As Americans continue to navigate rising living costs, one household expense stands out on monthly bills: electricity. But have you ever considered that the cost of powering your home could influence where you choose to live? Whether you’re planning a move across town or across the country, the difference in electricity costs can have a surprising impact on your overall expenses.
In our latest research, we uncover electricity prices across the U.S. Our analysis, based on data from the U.S. Energy Information Administration, examines residential electricity costs per kilowatt-hour by state from 2010 to 2023. By the end, you’ll have a clearer understanding of where electricity expenses hit the hardest — and where you might want to consider relocating for a more budget-friendly energy bill.
Key Takeaways
- Hawaii (33.89 cents), Connecticut (21.1), and Alaska (20.53) are the top 3 states with the highest average cost per kWh for residential electricity from 2010 to 2023.
- Massachusetts has seen the highest increase in residential electricity cost per kWh from 2010 to 2023, jumping 101.5%.
- Since 2010, May (13.38 cents) and September (13.38) have had the highest average residential electricity cost per kWh in the U.S.; January has had the lowest (12.45).
- Missouri, North Dakota, and Iowa have the highest variability in electricity costs throughout the year; Florida, Washington, and Texas have the least.
- In 2023, 28.2% of the energy produced in the U.S. came from renewable sources — that’s 5x more than in 2010.
Highs and Lows: Power Prices Across America
Whether moving to reduce home expenses or simply seeking a more affordable lifestyle, understanding which states have the highest and lowest energy costs can guide your decision. This section examines the states with the highest and lowest average residential electricity costs per kilowatt-hour (kWh) since 2010.
There was a wide disparity in electricity costs across the nation. Hawaii topped the list with the highest average cost — the rest of the top 10 most expensive states are below, each followed by their average cost per kWh:
- Hawaii (33.89 cents)
- Connecticut (21.1 cents)
- Alaska (20.53 cents)
- Massachusetts (20 cents)
- New Hampshire (19.38 cents)
- Rhode Island (19.36 cents)
- New York (19.02 cents)
- California (19 cents)
- Vermont (17.92 cents)
- Maine (17.23 cents)
In contrast, residents in Washington enjoyed the lowest average electricity costs, which could make the state more attractive to potential movers. Washington’s diverse climate and geography — including rivers, mountains, and sunny plains — may contribute to its low energy prices.
The 10 states with the lowest average energy costs were:
- Washington (9.37 cents)
- Idaho (9.65 cents)
- North Dakota (9.85 cents)
- Louisiana (9.88 cents)
- Arkansas (10.13 cents)
- Oklahoma, Utah (tie, 10.37 cents)
- Nebraska (10.47 cents)
- Kentucky (10.56 cents)
- Tennessee (10.64 cents)
- Wyoming (10.65 cents)
The data also reveals how electricity costs have changed over time. Massachusetts experienced the most dramatic increase, with prices rising by 101.5% since 2010, which could prompt residents to consider relocating to more affordable regions. New Jersey saw the smallest increase, with costs rising by just 7% during the same period, making it one of the more stable states in terms of energy pricing. For the most recently pusblished data on state electricity rates, you can view our electricity rates by state page and see the latest information published by the Energy Information Administration (EIA).
Seasonal Shifts: When Electricity Costs Peak and Plummet
Electricity costs don’t just vary by state — they also fluctuate throughout the year, influenced by factors like weather patterns and regional energy demand. For those considering a move, understanding how electricity prices peak and dip during different seasons can help you better plan your budget and anticipate potential cost increases in your new location.
Since 2010, May and September have consistently recorded the highest average residential electricity costs in the U.S., both at 13.38 cents per kilowatt-hour (kWh). These transitional months often bring unpredictable temperature swings, requiring more energy to heat or cool homes as temperatures shift quickly. In contrast, January has been the least expensive month, with an average cost of 12.45 cents per kWh, making it a more affordable time for electricity use in most states.
State-by-state analysis showed that Missouri, North Dakota, and Iowa experienced the most significant seasonal variability in electricity costs, which means residents may need to carefully budget for potential spikes during extreme weather months. On the other hand, states like Florida, Washington, and Texas showed the least variability, offering more predictable electricity costs year-round — a key consideration for movers seeking financial stability when it comes to energy expenses.
We also identified extremes in monthly electricity costs across the nation. Hawaii in April had the highest monthly cost at 34.77 cents per kWh, while North Dakota in January had the lowest at 8.55 cents per kWh. These wide fluctuations illustrate how moving to a different state can affect your monthly energy budget, depending not just on where you live but also on when you use the most power.
Renewable Energy’s Rise Across America
As the U.S. shifts toward cleaner energy sources, renewable energy has become a significant factor in the nation’s power production. For those considering a move, the adoption of renewable energy could influence both the cost of electricity and the long-term sustainability of their future home.
The year 2023 marked a significant milestone in the country’s energy landscape, with renewable sources accounting for 15.5% of all energy net-generated in the U.S. This figure represents a dramatic increase from 2010, with the percentage of energy net-generated from renewable sources growing more than three times over this period. Such rapid growth reflects the nation’s commitment to reducing carbon emissions and embracing sustainable energy solutions.
Certain states have emerged as leaders in the renewable energy revolution. Iowa leads the way, with roughly 60.4% of its net-generated energy coming from renewable sources, followed by South Dakota (54.1%) and Kansas (46.9%).
For potential movers, the level of renewable energy adoption in a state can be an important factor to consider when deciding where to relocate. States that rely more on renewable energy may offer more stable and potentially lower electricity costs over time, especially as the country continues to shift toward cleaner energy sources.
The State of U.S. Electricity Costs
From Hawaii’s premium prices and Washington’s budget-friendly bills to seasonal spikes and year-round stability, America’s energy costs are as diverse as the country itself. The surge in renewable energy adoption, particularly in states like Vermont and California, signals a shift toward more sustainable and potentially more affordable energy solutions in the long term.
Understanding these patterns can inform our financial decisions, from daily energy use to choosing where to live. For policymakers and industry leaders, this data highlights opportunities for innovation and improvement in our national energy infrastructure. As America continues to evolve its energy mix, the power to shape our electrical future lies in our hands.
Methodology
For this study, we leveraged data from the U.S. Energy Information Administration (EIA) to analyze the annual average residential electricity cost per kWh by state, the monthly residential electricity cost per kWh by state, and the percent of energy produced from renewable sources by state from 2010 to 2023.
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