Wiktor Wise
Electricity prices in Ohio are determined by a combination of factors, including usage, supplier, and rate type. As of 2025, the average monthly electric bill for residential customers in Ohio is $175, calculated by multiplying the average monthly consumption of 1,131 kWh by the average electric rate of 15 ¢/kWh. This rate is 19% lower than the national average. Ohio residents have the option to choose their energy supplier, which can result in lower costs or access to additional services. Additionally, there are two main rate types offered by retail energy providers (REPs): fixed-rate plans, which offer a consistent price per kWh, and variable-rate plans, where rates fluctuate based on the wholesale price of electricity. Understanding these factors is essential for managing energy costs in Ohio.
| Characteristics | Values |
|---|---|
| Average monthly electric bill for residential customers | $175/month |
| Average monthly consumption | 1,131.00 kWh |
| Average electric rate | 15 ¢/kWh |
| Residential electricity rate range in the U.S. | 6 ¢/kWh - 71 ¢/kWh |
| Average residential electricity rate in Ohio | 15 ¢/kWh |
| National average rate | 19 ¢/kWh |
| AES Ohio's typical residential "Price to Compare" | $0.0945 per kWh |
| Date of AES Ohio's wholesale auction | April 29, 2025 |
| Date of increase for a typical AES Ohio SSO customer | June 1, 2025 |
| Increase for a typical AES Ohio SSO customer | $8.70 or 5.6% |
| Date range of AES Ohio's typical residential "Price to Compare" | June 1, 2025 - May 31, 2026 |
| Options for REP contracts | Fixed-rate plan, Variable rate plan |
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What You'll Learn
Average electric bill
The average electric bill in Ohio varies depending on a variety of factors. The average residential electricity rate in Ohio is 15 ¢/kWh, which is 19% lower than the national average of 19 ¢/kWh. Residential rates in the U.S. range from 6 ¢/kWh to 71 ¢/kWh depending on the region, the types of power plants providing electricity, and the time of day or year.
In Ohio, the average monthly electric bill for residential customers is $175, calculated by multiplying the average monthly consumption of 1,131 kWh by the average electric rate of 15 ¢/kWh.
Electric bills are designed to cover the costs of producing electricity, as well as the costs of running and maintaining the electrical grid. These costs are reflected in both fixed and variable charges. Fixed charges remain the same each month, while variable charges fluctuate based on electricity usage.
To reduce their electric bills, Ohio residents can consider installing solar panels or switching to a retail energy provider (REP) with fixed or variable rates. Additionally, local governments in some areas offer community aggregation programs that provide competitive rates.
Budget billing options are also available, where the bill amount is calculated based on historical usage, and there are programs based on household income and other eligibility requirements to assist with utility bill payments.
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Fixed vs. variable rates
Deregulation in 2001 opened up Ohio's energy market to competition, allowing consumers to choose their electricity suppliers. Energy suppliers in Ohio offer two main types of plans: fixed-rate and variable-rate.
Fixed-rate plans offer price stability by locking in your rate for the duration of the contract, which typically ranges from 6 to 36 months. This protects consumers from market fluctuations and helps them budget their bills better as the rate they pay remains the same every month. However, ending a fixed-rate contract early will likely result in an early termination fee (ETF).
Variable-rate plans, on the other hand, offer more flexibility but also come with volatile pricing. With a variable-rate plan, your electricity rate will fluctuate monthly based on the market price of energy. Your bills can increase during times of high energy demand and decrease when demand is low. Variable-rate plans do not require a contract, so you won't incur an ETF if you switch to another plan.
When deciding between a fixed or variable rate plan in Ohio, it is important to consider your energy usage and evaluate factors such as contract length, early termination fees, renewable sourcing, and provider reputation. You can use the "Price to Compare" from your local utility company as a benchmark when comparing offers from other suppliers.
Ohio businesses can also leverage the Energy Choice Program to optimize their energy costs through customized plans, potentially leading to significant savings and efficient resource allocation.
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Solar energy savings
Ohio has seen rising electricity rates, and solar panels can help lower utility bills and reduce your carbon footprint. The cost of solar panels in Ohio ranges between $13,640 and $44,330, but federal, state, and local solar incentives are available to reduce the overall installation price.
The federal Residential Clean Energy Credit is the most substantial solar incentive available in Ohio. Other ways to save on solar in the state include a property tax exemption, SRECs, the ECO-Link program, and net metering. The Residential Clean Energy Credit, formerly known as the federal investment tax credit (ITC), can reduce your solar panel system's cost by 30%. Your entire system qualifies for this incentive, including equipment, labor, permitting, and sales tax. The average cost for a 5 kW solar panel system is around $13,216 in Ohio. After factoring in the 30% credit, the cost comes down to $9,251.
Additionally, Ohio has an excellent net metering program, which can save you thousands on upfront costs and future energy expenses. During the 25-30 year lifespan of your solar panels, you could save thousands on electricity costs. The average Ohio solar shopper will save $3,965 on solar panels with rebates and incentives.
You can also save money by paying for your solar system with cash. With a 5 kW system, you can save about $65,440 over 25 years, which is the warranty term of most solar panels.
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Choosing a supplier
Ohio residents can choose their electricity supplier, and there are many options to choose from. The Public Utilities Commission of Ohio (PUCO) offers an Apples to Apples comparison tool that allows ratepayers to compare electricity suppliers' charges for certain periods, known as the "Price to Compare". This tool also shows whether the offer is for a fixed or variable rate, the billing term length, and any additional fees.
When choosing a supplier, it is recommended to have your most recent utility bill on hand, which can be used to compare your "Price to Compare" and determine if switching suppliers will save you money. You can also choose from plans that include green energy, incentives, or that support a charity.
Fixed-rate contracts offer a secure rate for the term of the contract, and in Ohio, this rate cannot be changed once the contract is signed. Variable rates, on the other hand, change monthly based on market conditions, typically after an initial introductory period.
Community aggregation is another option for Ohio residents. Local communities are permitted by law to join citizens and small business owners together to buy electricity as a group, typically for 2-3 years. If you are part of an opt-out aggregation, you may have been automatically switched to a CRES (Certified Retail Electric Supplier) without realising it. However, you can still switch away without penalty and choose your own electricity provider.
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Budget billing
Ohio residents can enroll in a budget billing plan at any time during the year by contacting their electric utility provider. Some companies require 12 months of usage history at a location before signing up for budget billing. Once enrolled, the utility provider will use the historical usage and the expected annual cost of electricity to calculate a monthly charge. This will be the amount paid each month until the account is reviewed.
Each electric utility company handles the review process differently, with periodic reviews throughout the year. These reviews ensure that the budget amount covers the actual utility costs, and a new budget amount may be set to make up for any shortage or credit. For example, AEP Ohio's budget billing plan is based on a 12-month average of past usage at a specific address.
Duke Energy offers two different budget billing plans: the Annual Plan and the Quarterly Plan. The Annual Plan allows customers to make the same payment for the first 11 months, with a mid-year review in the sixth month to determine if an adjustment is needed. If there is a difference of 30% or more, Duke Energy will recommend adjusting the monthly budget amount, which the customer must approve. In the 12th month, an adjustment is made to settle any under or overpayment between the previous year's payments and the actual cost of electricity used. The Quarterly Plan allows customers to pay monthly instalments and avoid the 12th-month adjustment of the Annual Plan. Duke Energy reviews actual usage every three months and automatically adjusts future payment amounts if usage varies by 10% or more.
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Frequently asked questions
The average residential electricity rate in Ohio is 15 ¢/kWh, which is 19% lower than the national average rate of 19 ¢/kWh.
The average monthly electric bill for residential customers in Ohio is $175/month, calculated by multiplying the average monthly consumption by the average electric rate: 1,131.00 kWh * 15 ¢/kWh.
There are two main ways to reduce your electric bill: by using less electricity or by reducing the cost of electricity, for example, by installing solar panels.
Yes, electric choice allows you to choose your energy supplier in Ohio. You can choose a supplier based on factors such as cost or additional services offered. The Public Utility Commission of Ohio (PUCO) offers the Energy Choice Ohio “Apples to Apples” website to help you compare different offers.
Yes, the state of Ohio offers programs based on household income and other eligibility requirements. AES Ohio also provides options such as pay agreements and emergency relief funding through the Gift of Power program to help customers with past due balances.
