60 | Gas + solar | Subsidized solar |
| Mexico | $0.10 | $70 | Gas + oil + solar | Mixed sources |
| Brazil | $0.15 | $115 | Hydro (60%) + gas | Hydro dependence |
The cheapest electricity typically comes from hydropower, nuclear, and coal. States and countries with abundant hydropower (Washington, Idaho, Canada, Brazil) have significantly lower rates. Natural gas prices fluctuate with global markets, causing rate volatility in gas-dependent regions like New England.
Building and maintaining transmission and distribution infrastructure accounts for 40-50% of electricity rates. States with large geographic areas and dispersed populations (Alaska, Wyoming) face higher per-customer infrastructure costs, though this is offset in some areas by cheap generation.
European countries impose significant taxes on electricity. In Denmark, taxes account for 55% of the electricity price. Germany's renewable energy surcharge (EEG) adds $0.05-$0.07/kWh. In the U.S., state and local taxes add 5-15% to electricity bills depending on jurisdiction.
Regions that import fuel for electricity generation face higher and more volatile rates. Hawaii's reliance on imported oil makes its rates 3-4 times higher than the mainland average. Similarly, Japan's reliance on imported LNG after the Fukushima nuclear shutdown raised rates by 30-40%.
Some states have deregulated electricity markets where customers can choose their provider (Texas, Pennsylvania, Illinois). Competition can lower rates but also introduces price volatility. Regulated markets (Washington, Tennessee) tend to have more stable, often lower rates due to public power utilities and long-term generation contracts.
Beyond the per-kWh rate, the structure of your electricity plan affects your total cost:
| Rate Structure | How It Works | Best For | Potential Savings |
|---|---|---|---|
| Flat rate | Same price per kWh all day | Most customers | Baseline |
| Time-of-use (TOU) | Higher rates during peak hours (2-8 PM) | Flexible households | $20-$60/month |
| Tiered | Price increases as usage increases | Low-usage homes | $10-$30/month |
| Real-time pricing (RTP) | Hourly rates based on wholesale market | Very flexible users | $30-$100/month |
| Demand charges | Charges based on peak usage, not just total kWh | Commercial customers | Varies widely |
U.S. electricity rates have increased an average of 2.8% annually over the past decade. However, the rate of increase varies significantly by region:
| Region | 2016 Rate ($/kWh) | 2026 Rate ($/kWh) | 10-Year Change | Projected 2030 Rate |
|---|---|---|---|---|
| U.S. Average | $0.12 | $0.16 | +33% | $0.18 |
| New England | $0.19 | $0.26 | +37% | $0.29 |
| West Coast | $0.15 | $0.23 | +53% | $0.27 |
| South | $0.11 | $0.13 | +18% | $0.14 |
| Midwest | $0.12 | $0.14 | +17% | $0.15 |
| Mountain West | $0.11 | $0.13 | +18% | $0.14 |
Factors expected to drive future rate increases include grid modernization investments, renewable energy integration costs, electrification of transportation and heating, and natural gas price volatility. However, solar and wind cost declines may partially offset these increases in regions with favorable resources.
Knowing your local electricity rate helps you evaluate energy efficiency investments. For example, a heat pump water heater that saves 3,400 kWh per year is worth $544 annually in Hawaii ($0.16 × 3,400 = $544... actually $0.34 × 3,400 = $1,156) but only $306 in North Dakota ($0.09 × 3,400 = $306). Higher rates make efficiency upgrades more valuable and shorten payback periods.
Use our Energy Cost Estimator to calculate your specific savings based on your state's electricity rate and your household's consumption patterns. This personalized approach ensures you make informed decisions about energy investments.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute financial, legal, or tax advice. Always consult with a qualified professional advisor before making financial decisions. Rates, thresholds, and regulations change frequently — verify current figures with official government sources.