Umair Gaines
Pennsylvania's electricity market has been deregulated for over 25 years, allowing residents and businesses to choose their energy plans and suppliers. While this freedom of choice benefits many customers, it can also be overwhelming. As of 2025, the average residential electric rate in Pennsylvania is 17.6 cents per kilowatt-hour (kWh), which is 8% higher than the national average. Variable-rate plans fluctuate with the market and can be risky, while fixed-rate plans offer stability and predictability. With changes to electric prices expected from December 1, 2023, consumers are encouraged to shop around for the best rates and plans to suit their needs.
| Characteristics | Values |
|---|---|
| Average residential electric rate | 17.6 cents per kilowatt-hour (kWh) |
| Average commercial energy rate | 11.12 cents per kWh |
| Lowest residential electricity rate | 7.90 cents |
| Average residential electricity rate | 12.80 cents |
| Lowest commercial electricity rate | 10.36 cents |
| Average commercial electricity rate | 13.56 cents |
| Date when energy utilities are adjusting their supply prices | December 1, 2023 |
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What You'll Learn
Variable-rate plans
While variable-rate plans offer flexibility, they are also considered riskier due to the fluctuating prices. The price you pay for electricity can increase if the energy demand is high, resulting in higher electric bills. Therefore, it is important to carefully consider your options and compare different plans and providers to make an informed decision.
The average residential electric rate in Pennsylvania is 17.6 cents per kilowatt-hour (kWh), which is 8% higher than the national average. This rate is used to calculate the average electric bill, which is approximately $139 per month for a typical residential customer consuming 791 kWh per month. However, it is important to note that rates may vary across different areas and providers, so it is always recommended to check the latest rates before making a decision.
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Prepaid and no-deposit plans
In Pennsylvania, most energy providers require a deposit if your credit score falls below their credit threshold. The deposit amount typically ranges from $200 to $500, depending on your credit score. However, to bypass this deposit, you can opt for a no-deposit electricity plan, such as a prepaid energy plan. This plan enables you to pay for your electricity in advance and replenish your balance as needed.
When selecting a prepaid electricity provider in Pennsylvania, it is advisable to choose one that employs a real-time smart meter device to track your electricity usage. This ensures that you are charged for your actual electricity consumption rather than an estimate. Unfortunately, many prepaid electric companies in Pennsylvania go out of business, which can lead to issues with overcharging if they use estimated usage. By opting for a company that uses real-time data, you can avoid potential overcharging and only pay for your precise electricity usage.
No-deposit electricity choices in Pennsylvania offer flexibility in terms of rate plans, prices, and deposits. You can explore no-deposit options from providers like Direct Energy, which empower you to bypass the deposit requirement. It is worth noting that the availability of no-deposit and prepaid plans may vary based on your location within Pennsylvania.
To find the most suitable prepaid or no-deposit plan for your needs, it is recommended to compare rates, prices, and plans offered by different electricity providers in your area. This can be done by visiting websites that allow you to input your ZIP code and compare the available options and their respective advantages and disadvantages.
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Renewable energy plans
Energy rates in Pennsylvania are higher than the national average, with the average residential electric rate at 17.6 cents per kilowatt-hour (kWh) compared to the national average of 16.26 cents per kWh. The commercial energy rate in Pennsylvania is lower than the national average, at 11.12 cents per kWh compared to the national average of 12.76 cents per kWh.
Pennsylvania has seen a push for renewable energy sources in recent years, with a 4,000% increase in electric vehicle registrations since 2013 and an 11-fold increase in EV charging ports, ranking 11th in the nation for this category. The state has also seen the closure of its largest coal-fired plant, and renewable energy sources generated 3% of the state's electricity in 2021, mostly from utility-scale wind power.
There are several options for renewable energy plans in Pennsylvania. Some electricity retailers offer plans powered by renewable energy sources, including wind and solar power. These plans may not be 100% green energy, but retailers can offset this by purchasing Renewable Energy Credits (RECs), which subsidize green energy companies and help energy companies comply with the AEPS Act.
The Regional Greenhouse Gas Initiative (RGGI) is another cooperative agreement between 12 states in the northeast, including Pennsylvania, to reduce greenhouse gas emissions from power plants. Companies can avoid buying allowances by using green energy instead.
Pennsylvania also has the potential for hydropower, with 26 wind farms currently making up about 1,500 megawatts of generating capacity, and the potential to add 600 MW of hydropower capacity. The state also has resources for biomass energy production, using organic waste to generate power.
For those interested in solar power, there are many resources available to help plan and install solar systems, including guides from the Clean Energy Group, the Pennsylvania Land Trust Association, the PA Solar Center, and the Smart Energy Consumer Collaborative (SECC). The Federal Trade Commission also provides information on what to know about installing solar, and the Clean Energy States Alliance (CESA) offers a video on rooftop solar financing.
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Fixed-rate plans
There are several fixed-rate plans available in Pennsylvania, such as the APG&E True Classic 6 and APG&E True Classic 12 with Monthly Fee. These plans offer competitive pricing and no early termination fees. However, it's important to note that utility delivery charges, taxes, and other fees may be charged by your utility and are usually not included in the fixed rate.
The best time to lock in a fixed-rate plan is during the "shoulder months," which are typically in mid-to-late fall and mid-spring. During these months, electricity demand is lower, and you are more likely to get a lower fixed rate. On the other hand, locking in a fixed-rate plan during the summer or winter months, when energy usage is typically higher, may result in a higher fixed rate.
It's important to compare different fixed-rate plans and providers to find the best deal for your needs. Websites like Choose Energy and PAPowerSwitch allow you to compare energy plans and rates in Pennsylvania by entering your ZIP code. By shopping around and locking in a fixed-rate plan at the right time, you can save money on your energy bills and avoid the uncertainty of variable rates.
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Energy plan contract length
A quarterly contract is a three-month electric agreement, while a fixed-term contract is a longer-term agreement with a set end date. Fixed-rate plans are offered by suppliers such as APG&E, with prices that stay the same for the length of the contract. A spot contract is a short-term agreement with a specific start and end date, and an ongoing contract has no set end date and continues until it is cancelled. Variable-rate plans are also available, where the electric price fluctuates based on the wholesale cost of electricity, and there is no contract allowing the customer to switch at any time.
Pennsylvania's crowded deregulated power industry means that consumers have access to a wide range of electricity service agreements, with some of the best electricity rates available in the US. The Electric Generation Supplier Contract Summary (EGSCS) is a useful resource for consumers to compare the different types of contracts and plans available. The price per kWh, which includes the electricity price, is a key factor in determining the overall cost of an energy plan. However, it is important to note that utility delivery charges, taxes, and other fees may be additional.
The average residential electric rate in Pennsylvania is 17.6 cents per kilowatt-hour (kWh), which is 8% higher than the national average. The latest average commercial rate is 11.12 cents per kWh, which is about 15% lower than the national average. With such a variety of energy plans available, it is important for consumers to understand their own energy needs and compare rates to ensure they get the best deal.
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Frequently asked questions
Yes, electric rates in Pennsylvania are going up. As of 2025, the average residential electric rate in Pennsylvania is 17.6 cents per kilowatt-hour (kWh), which is 8% higher than the national average rate of 16.26 cents per kWh. Statewide, five suppliers will increase their prices, while six will decrease them.
The Pennsylvania Public Utility Commission announced that many electric and natural gas companies would be adjusting their supply prices on December 1, 2023.
You can compare electric rates from top energy suppliers in PA on websites like PAPowerSwitch, Choose Energy, and EnergyBot. These websites allow you to view today's lowest electric rates and help you find the best plan for your home or business.
