
The average cost of electricity in Boston is $0.28 per kilowatt-hour, with an average monthly utility bill of $162. Boston residents pay more for electricity each month than the average US consumer, despite lower consumption. There are various ways to reduce your electricity bill, such as using less electricity, installing solar panels, or choosing a renewable energy plan. Boston residents have dozens of electricity suppliers to choose from, and websites like ElectricityRates.com can help compare rates from leading Massachusetts providers. Additionally, the city of Boston offers programs like Mass Save to help residents improve energy efficiency and save on energy expenses.
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What You'll Learn

Boston's electricity costs
Boston residents have dozens of electricity suppliers to choose from, ranging from smaller local operations to leading national providers. The local electric utility company for Boston is Eversource, which was formerly known as NSTAR.
The average monthly utility bill for electricity in Boston is $162, with a kilowatt-hour (kWh) rate of $0.28. This is higher than the national average of $0.17 per kWh. The average monthly electric bill for residential customers is $280/month, which is calculated by multiplying the average monthly consumption of 913 kWh by the average electric rate of $0.31 per kWh. This adds up to a yearly cost of $3,360, which is 35% higher than the national average electric bill of $2,486.
There are several ways to reduce your electric bill in Boston. One way is to use less electricity by improving your home's insulation, lighting technology, and overall personal utility use. You can also reduce costs by installing solar panels, which cost just 5 cents per kilowatt-hour, or one-fifth the average cost of supplied power. Boston residents can also sign up for an electricity supply that costs 10.7 cents per kilowatt-hour, which is less than half the current average price. Community solar programs in Boston typically save residents 5-15% in electricity costs over the course of the year. The city-run program Boston Community Choice Electricity (BCCE) gives residents three options for electricity pricing and renewable energy.
If you're an Eversource or National Grid customer in Boston, you're eligible for the utility bill advocacy program, often called "arrearage management" through ABCD. Eversource also offers budget billing, a discount rate for income-eligible residents, and the New Start Program for residents who are behind on payments. National Grid offers budget billing and a payment plan option for those unable to pay their bill on time. The Massachusetts Good Neighbor Energy Fund is also available to any Massachusetts resident who is temporarily unable to meet a month's energy expense and is not eligible for state or federal energy assistance.
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Solar panels as an alternative
The average cost of electricity in Boston is $0.28 per kWh, with an average monthly utility bill of $162. This is a substantially higher rate than the national average of $0.17 per kWh. As a result, Boston residents pay more for electricity each month than the average U.S. consumer ($162 vs. $144).
Solar panels are an attractive alternative for Boston residents looking to reduce their energy costs. Here are some reasons why solar panels are a worthwhile investment:
Energy Cost Savings
The high electricity rates in Boston make solar panels a financially prudent option. Solar panels can significantly reduce your energy costs, with electricity from a home solar system typically costing around 8 cents per kWh, compared to the national average of 16 cents per kWh. Over 25 years, homeowners with solar panels can avoid an estimated $68,073–$92,499 in total utility costs. Additionally, the payback period for solar systems in Boston is relatively quick due to the high utility rates.
Backup Power and Grid Outages
Solar panels provide backup power during grid outages, which is particularly relevant for Boston, as Massachusetts ranked 5th for the most major power outage events and 13th for the most outage duration hours in 2020. When combined with battery storage, solar panels can power essential electrical systems like refrigeration, hot water, device charging, and Wi-Fi for several days.
Increased Home Value
Installing solar panels can increase the value of your home. According to a Zillow study, homes with solar panels sell for 4.1% more on average. In Massachusetts, you won't pay additional taxes on the value added by solar panels.
Incentives and Tax Credits
Boston and Massachusetts offer various incentives and tax credits for adopting solar energy. For example, the federal solar investment tax credit (ITC) credits 30% of the system's total cost toward your federal income taxes. Community solar programs in Boston typically save subscribers 5-15% in electricity costs annually.
Environmental Benefits
In addition to the financial benefits, solar panels offer environmental advantages by reducing your carbon footprint and helping to transition to cleaner energy sources.
While solar panels offer significant advantages, it's important to consider the upfront costs, which can vary based on factors such as system size, local labor costs, and roof complexity. Additionally, as a renter, you may face limitations on installing solar panels, but you can explore options like community solar projects and plug-in batteries to save on electricity costs.
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Average monthly utility bills
The average monthly utility bill in Boston, Massachusetts, varies depending on the source of energy and the time of year.
Electricity
According to EnergySage, the average monthly electric bill for residential customers in Boston is $280, with an average electric rate of 31 ¢/kWh. This is significantly higher than the national average. However, other sources, like solarreviews.com, put the average monthly utility bill at $162. This figure is supported by the U.S. Bureau of Labor Statistics, which reported that Boston households paid an average of 30.5 cents per kWh in December 2024.
The cost of electricity in Boston also depends on the size and insulation of your residence. For example, one source states that electricity costs for a 3200 sq. ft. new build range from $110-160 in cooler months to a high of $322 during the hottest month.
Gas
Gas costs in Boston also vary depending on the time of year. According to one source, gas costs are around $50 in the summer and up to $80 in the winter. Another source states that gas is consistently $15-20 for a stove/oven.
Water
Water costs in Boston are approximately $120 per quarter.
Rent
Rent in Boston is high, averaging $3,300 for a one-bedroom apartment in the city and $2,800-$3,100 in surrounding cities/towns.
It's important to note that there are ways to reduce your utility costs in Boston, such as participating in community solar projects or taking advantage of the various assistance programs and repayment plans offered by the city and utility companies.
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Ways to reduce utility costs
The average monthly utility bill in Boston is $162, which is higher than the national average. There are several ways to reduce utility costs. Here are some strategies:
Solar Power
Boston residents can take advantage of solar power to reduce their utility costs. Installing solar panels can be a great investment, with payback periods ranging from 3.5 to 7.6 years. Solar power costs just 5 cents per kilowatt-hour, compared to the average supplied power cost of 28 cents per kilowatt-hour in Boston.
If you're unable to install solar panels on your property, consider subscribing to a community solar farm. These programs typically save you 5-15% in electricity costs annually.
Reduce Energy Usage
Lowering your energy usage can also lead to significant savings on your utility bills. Some ways to reduce energy usage include:
- Adjusting your combi-boiler flow temperature
- Closing curtains and blinds to prevent heat loss
- Using a smart meter and smart thermostat to efficiently manage your energy usage
- Improving home insulation
- Using energy-saving modes on your devices and appliances
- Unplugging idle devices to prevent energy waste
- Using cold water for laundry and running full loads
- Using smaller appliances like slow cookers or toaster ovens instead of the oven
- Lowering the temperature on your water heater
Choose a Different Energy Supplier
Switching to a different energy supplier can also help lower your utility costs. It's important to regularly compare the market to ensure you're getting the best rates. However, be mindful that rates can change after six months or a year, so a contract that was previously affordable may become more expensive over time.
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Utility costs for renters
Boston is one of the more expensive places in the US for renters, with utility costs varying depending on the size of the property, the season, and the number of occupants.
The average monthly utility bill in Boston is $162, with an average cost of electricity of $0.28 per kWh. This is higher than the national average of $0.17 per kWh. The average monthly electric bill for residential customers is $280, with average monthly consumption at 913 kWh and an average electric rate of 31 ¢/kWh.
For a 3200 sq. ft. new-build apartment with AC, renters can expect to pay around $110-$160 per month in the cooler months, with costs rising to $322 during the hottest months. Gas costs can vary from $50 in the summer to $80 in the winter, while water costs are around $120 per quarter.
Renters can reduce their utility costs by installing insulation around windows and using less electricity. Signing up for a community solar project can also save subscribers between 5-15% on average on annual electricity costs.
Other utility costs for renters in Boston include cable TV, which costs around $65 per month, and a landline telephone, which can cost around $45 per month. The cost of public transportation is relatively affordable, with a monthly LinkPass providing unlimited access to Boston's subway lines and local buses for $90.
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Frequently asked questions
The average electricity cost in Boston is $280 per month, or $3,360 per year. This is 35% higher than the national average.
You can find your current rate on your electricity bill. If you use Eversource, you can use its Price to Compare.
You can reduce your electricity bill by using less electricity or by reducing the cost of your electricity. Installing solar panels is a great way to do this, and there are good incentives in Boston.
There are dozens of electricity suppliers in Boston, from local to national providers. You can compare prices on ElectricityRates.com by entering your ZIP code.
You can sign up for Boston Community Choice Electricity (BCCE), a City-run program that gives you three options for electricity pricing and renewable energy. You can also sign up for a community solar project, which saves subscribers 5-15% on average on annual electricity costs.











































