Otis Singleton
Chicago's deregulated energy market allows consumers to choose their energy suppliers and plans. The average cost of electricity in Chicago is 14.73 cents per kilowatt-hour (kWh), but prices range from 6.14 cents to 32.85 cents per kWh. The price varies depending on the supplier and the plan. Residential rates are typically higher than commercial rates because businesses consume more energy and receive volume discounts. The average monthly electric bill for residential customers is $153, while businesses pay an average of $63,151 per month. Chicago residents can also opt for prepaid and no-deposit plans, renewable energy plans, or community solar programs to save on their electric bills.
| Characteristics | Values |
|---|---|
| Average electricity rate | 14.34 cents per kWh |
| Average monthly bill | $91.29 |
| Average monthly consumption | 636 kWh-1,055 kWh |
| Average yearly consumption | 12,660 kWh |
| Average yearly bill | $1,836 |
| Average business bill | $63,151 per month |
| Average business consumption | 5,982 kWh per month |
| Commercial rate | 10.56 cents per kWh |
| Residential rate range | 6.14 cents to 32.85 cents per kWh |
| Illinois average rate | 15.91 cents per kWh |
| National average rate | 17.6 cents per kWh |
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What You'll Learn
Solar panels
The average residential electricity rate in Chicago is 14.34 cents per kilowatt-hour (kWh), which is 9% lower than the average rate in Illinois and 27% lower than the national average. The average monthly electric bill for residential customers is $153, but this can vary depending on usage and the time of year. Commercial rates are typically cheaper than residential rates because businesses consume a lot of energy and receive volume discounts. The average business in Chicago pays 10.56 cents per kWh and has an average bill of $63,151 per month.
There are a few things to consider when thinking about installing solar panels in Chicago. Firstly, the cold weather can impact the efficiency and durability of the panels. Water melting and refreezing in gaps, as well as heavy snowfall or ice accumulation, can cause damage. Additionally, solar panels can cause ice dams on your roof, leading to structural or water damage. It is important to ensure that your roof structure can withstand the weight of the panels and potential snow loads.
To maximize the benefits of solar panels, you should consider the angle at which the sun hits your roof and try to align your highest energy usage times with the sunniest parts of the day. Net metering programs, like the one offered by ComEd in Chicago, can also help you save money. With net metering, you use solar energy first and only draw from the grid when needed, and any excess energy produced is fed back into the grid, giving you a credit on your bill.
If you are unable to pay for solar panels upfront, financing options are available. Some companies offer $0-down loans, allowing you to start saving immediately, even if your monthly payments are lower than your current electric bill. Community solar programs are another option, where you can subscribe to a solar farm and typically save 5-10% on your electricity costs annually.
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Average electricity rates
The average electricity rates in Chicago vary depending on the source of information and the time period. According to the U.S. Bureau of Labor Statistics, Chicago households paid an average of 16.1 cents per kilowatt-hour (kWh) of electricity in December 2024, which was unchanged from December 2023. This rate was lower than the nationwide average of 17.6 cents per kWh during the same period.
Other sources provide different estimates for the average electricity rates in Chicago. According to Choose Energy, the average cost of electricity in Chicago is 14.73 cents per kWh. However, this rate can vary depending on the electric supplier and energy plan chosen, ranging from 10.5 to 19.4 cents per kWh. Similarly, WattBuy reports that ComEd, the local utility company, offers electricity rates of around 10.03 cents per kWh based on estimated usage.
The electricity rates in Chicago also depend on the type of customer, with commercial rates typically being cheaper than residential rates due to volume discounts. According to PowerOutage.us, the average business in Chicago pays 10.56 cents per kWh for electricity, while the residential average is 14.34 cents per kWh. The average monthly electric bill for residential customers in Chicago is $153, while businesses have an average bill of $63,151 per month.
It is worth noting that Chicago has a deregulated energy market, which means residents have the flexibility to choose their energy suppliers and shop around for cheaper rates. This has resulted in a competitive market with varying rates and plans, including fixed-rate plans, variable-rate plans, prepaid plans, and green energy plans. Residents can compare electricity rates and plans to find the most suitable option for their needs and budget. Additionally, Chicago residents can consider installing solar panels or subscribing to community solar programs to reduce their electricity costs further.
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Commercial vs residential rates
The average electricity rate in Chicago is 14.34 cents per kilowatt-hour (kWh), though prices vary between 6.14 cents and 32.85 cents per kWh. The average monthly electric bill for residential customers is $153, though this varies depending on usage and the time of year. The average residential rate is around 14.34 cents per kWh, with a monthly bill averaging $91.29.
Commercial rates are typically cheaper than residential rates because businesses consume a lot of energy and are, therefore, able to obtain a volume discount on electricity. The average business in Chicago pays 10.56 cents per kWh for electricity and has an average bill of $63,151 per month. They also use 5,982 kWh per month, which is significantly higher than the residential average of 636 kWh.
There are 42 electricity providers in Chicago, and residents can shop around for a cheaper electricity bill. Chicago residents can choose between fixed-rate plans, variable-rate plans, no-deposit and prepaid plans, and green energy plans. Fixed-rate plans offer stable pricing throughout the contract term, which is typically between 12 and 36 months. Variable-rate plans adjust monthly based on market conditions. While there are no termination fees for variable-rate plans, rates can spike during high-demand periods. No-deposit and prepaid plans offer flexibility in payment structure, while green energy plans support renewable sources through RECs and may cost slightly more than traditional options.
The Illinois Commerce Commission (ICC) regulates utility service providers, including electricity, natural gas, telecommunications, and transportation, to ensure fair pricing. Regulated utilities often provide the most stable rates year-round.
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Fixed-rate vs variable-rate plans
Choosing the right energy plan depends on your specific needs, budget, and risk tolerance. Fixed-rate and variable-rate plans are two of the most popular options.
Fixed-rate plans
Fixed-rate plans offer stability and predictability. They provide customers with a rate that does not change for a specified period, typically 12-36 months. This rate is not subject to changes in supply and demand, inflation, etc. Fixed-rate plans are great for avoiding spikes in your electric utility bills during times of low supply, high demand, or times of crisis. However, if energy prices decrease, you may end up paying more than you would with a variable-rate plan. Fixed-rate plans often turn into variable-rate plans automatically when the contract term is up, so you may need to choose a new fixed-rate plan at the end of your contract if you still want a fixed rate.
Variable-rate plans
Variable-rate plans offer flexibility but come with price volatility and uncertainty. They are great if you are not ready to commit to a long-term plan. Variable-rate plans have a per-kWh rate that fluctuates based on local energy prices and can change every month, typically with no limits. Your provider is required to publish the next month's rate, so you will have notice of what you'll pay each month. Variable-rate plans do not have termination fees, but rates can spike during high-demand periods.
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Choosing an energy supplier
Chicago has a deregulated energy market, which means that residents can choose their energy supplier and plan. This gives consumers the flexibility to shop around for the best rates and plans to suit their needs.
When choosing an energy supplier, it is important to consider your priorities. For example, if you want to reduce your energy costs, you might opt for a supplier with a low rate per kilowatt-hour (kWh). The average residential rate in Chicago is around 14.34 cents per kWh, with a monthly bill averaging $91.29. However, rates vary from 6.14 cents to 32.85 cents per kWh, so it is worth comparing rates from multiple suppliers. You can also use online tools to filter by your specific criteria, such as provider, price, green energy, and no-deposit plans.
If you value green energy, you might want to choose a renewable energy provider. For example, Smart Energy offers renewable energy plans, while AEP Energy delivers renewable energy options and protects consumers from volatile market prices with fixed-rate pricing.
For those seeking long-term stability, a fixed-rate plan might be preferable. These plans typically last 12-36 months and offer stable pricing with predictable monthly bills. However, you will likely pay early termination fees if you cancel. Variable-rate plans, on the other hand, adjust monthly based on market conditions and do not incur termination fees, but rates can spike during high-demand periods.
It is also worth considering the length of the contract term, which can vary from 6 to 36 months, as well as other contract terms like cancellation policies and fees.
Finally, remember that your energy bill is influenced by your energy consumption. You can reduce your energy costs by lowering your energy usage, such as by using your HVAC system less frequently and performing regular maintenance on it.
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Frequently asked questions
The average electricity rate in Chicago is 14.34 cents per kilowatt-hour (kWh), though it can range from 6.14 cents to 32.85 cents per kWh.
Chicago has a deregulated energy market, meaning you can choose your energy supplier. You can compare electricity rates and plans online by entering your zip code. Fixed-rate plans offer stable pricing, while variable-rate plans offer more flexibility but are more volatile.
You can save money by reducing your electricity consumption or installing solar panels. Solar panel systems can reduce your monthly electric bills, and you can also receive credits by sending excess energy back to the grid.
The cheapest electricity company in Chicago may vary, but ComEd is a popular supplier with several different rates for residential customers. You can compare rates and plans online to find the best option for your needs.
Electricity pricing in Chicago depends on your supplier, energy plan, and cost of energy distribution. Many companies offer tiered plans, charging different rates based on energy consumption. The time of day you use energy can also impact your bill, with peak and off-peak rates varying by provider.
