Compare Electricity Rates and Average Bill Costs in Each State in 2025

Paying for electricity is a fundamental part of everyday life, but it seems to get more expensive every year. You're not imagining things — electricity rates have increased in 80% of states over the past year.

Whether you’re trying to manage your monthly budget or simply just curious about your utility bill, we’re here to break it all down for you. In this article, discover the average electricity rates in each state, average monthly bills, money-saving tips, and more. 

Electricity rates by state: How much is electricity per month?

In 2025, the average residential electric rate in the U.S. is about $0.17 per kilowatt hour (kWh). 

However, this amount varies greatly depending on the region you live in and the energy market. For example, Hawaii has the most expensive electricity rates, at over $0.45 per kWh — almost three times higher than the $0.17 national average.

Data collected from the U.S. Energy Information Administration (EIA), an official government agency, provides the average electric rate for residential customers in each of the 50 states, including Washington D.C. 

How much is the average electric bill in each state?

In 2025, the average electric bill in the country is about $144. But don't be surprised if your bill is much higher than this (or much lower)! Just like electric rates, electric bills can vary widely by location, thanks to energy prices, consumption habits, and the type of plan you choose.

The following table shows the average monthly electric bill in each state, not including fees:

Electricity bill breakdown: Understanding rate plans and common electric bill charges

You may think that you just have to pay for the electricity you use, and that’s it. However, getting energy from the electric grid is complicated and requires additional fees for utilities to maintain infrastructure properly and provide service to customers.  

Depending on your electric service company, you may have additional charges outside of your energy costs. The most common electric bill fees include:

• Supply and generation charges: These are for the cost of generating the electricity supplied to you, and they are calculated based on your monthly kWh usage.

• Delivery charges: These charges are the added cost of getting the electricity to you by traveling via the grid, power lines, and the power plant itself.

• Customer charge: The customer charge is a fixed monthly charge that covers the cost of necessary administrative services, like billing and meter readings. 

What factors can affect electric rates?

You might wonder why Utah's electric prices are less than half those in Hawaii. Electric rates typically consist of three main parts: distribution costs, generation costs, and transmission costs. 

Energy rates can be affected by several factors, such as fuel costs, weather conditions, policy changes, the local energy market, and power plant costs. 

Fuel costs

Fuel costs are one of the main factors determining the value of your electric rate. Prices for fuels, especially natural gas and petroleum, can increase during periods of higher energy demand or when there are supply issues. 

For example, when natural gas pipelines froze in Texas during severe winter storms, fuel costs skyrocketed, and so did electricity rates. This is also why electric rates in Alaska and Hawaii are so high, as fuel costs include transporting fuel to these states. 

The type of fuel source will also impact the cost. According to a report by the International Renewable Energy Agency, renewable energy sources like wind and solar power are much cheaper than fossil fuels. So, fuel costs may be lower if your energy is generated largely by renewables. 

Weather conditions

If your area is experiencing extreme temperatures, demand for heating and cooling systems will go up. Increased demand can increase fuel and electricity prices. As weather patterns become more extreme, utilities will likely charge higher prices during the seasons when you need to heat and cool your home the most. 

Weather can also impact specific energy sources and the electricity supply in a region. If an area that relies on hydropower generation experiences a drought, the amount of energy available might decrease, increasing prices.

It can work the other way, too. One reason electricity is often cheaper at night is that wind turbines tend to produce more power at night, leading to lower rates. 

Policy changes

The U.S. electrical grid is overseen by several federal and state public utility commissions, along with a few industry and non-profit groups. If any major policy changes are made to the structure, regulation, or power management of the grid, they can influence the prices that customers pay for electricity.

Your energy market

There are different energy markets in the U.S., depending on where you live. There are regulated and deregulated energy markets. Regulated energy markets tie you to the electric companies that service the area you live in. Deregulated markets, like Texas, allow you to shop around and compare rates for different energy providers, which can lead to lower bills if done correctly. 

Power plant and infrastructure costs

There are costs associated with financing, construction, maintenance, and operating power plants. If utility infrastructure is significantly upgraded, your rates will likely increase.

Rocky Mountain Power in Utah proposed increasing rates by almost 30%, citing transmission line upgrades as a factor! 

How can I save money on my electric bill?

It seems like everything keeps getting more and more expensive, and electricity prices are no exception. People are looking for ways to save when they can and reduce their high electric bills.

Some of these energy-saving tips include:

• Upgrading your home with energy-efficient appliances

• Unplugging electronics when possible

• Use nature to your advantage

• Perform a home energy audit

Here at SolarReviews, we advocate for switching to solar power and other renewable energy sources to see the biggest drop in electricity bills. Solar panels can save homeowners hundreds of dollars every month on energy bills, and you don’t have to worry about increasing electric rates. 

If you want to pay less to your energy company, consider getting quotes from local solar companies to help you get started on your solar journey!

Electricity rates: FAQs

Here are some frequently asked questions to provide additional information regarding electricity rates and energy plans.