Otis Singleton
The cost of electricity is a significant concern for many people, with rates seemingly increasing annually. The average daily electricity cost depends on a variety of factors, including location, the energy market, the size of the home, the number of occupants, and the efficiency of appliances. Understanding these variables can help individuals manage their expenses and make informed decisions about their energy usage.
| Characteristics | Values |
|---|---|
| Average daily electricity cost depends on | Number of people living in the house, size of the house, energy efficiency of the house and appliances, lifestyle, and heating needs |
| Average electricity rate in the United States | 12.89¢ per kWh |
| Cheapest electricity rates in the United States | North Dakota (10.21¢/kWh for homes and 7.18¢/kWh for businesses) |
| Most expensive electricity rates in the United States | Hawaii (42.34¢/kWh for residential and 38.29¢/kWh for commercial customers) |
| Average electricity rate in the United States in 2025 | $0.17 per kWh |
| Average electricity usage per day in Great Britain | 7.4 kWh for electricity and 31.5 kWh for gas |
| Average British household usage per year | 2,700 kWh of electricity and 11,500 kWh of gas |
| Average British household usage per month | 242 kWh of electricity and 1,000 kWh of gas |
| Ways to reduce energy usage | Using energy-saving appliances, switching to a plan with a cheaper rate, using storage heaters, gas ovens, underfloor heating, and heat pumps |
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What You'll Learn
Energy-saving tips
The average daily electricity cost depends on several factors, including location, the size of your home, the number of occupants, and energy efficiency. For instance, the average electricity rate in the United States is 12.89 cents per kWh, with rates as low as 10.21 cents/kWh in North Dakota and as high as 42.34 cents/kWh in Hawaii.
In Great Britain, the average electricity usage is 7.4 kWh per day for a dual fuel customer, which equates to 242 kWh of electricity per month. The average British household has 2-3 people and consumes 2,700 kWh of electricity annually.
To manage these costs, here are some energy-saving tips to implement at home:
- Understand your energy usage: Conduct an energy assessment to identify areas where you can save energy. Use an online tool or calculator to estimate your home's energy consumption and track your progress over time.
- Adjust your thermostat: Set your thermostat to a comfortable temperature, ideally one that provides humidity control. A smaller difference between indoor and outdoor temperatures will lower your cooling bill. Additionally, consider installing a smart thermostat, which can automatically adjust settings for optimal performance and reduce your heating and cooling bill by more than 8%.
- Improve window insulation: Install window coverings to prevent heat gain during the day. This can be in the form of curtains, blinds, or window film.
- Optimize your water heater: Set your water heater to no more than 120 degrees Fahrenheit to prevent scalding and conserve energy.
- Maintain your air conditioner: Regularly vacuum your air intake vents to remove dust buildup, and ensure furniture doesn't block airflow through registers.
- Utilize daylight: Take advantage of natural daylight instead of artificial lighting when convenient, but avoid direct sunlight to prevent heat gain.
- Efficient dishwashing and laundry:
- Scrape dishes instead of rinsing them before loading the dishwasher. Run the dishwasher only with full loads and use the air-dry option if available.
- Wash laundry with cold water whenever possible, and aim for full loads or adjust the water level for partial loads.
- Reduce standby power: Use a power strip as a central "turn-off" point for electronic equipment to completely disconnect from the power source and eliminate standby power consumption.
- Seal air leaks: Add caulk or weatherstripping to seal air leaks around doors and windows, preventing warm air from leaking into or out of your home.
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Average electricity rates by state
The average daily electricity cost in the United States is influenced by various factors, including energy consumption, state regulations, and access to resources. The average residential electricity rate is around 16.44 to 17.45 cents per kilowatt-hour (kWh), with the average monthly bill being $140.56 based on a monthly consumption of 855 kWh. However, rates vary significantly across different states, and understanding these rates is crucial for consumers to manage their electricity bills and make informed choices.
North Dakota has the lowest electricity rates, with 10.21 cents/kWh for homes and 7.18 cents/kWh for businesses. On the other hand, Hawaii has the highest electricity rates, with 42.34 cents/kWh for residential and 38.29 cents/kWh for commercial customers. The Northeast region, including states like Connecticut, Massachusetts, and New York, tends to have higher rates due to high population density and a high cost of living. In contrast, central states often have lower rates and less demand.
Texas, a deregulated state, traditionally has some of the lowest rates in the country. Deregulation allows consumers to choose their electricity supplier and compare rates, potentially reducing their electric bills. Other deregulated states include Ohio, Pennsylvania, and Rhode Island, which experienced a 23.4% increase in residential electricity prices from April 2024 to April 2025.
Climate differences also impact electricity rates and usage. Homes in more moderate climates use less energy, while heating and cooling account for about half of a home's energy usage. States with harsher winters or warmer summers may see higher electricity rates due to increased demand for heating or cooling. Additionally, the increasing demand for renewable energy sources and advancements in technology will likely influence future electricity rates.
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How much electricity appliances use
The average daily electricity cost depends on a range of factors, including the size of your home, the number of people living there, your lifestyle, and the efficiency of your appliances. According to Ofgem, the average electricity usage per day in Great Britain is 7.4 kWh for electricity and 31.5 kWh for gas for dual-fuel customers. For a household using only electricity, the usage would be higher. In the United States, the average electricity rate is 12.89 cents per kWh, with rates varying from state to state.
Now, let's delve into the electricity usage of specific appliances.
Refrigerators and Freezers
Refrigeration and cooling appliances tend to use a lot of power. The energy consumption of a refrigerator depends on its size and efficiency. A larger refrigerator will generally consume more energy. For example, an average 350-370 litre fridge might cost around $110-$120 a year to run.
Washing Machines
A washing machine consumes about 12% of the energy on your monthly bill. The cost per load is about $2 to $3, and if you wash 2-3 loads per week, this can amount to around $4 to $7 per day.
Kettles
To calculate the cost of operating a kettle, you can use the formula for energy consumption (wattage x time used) ÷ 1000. So, for a kettle with a wattage of 1500 W used for one hour, the calculation would be (1500 W x 1) ÷ 1000 = 1.5 kWh. If the electricity rate is 11 cents per kWh, the annual cost to operate the kettle would be $60.23.
Laptops and Mobile Devices
Charging laptops and mobile devices generally have a minimal impact on your power bill. Charging a laptop for around three hours a day might cost as low as $0.05 per day. Charging an iPhone 14 from empty every day for a year would cost about $1, while a tablet like an iPad Air would cost up to $3.
It's important to note that the energy usage of appliances can vary based on factors such as quality, efficiency, age, condition, and wiring. When purchasing new appliances, it's worth considering more energy-efficient models, which can help reduce your overall electricity costs.
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Average energy bills in Great Britain
The average energy bill in Great Britain depends on a variety of factors, including the unit rate, standing charge, energy usage, number of people in the household, size of the home, energy efficiency of the home and appliances, lifestyle, and heating needs.
According to Ofgem, the average British household has 2-3 people and uses 2,700 kWh of electricity and 11,500 kWh of gas per year, which equates to 242 kWh of electricity and 1,000 kWh of gas per month for dual fuel customers. The average daily electricity usage is 7.4 kWh, and for gas, it is 31.5 kWh.
The unit rate refers to the cost per kilowatt-hour (kWh) of gas or electricity, which can be fixed or variable depending on the agreement with the energy supplier. The standing charge is a fixed daily cost that covers the expenses of supplying energy to your home, such as metering and maintenance. As of September 2024, the average unit price for electricity was 24.5 pence per kWh, with a daily standing charge of around 60 pence. These figures represent a decrease from the previous cap, where the unit rate was 29 pence per kWh and the daily standing charge was 53 pence.
Energy prices in Great Britain have been volatile, with the average electricity bill rising from £764 in 2021 to nearly £2,000 in 2022. The energy price cap, which limits the rate energy suppliers can charge per unit of gas and electricity, has also undergone adjustments. In April 2024, the average energy bill was predicted to rise to £1,849 per year for a typical household.
To manage energy costs, British households can consider smart meters, energy-saving hacks, and improvements in energy efficiency. Additionally, storage heaters and alternative cooking appliances can help optimize electricity usage.
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Additional charges outside of energy costs
The average daily electricity cost depends on various factors, such as geographical location, geological makeup, level of development, and technological advancement. The average electricity rate in the United States, for example, is 12.89 cents per kilowatt-hour (kWh). Hawaii has the highest rates for electricity at 42.34 cents/kWh for residential customers, while North Dakota has the lowest at 10.21 cents/kWh.
Transmission and Distribution Fees
Transmission and distribution fees, also known as utility delivery charges, make up a significant portion of an electricity bill, typically around 40% for residential customers. These fees cover the cost of maintaining the infrastructure that delivers power to your home, such as poles, wires, and line maintenance.
Capacity Cost
Capacity cost is a fee incurred by commercial customers to ensure that the electric utility has enough capacity to meet the total power demand of their customers. While residential customers may not have much control over this rate, they can help lower these costs by using major appliances and machinery during off-peak times.
Energy Efficiency Charges
Some electric companies include energy efficiency charges or surcharges on their bills to fund electric energy efficiency programs. These programs aim to promote the development of renewable energy sources and reduce the environmental impact of traditional energy generation.
Electric Vehicle Charge
This charge supports transportation electrification and helps electric companies recover the costs of their electric vehicle programs. It includes rebates for the installation of EV charging infrastructure and incentives for off-peak EV charging.
Taxes
In some countries, such as Denmark and Germany, high taxes on electricity production contribute significantly to the overall cost of electricity. These taxes can make up about half of the total electricity price and are implemented to encourage energy efficiency and fund government initiatives.
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Frequently asked questions
The average daily electricity cost depends on a variety of factors, including the region, the number of people in a household, the size of the household, and the energy efficiency of the household. The average electricity rate in the US is 12.89 cents per kWh, but this varies across states, with North Dakota having the lowest at 10.21 cents/kWh and Hawaii the highest at 42.34 cents/kWh.
To calculate your daily electricity cost, you can use the following formula: Daily kWh consumption x number of days used per year = annual energy consumption. Then, to find the annual cost, use this formula: Annual energy consumption x utility rate per kWh = annual cost.
Several factors influence electricity costs, including the unit rates, the efficiency of your heating system and insulation, your lifestyle, and your heating needs. The number of people in a household and the size of the household also play a role, as more people generally mean more electricity usage.
Reducing your energy usage is the most direct way to lower your daily electricity costs. You can use an energy-saving calculator to estimate your energy consumption and identify areas where you can cut back. Switching to a plan with a cheaper rate may also help reduce costs, but it's important to consider your usage and the plan's terms as well.
