Residents in State College, PA who request quotes on the EnergySage Marketplace spend an average of $177 monthly on electricity. That adds up to $2,124 per year. A different way to look at it is that a typical State College, PA resident uses 1,356 kWh of electricity per month and 16,272 kWh over the year.
(For what it’s worth: State College, PA residents shopping for solar on EnergySage may use more electricity than a typical household.)
The easiest way to compare electricity costs across regions is to look at the electricity rate. In the U.S., residential rates generally range from 11 ¢/kWh all the way up to 34 ¢/kWh.
As of February 2026, the cost of electricity in State College, PA is 13 ¢/kilowatt-hour (kWh)—roughly 34% lower than the national average cost. That number is based on real-world electric bills shared with EnergySage over the past 12 months. You can compare that number to the most recent average state electric price reported by the U.S. Energy Information Administration (EIA).
Three of the biggest utility companies in Pennsylvania providing transmission and distribution include Peco Electricity, PPL, Duquesne Light, West Penn Power, and Met-Ed. These are all known as Investor Owned Utilities (IOUs).
Small towns and cities in Pennsylvania get power from a Municipal Light Department or Cooperative, which are non-profits or owned by customers. Municipalities don’t always offer the same benefits as IOUs, but you might pay lower rates due to fewer regulations.
While you can't choose your utility company, since Pennsylvania has a deregulated energy market, you can choose your energy provider and plan. Energy companies compete to offer you the best service and rates, so choosing a plan tailored to your usage can often help you save on energy bills.
Pennsylvania also offers municipal electric aggregation programs, allowing you to join a group to purchase electricity in bulk, which often results in better rates. Many of these community programs prioritize renewable sources, making green energy plans more affordable and supporting the growth of sustainable energy in the state.
If you find a better plan, our partner WattBuy will contact your utility provider to switch you for free.
When you pay your electric bill, you’re not only covering the costs to produce that electricity, but also the costs of running and maintaining the electrical grid, as well as public benefit funds that promote things like renewable energy and energy efficiency.
Electric bill costs are rolled into fixed (monthly customer charges) and variable charges (¢/kWh that you use).
Fixed charges, like the flat fee for having a meter, generally remain the same monthly unless your utility makes a policy update.
Your variable charges will change every month and depend on your electricity rate and how much electricity you use.
Your electric bill's variable charges will include a supply (or generation) charge and a transmission and distribution (or delivery) charge. The supply charge covers the cost of electricity generation, while the transmission and distribution charges cover the cost of delivering it to your home.
Most energy customers in Pennsylvania have a fixed-rate plan, where you pay the same price for each kilowatt-hour (kWh) of electricity, regardless of the time of day or the amount used. With a fixed rate, your price remains the same each day, although it may change over time, depending on your contract.
Variable-rate plans are also available, but less common for residential customers. These plans have prices that fluctuate based on wholesale market rates, which can include time-of-use (TOU) or demand charges.
How clean is the electricity in Pennsylvania?
Data from the U.S. Energy Information Administration show significant room for renewable energy growth in Pennsylvania. As of August 2025, only about 3% of grid electricity is from renewable sources. The rest is powered by natural gas (59%), coal (8%), and nuclear energy (29%). That means going solar in Pennsylvania can greatly reduce your carbon footprint.
If installing solar panels on your rooftop is not an option, consider a renewable energy plan instead. Some electric providers have 100% renewable options. You’ll receive power to your home as you would with any other plan, but the company offsets your usage with renewable energy credits (RECs). And, if the renewable electric rate is lower than your current price, it’ll save you money. Overall, renewable plans are a great way to contribute to clean energy goals in your area.
As long as you have a suitable roof, one of the surest ways to save on energy is to go solar—ideally with a vetted contractor offering a competitive price.
Solar panels will reduce or even eliminate your electric bills in the short term and protect you against rising electricity costs in the long run, too. The amount you save depends on how much you spend on electricity now and how much of your electric bill you can offset with solar energy.
Solar panels are a big investment, but State College, PA homeowners who install them—and pay upfront—break even after an average of just 11.2 years. Then, the solar panels will continue to produce free electricity for years to come.
Does Pennsylvania offer net metering?
Solar panels usually produce more electricity than your home needs on sunny days. With net metering, you can sell the excess energy to your utility company and earn electric bill credits. When you need to use electricity from the grid, these credits help offset or pay for your entire electric bill.
Net metering is one of the best solar incentives in Pennsylvania. You get credits at the same rate you pay for electricity, which can cover up to 100% of your annual electricity use. If your system makes more electricity than you use in a year, you'll receive credits based on a special rate called the "price-to-compare." This rate includes the cost of generating and transmitting the electricity, but not the distribution costs.
How much can you save with solar?
The Keystone State has expensive energy rates, but also solid solar incentives. So, going solar in State College, PA often means big energy savings.
Just take a look at how much you'll spend on electricity over time based on your current bill. It’s easy to see how going solar can pay off quickly.
Electricity cost over time in Pennsylvania
Current monthly electric bill | 10-year electricity cost | 20-year electricity cost | 30-year electricity cost |
|---|---|---|---|
$50 | $6,900 | $16,000 | $29,000 |
$100 | $14,000 | $33,000 | $58,000 |
$150 | $21,000 | $49,000 | $87,000 |
$200 | $28,000 | $65,000 | $120,000 |
$250 | $35,000 | $81,000 | $150,000 |
Assuming a 3% annual increase based on inflation and average annual electric rate increases in Pennsylvania.
Let's assume you pay $177 for electricity monthly (the State College, PA average) and that electricity prices increase by 3% annually. Let's also assume you buy your solar panel system upfront and that it costs you $35,000 before any available incentives.
In the first year with solar, you'll avoid spending $2,100 on electric bills. Over five years, you'll avoid $11,300; by 10 years, you'll have avoided $24,500. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $78,400 on electric bills in State College, PA.
The average payback period in State College, PA is 11.2 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $43,000 over 25 years with solar.
Your solar savings depend on you
How much your utility company charges for electricity is a big indicator of how much you'll save with solar. But your exact solar savings depend on your unique situation—including your energy usage, roof layout, system size, and how you pay for your system.
Here are some reasons your savings could be below average:
You don’t use much electricity, or your roof is small or has a less-than-ideal layout. You might have a relatively long payback period, so you'll save a little less over time.
You don't install enough solar panels to 100% offset your energy use. You’ll pay less up front but save less in the long run.
You finance your solar panel system with a loan or sign a lease or power purchase agreement (PPA) instead of paying up front. These types of arrangements can make a lot of sense for keeping your capital flexible and will allow you to start saving sooner. But they will cut into your long-term savings.
Choosing a high-quality solar installer is the key to getting a top-notch solar panel system that will help you save on electric bills.
We pre-screen all solar companies on EnergySage to ensure they get the job done right. Here are the highest-rated EnergySage installers in State College, PA:
Elite+ InstallerScreened & Verified4.8 /5.0362 Reviews
Elite InstallerScreened & Verified4.5 /5.0525 Reviews
Advanced InstallerScreened & Verified5.0 /5.022 Reviews
Advanced InstallerScreened & Verified5.0 /5.039 Reviews
Approved InstallerScreened & Verified4.7 /5.0624 Reviews
Helping customers make informed decisions since 2009.
