How much does electricity cost in 2025?
The cost of electricity in the U.S. hovers around 19 cents per kWh, but it really depends on where you live.
Electricity prices are always changing, impacted by seasonal variations, market shifts, and policy changes. As of February 2025, the average cost of electricity in the U.S. is around 19 cents per kilowatt-hour (kWh).
If your rate seems way off average, don’t worry—electricity prices vary widely throughout the country. We’re breaking down electricity costs by state to help you better understand your expenses.
key takeaways
U.S. residents spend an average of $2,518 annually on electricity ($0.19 per kWh), based on data shared with EnergySage, though costs vary by state.
These costs add up over time. Going solar can help you save nearly $50,000 on average.
The average homeowner breaks even in just 7.1 years and continues producing free electricity for years.
Residential electricity costs an average of $0.19 per kWh in the U.S., but what you pay for your power depends on where you live. For example, New Englanders often pay up to 10 cents more per kWh of electricity compared to Midwesterners.
Cost of electricity by state
State | Cost of electricity | Average usage per month | Average monthly electricity bill |
---|---|---|---|
$0.15 | 1,646 kWh | $246.90 | |
$0.15 | 1,555 kWh | $233.25 | |
$0.35 | 831 kWh | $290.85 | |
$0.15 | 947 kWh | $142.05 | |
$0.31 | 1,052 kWh | $326.12 | |
$0.16 | 1,046 kWh | $167.36 | |
$0.16 | 1,126 kWh | $180.16 | |
$0.15 | 1,630 kWh | $244.50 | |
$0.15 | 1,593 kWh | $238.95 | |
$0.15 | 1,230 kWh | $184.50 | |
$0.16 | 1,247 kWh | $199.52 | |
$0.13 | 1,086 kWh | $141.18 | |
$0.14 | 1,226 kWh | $171.64 | |
$0.12 | 1,531 kWh | $183.72 | |
$0.13 | 1,619 kWh | $210.47 | |
$0.24 | 930 kWh | $223.20 | |
$0.17 | 1,359 kWh | $231.03 | |
$0.33 | 968 kWh | $319.44 | |
$0.19 | 1,021 kWh | $193.99 | |
$0.17 | 1,040 kWh | $176.80 | |
$0.14 | 1,459 kWh | $204.26 | |
$0.15 | 1,459 kWh | 218.85 kWh | |
$0.24 | 852 kWh | $204.48 | |
$0.20 | 1,161 kWh | $232.20 | |
$0.16 | 1,163 kWh | $186.08 | |
$0.25 | 1,084 kWh | $271.00 | |
$0.14 | 1,374 kWh | $192.36 | |
$0.15 | 1,279 kWh | $191.85 | |
$0.13 | 1,419 kWh | $184.47 | |
$0.17 | 927 kWh | $157.59 | |
$0.18 | 1,228 kWh | $221.04 | |
$0.27 | 819 kWh | $221.13 | |
$0.14 | 1,461 kWh | $204.54 | |
$0.12 | 1,501 kWh | $180.12 | |
$0.14 | 1,503 kWh | $210.42 | |
$0.14 | 1,387 kWh | $194.18 | |
$0.14 | 1,387 kWh | $194.18 | |
$0.13 | 1,197 kWh | $155.61 | |
$0.14 | 1,510 kWh | $211.40 | |
$0.17 | 1,070 kWh | $181.90 |
Electricity rates are based on EnergySage Marketplace data—not every state in the U.S. is represented.
Power plants come in all shapes, sizes, and sources; some are better for the environment than others. Fossil fuels still generate most of the grid’s electricity, but renewables like solar and wind are capturing more and more of the U.S. energy mix thanks to things like renewable portfolio standards (RPS).
Below are a few resources that can help you better understand where your electricity comes from, but you can also reach out to your utility company directly:
You likely use more electricity during certain seasons than others, especially if you live in a state with clearly defined seasons or frequent extreme weather. For example, heat waves often cause spikes in electricity prices because everyone is cranking up their air conditioning at the same time. Like any other product, energy prices usually increase when demand is high.
There are two main ways to save on electric bills: use less electricity or offset your costs.
Improve your home’s energy efficiency
Using less electricity is the simplest way to save on your electricity bills. You can make small habit changes to use less energy, like hanging your clothes to dry or only running the dishwasher when it’s filled to the brim. But if you live in a household with multiple people, that’s much easier said than done. A major way to save on energy is to upgrade to energy-efficient appliances.
Go solar (any way you can)
Going solar is one of the most effective ways to reduce or eliminate your electric bills. Installing rooftop solar panels will bring the greatest savings by allowing you to generate your own electricity. It can be a big expense, but the average homeowner pays off their system in 7.1 years and then can enjoy paying little to nothing for electricity for the rest of the lifetime of their panels (about 30 years).
If you can’t install rooftop solar or simply don’t want to, consider subscribing to a local community solar project. Community solar allows you to enjoy the financial and environmental benefits of solar (although, on a lesser scale than rooftop solar) without the big investment.
Interested in solar but aren’t sure which option is best for you? Talk with one of our free Energy Advisors when you get quotes through the EnergySage Marketplace.
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