Beatrice Lang
Electricity rates vary across the world, and even within individual countries, due to factors like infrastructure, geography, demand, and political levies. In the United States, for example, Hawaii has the highest average electricity rate of 41.1 cents per kilowatt-hour, while North Dakota enjoys the lowest rate of 11.08 cents per kilowatt-hour. These rates can fluctuate over time, with Hawaii's rates decreasing by 9.1% from 2024 to 2025. Aside from state-level variations, rates can also differ within utility service areas of the same state. For instance, Alabama has relatively low rates, yet residents experience high electricity bills due to the heat. Understanding these electricity rates is essential for consumers to manage their bills and make informed decisions about energy choices.
| Characteristics | Values |
|---|---|
| City with the cheapest electricity rates | North Dakota |
| Average electricity rate in North Dakota | 11.08 cents per kilowatt-hour (kWh) |
| Average electricity rate in the U.S. | 17.11 cents per kWh |
| City with the highest electricity rates | Hawaii |
| Average electricity rate in Hawaii | 41.11 cents per kWh |
| City with the lowest average monthly electricity bill | District of Columbia |
| Average electricity rate in District of Columbia | 12.17 cents per kWh |
| City with the tenth most expensive electricity rates | New Jersey |
| Average electricity rate in New Jersey | 14.01 cents per kWh |
| City with the lowest average electricity retail prices in New England | Maine |
| Average electricity rate in Maine | 12.66 cents per kWh |
| City with relatively low rates but expensive electricity bills | Alabama |
| Average electricity rate in Alabama | 9.30 cents per kWh |
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What You'll Learn
North Dakota: 11.1 cents per kWh
North Dakota currently has the cheapest residential electricity rates in the country, with an average rate of 11.1 cents per kilowatt-hour (kWh). This is significantly lower than the national average of 17.1 cents per kWh, making it an attractive location for those looking to save on their energy bills.
The low electricity rates in North Dakota can be attributed to several factors. Firstly, the state has a regulated electricity market, which means consumers often have a single supplier choice for their electricity needs. This lack of competition can keep prices low, as there is no pressure to offer competitive rates to attract customers. Additionally, North Dakota has a relatively low cost of living compared to other states, which can influence the overall energy rates.
The state's energy production mix also plays a role in its low electricity rates. North Dakota's electricity is primarily generated using coal, wind, and natural gas. With an abundance of coal and a growing focus on wind energy, the state has a diverse and relatively low-cost energy portfolio. However, it's important to note that North Dakota is the highest state in the country for CO2 emissions per capita, with the electricity sector contributing significantly to this pollution.
While North Dakota residents benefit from low electricity rates, the state faces challenges in adopting renewable energy sources. The installation of solar panels, for instance, comes with prohibitive costs, and the state offers no tax credits or rebates to encourage residential solar adoption. This lack of incentive can hinder the transition to cleaner energy sources and contribute to the state's high CO2 emissions.
Overall, North Dakota's low electricity rates of 11.1 cents per kWh make it an appealing location for those seeking affordable energy. However, the state's reliance on traditional energy sources and lack of incentives for renewable options may impact its ability to maintain low rates in the long term.
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Alabama: 9.30 cents per kWh
Electricity rates vary across the United States, with the average residential rate being 16.44 cents per kilowatt-hour (kWh). The average electricity rate across the country ranges from 7.18 cents per kWh to 42.34 cents per kWh. Alabama Power Company offers a Time Advantage Rate Plan to help customers save money during both the summer and winter months. During the summer, the price of electricity is 10.2554 cents per kWh between 7 p.m. and 1 p.m. (economy pricing periods). In contrast, the price increases to 30.2554 cents per kWh during weekday peak hours in the afternoons from 1 p.m. to 7 p.m. Similarly, during the winter, the economy pricing periods are before 5 a.m. and after 9 a.m., with electricity priced at 10.2554 cents per kWh. Weekday peak hours in the mornings between 5 a.m. and 9 a.m. are priced higher. This plan also includes all weekends throughout the year, which are priced at the economy rate of 10.2554 cents per kWh.
The Time Advantage Rate Plan also offers tips to help customers save money and energy during the summer months. These include setting the thermostat to 78-80 degrees, using ceiling fans to reduce air conditioner usage, and using timers on water heaters and pool pumps. Additionally, it is recommended to avoid using major appliances, such as the washing machine, dryer, and dishwasher, during peak hours. Alabama Power Company also offers a Smart Advantage programme, where customers can receive up to two free smart thermostats or a prepaid Mastercard upon enrollment.
While the electricity rate in Alabama is 9.30 cents per kWh, North Dakota has the lowest average electricity rate in the country, at 11.08 cents per kWh according to one source, and 11.1 cents per kWh according to another. However, these values may not be directly comparable, as the average residential U.S. electricity price is 17.1 cents per kWh, which is higher than the value for Alabama. This discrepancy could be due to differences in data sources or the specific time period and location within Alabama being referenced.
The variation in electricity rates across the United States is influenced by various factors, including the time of year, the cost of living, and the supply and demand of energy in a particular region. For example, in warmer states, summer rates tend to be higher due to the increased demand for cooling systems. Similarly, states with harsher winters may experience higher rates during colder months as consumers use more electricity for heating. The Northeast tends to have higher rates due to its high population density, high demand, and high cost of living. In contrast, central states have lower rates due to lower demand and a lower cost of living.
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Virginia: 9.25 cents per kWh
Electricity rates vary across the United States, with the average residential rate being 16.44 cents per kilowatt-hour (kWh). The national average is 17.1 cents per kWh, but this varies by state and region, influenced by factors like demand, supply, and energy sources. Hawaii has the highest average electricity rate of 41.1 cents per kWh, while North Dakota enjoys the lowest rate at 11.08 cents per kWh.
Virginia has relatively low electricity rates compared to the national average. The average residential electricity rate in Virginia is 14 cents per kWh, which equates to a monthly bill of approximately $187 for residential customers. This is calculated by multiplying the average monthly consumption of 1,325 kWh by the rate of 14 cents per kWh.
Over a year, the average electricity customer in Virginia uses 15,900 kWh of electricity, resulting in an annual expense of $2,298. Over 25 years, this amounts to an expected cost of $79,900. However, it's important to consider that electricity rates are subject to change over time, with an expected annual increase of 2.8%.
Virginia's electricity rates are influenced by various factors, including the state's demand for energy and the sources of energy generation. The state's transition to renewable energy sources, such as solar power, can also impact rates and provide opportunities for customers to reduce their electricity bills.
By investing in solar panel systems, Virginians can significantly reduce their monthly electric bills. Solar panels allow customers to generate their own electricity, reducing their reliance on the traditional electrical grid. With the average electricity customer in Virginia using 15,900 kWh annually, a 11.5 kW solar panel system can offset 100% of their electricity consumption.
The initial investment in solar panels can be substantial, averaging $33,000 for a 11.5 kW system. However, the long-term savings are significant. In the first year, customers can expect to save $2,200, and these savings accumulate over time, reaching $59,200 over 20 years.
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District of Columbia: 12.17 cents per kWh
Electricity rates vary across the United States, with the average residential electricity rate being 16.44 cents per kilowatt-hour (kWh). The District of Columbia has an average electricity rate of 16.77 cents per kWh, though one source lists the rate at 19.61 cents per kWh. However, it is important to note that rates can vary within the same state, and even within different utility areas in the same state.
Within the District of Columbia, Washington has a residential electricity plan priced at 11.09 cents per kWh, which is the best-priced plan currently available in the city. This is significantly lower than the state's average rate and the nationwide average electricity rate, which is priced at 12.06 cents per kWh.
The District of Columbia is one of the states with a deregulated electricity market, which means that customers can choose their electricity supplier. This allows residents to shop for the best rates and select a plan that works for their needs and budget. By comparing rates and suppliers, residents can secure the best electricity rate and potentially save a significant amount on their annual energy bills.
The time of year can also impact electricity rates. In warmer states, summer rates tend to be higher due to the increased demand for cooling. Conversely, in states with harsher winters, rates may be higher during the colder months as more electricity is used for heating. Additionally, the cost of electricity can be influenced by the time of day it is used, with higher rates during peak demand periods.
Overall, the District of Columbia's electricity rates are relatively low compared to other states, and residents can further optimize their energy costs by taking advantage of the deregulated market and comparing rates to find the best plan for their needs.
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Maryland: 12.66 cents per kWh
Electricity rates vary across the United States, with the average residential rate being 16.44 cents per kilowatt-hour (kWh). The average electricity rate across the country ranges from 7.18 cents per kWh to 42.34 cents per kWh. The average rate in the US is 17.11 cents per kWh, though this figure has also been given as 17.1 cents per kWh. The average national rate is also given as 16.15 cents.
North Dakota has the lowest average electricity rate of 11.08 cents per kWh, though another source states that North Dakota's average rate is 11.1 cents per kWh. Hawaii has the highest average electricity rate of 41.11 cents per kWh, though another source states that it is 41.1 cents per kWh.
Maryland has a deregulated energy market, which means customers can choose their electricity supplier. Maryland's average electricity rate is given as 14.31 cents per kWh, 17.91 cents per kWh, and 17.1 cents per kWh. The average monthly electric bill in Maryland is $127.62, though another source states that it is $166.14 per month. Maryland's electricity rates range from 6.91 cents to 22.29 cents per kWh, and one source states that a good electricity rate in the state falls between 17 cents and 19 cents per kWh.
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Frequently asked questions
North Dakota has the cheapest electricity rates in the US, with 10.21 cents per kWh for homes and 7.18 cents per kWh for businesses.
Energy supply rates vary from state to state and within utility service areas in the same state. They also fluctuate throughout the year, and are dependent on the time of year. For example, warmer states will have higher rates in the summer due to higher energy demand for cooling.
As of June 2025, Hawaii has the highest electricity rates, with 41.1 cents per kWh.
Middle Eastern and African countries tend to have the cheapest electricity prices worldwide. Iran, for example, has extremely cheap electricity prices, with an average household paying less than 0.1 US dollars per kilowatt-hour.
