2026 Electricity Rates by State

Electricity is a regular monthly expense for both residents and businesses. However, energy rates vary widely from state to state depending on supply and demand, climate, geography, and the available plans in each area.

Some states are high energy consumers, often related to long seasons of hot or cold weather, which drives up overall electricity use averages. The U.S. Energy Information Administration (EIA) publishes annual electricity rankings, including consumption and cost per kilowatt-hour (kWh).

When looking for a place to call "home," electricity costs can be a major consideration for families. How does Texas compare to other U.S. states? Do the energy-rich resources of the Lone Star State impact costs? What about its warm climate? Read on for answers to these questions to see how Texas ranks on electricity rates and usage.

Average Residential Electricity Rates by State

(cents per kWh for the latest month available)

The residential electricity rates listed below are shown in cents per kilowatt-hour (kWh), a measurement that indicates the amount of energy used, which is equal to consuming 1000 watts per hour. On average, U.S. residents consume around 899 kWh per month, which is then multiplied by the rate to determine the overall electricity cost.

In the table below, you can compare the average electricity rates by state to determine the monthly cost residents pay. As reflected in the numbers, higher rates per kWh often result in higher monthly costs.

Top 10 Residential Electricity Rates by State

(cents per kWh for the latest month available)

As indicated by the dark blue hues on the interactive map, the states with the highest residential electricity rates are mainly concentrated within the country's more isolated or highly populated areas. Often, infrastructure costs more per resident to power less-populated areas, and the denser areas have more demand for more infrastructure. The summer and winter months may see the average electricity rates of these states rise within certain portions of the country based on geographical location; however, major shifts within the top ten could be influenced by other factors. Results for other forms of energy used by residents, like natural gas and fuel costs, do not always correlate with electricity rates and therefore affect states differently.

Lowest 10 Residential Electricity Rates by State

(cents per kWh for the latest month available)

The ideal place for states (and electricity consumers!) is within the bottom rankings for cost, where the monthly rates typically remain below the national average. Aside from geography, other factors that play a role in a state's electricity costs include regulations, generation sources (fossil vs. renewable), and the variety of plans and incentives offered to consumers.

Variability of Electricity Rates by State

Over time, state electricity rates may be subject to changes that cause them to fluctuate within rankings. Some trends remain the same, even with these movements; the most remote or densely populated areas are often the costliest.

Other influences on cost include weather conditions, as areas with severe heat or cold are susceptible to energy-use spikes based on how residents try to counteract the climate. Often, that can mean tapping into a home's heating and cooling capabilities, which presents the greatest energy cost for homes nationwide. Statewide rate adjustments, which are particularly sensitive to frequent swings, can impact other chart averages.

How Texas Compares

According to the EIA data, Texas sits near the middle of the national rankings. While that placement may not seem remarkable, it's notable given Texas's size and high energy usage. The state's hot climate and large population drive up demand, yet residents still pay less than some neighboring Southern states like Alabama (15.88¢) and Florida (15.12¢) — and significantly less than the national leaders like California (32.58¢) and Hawaii (39.36¢).

Numerous factors influence energy costs, and knowing how your state compares is helpful when deciding where to put down roots. Payless Power, a Texas company created for Texans, offers affordable prepaid electricity plans across most of the state. Residential customers get reasonable rates and can save even more by controlling their energy consumption with our pay-as-you-go plans. Enter your zip code to find a plan for your household.

What 2026 Electricity Rates Mean for Your Wallet and Your State

Household and commercial electricity rates across the U.S. vary widely, but Texans have an advantage thanks to a deregulated market and access to affordable power options. While the average rate in Texas sits near the national midpoint, residents can still save more by using renewable energy sources or choosing an electricity provider that puts control back in their hands.

Payless Power helps Texans take charge of their energy bills with straightforward prepaid electricity plans; no credit checks, deposits, or long-term contracts. Whether you want to monitor daily usage or avoid billing surprises, Payless Power offers a simple and budget-friendly way to power your home.

Sign up today to discover how easy it is to save on electricity and enjoy reliable service across Texas.

Frequently Asked Questions

Electricity pricing can be confusing, especially when rates shift or vary between states. Here are answers to some common questions to help clarify how electricity costs work and what influences them.

Why do electricity rates vary by state?

Electricity rates vary due to factors like local supply and demand, available generation sources, state regulations, and even geography. For instance, states with higher infrastructure costs or limited access to energy resources often see higher rates.

How is electricity cost calculated?

Your electricity bill is based on the number of kilowatt-hours (kWh) you use multiplied by your state's current electricity rate. Since the average U.S. household uses about 899 kWh per month, even a small rate change can make a noticeable difference in your monthly costs.

Why are Texas electricity rates lower than some nearby states?

Texas benefits from a competitive energy market and abundant natural resources. Even with its high energy consumption and warm climate, Texans typically pay less than residents in neighboring states like Florida or Alabama.

What factors cause electricity prices to change?

Electricity rates fluctuate due to weather conditions, fuel costs, infrastructure needs, and policy updates. Extreme temperatures, like hot summers or cold winters, can also lead to higher demand and temporary price increases.

How can I lower my electricity bill in Texas?

You can reduce your bill by monitoring your usage, improving home insulation, and choosing a flexible plan that fits your lifestyle. Prepaid electricity plans, like those from Payless Power, make it easy to track and manage consumption in real-time.

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