What is the Average Electricity Bill by State? 2024 Update

Electricity is an essential component of modern life. 

It powers communication, entertainment, commerce, and travel. It fuels household essentials like lighting, air conditioning, and food storage.

But while electricity is a universal requirement of living in the Western world today, people in different states pay very different prices to consume it.

If you’re curious to see how the average electricity bill in your state ranks, look no further. Here, we’ll walk through the differences in electrical costs from state to state and ways to reduce costs so you can make better-informed decisions about your power.

Average Electricity Bills in All 50 U.S. States

The Bureau of Labor Statistics monitors the average electricity and gas costs for the entire United States. BLS reported that in January 2023, the average cost of electricity was $0.168 per kWh. However, knowing how that translates to your electricity bill is tricky. Luckily, the United States Energy Information Administration tracks and shares its findings about electricity costs in publicly-available, easy-to-understand reports. 

Average Electric Bill for Homes

Household energy bills include the costs of daily activities, from cooking and cleaning to entertainment and work. Understanding your state’s average electric bill for homes gives you the power to use electricity wisely without straining the household budget. The table below provides a detailed breakdown of home electricity costs by state.

Average Electric Bill for Businesses

Businesses require energy and a lot of it. Electricity powers everything from lights and computers in offices and retail stores to high-energy machines and equipment in manufacturing, construction, and more. If you own a business and want to cut overhead expenses, consider the average electric bill for businesses in your state. 

How Is the Average Electricity Bill Calculated?

To determine the average cost of electricity bills in a given state, you multiply the average monthly electricity used by all users in a demographic (residential or commercial) by the average price per kWh of electricity. 

Average amount of electricity per month X average cost per kWh = average cost of electricity bill

Energy costs can vary between providers and between demographics. For example, the commercial sector may have lower rates, but that is because utility providers know that businesses will use more electricity than residential users. 

However, energy market analysts use the same calculation for residential and commercial electricity. 

What Are Contributing Factors to a High Electricity Bill?

You can’t control how much electricity costs in your state. However, you can take steps to cut your monthly payment. Here are some primary factors contributing to a high electricity bill.

Energy-Guzzling Appliances

Household appliances can vary widely in energy ratings. If you have a high electricity bill, you might be running more high-energy consuming appliances or leaving them on for longer. A high-energy using appliance like an air conditioner that you leave on for eight hours a day will drive up your utility bill. 

It’s always wise to research energy efficiency and alternatives before purchasing. Also, energy use varies throughout the day. Look at your energy consumption and see if there are ways to reduce usage when you’re not at home or when the business is closed.

Poor Insulation

Have you ever noticed a draft floating through the floorboards or the side of a door or window? When a house is not adequately sealed and insulated, it takes way more energy to regulate its internal temperature. 

Drafty attic spaces and old windows are a huge culprit. Investing in weatherproof or energy-efficient windows is a significant first step to addressing this issue. 

Bad Energy Habits

Do you ever leave the lights on when you leave a room? What about that one ceiling fan that is always running? While these habits may seem small, they can add up to a high electricity bill.

If the heating or AC system is running, ensure you’ve shut all your windows, so you don’t lose any temperature-controlled air. Taking shorter showers and washing your clothes with cold water can also make a difference. 

Extreme Weather

Unfortunately, there are certain factors out of your control when it comes to electricity bills. If you experience a scorching summer, your air conditioning unit will be on overdrive. This extra use adds up and can significantly affect your monthly bill. 

However, you can still take steps to minimize the impact. Close the blinds on exceptionally bright days or run your AC only at off-peak times to get the best rates available. 

How Can you Lower Your Average Monthly Electricity Bill?

Here are some solutions to lower your average monthly electricity bill.

Minimize Vampire Energy

Turning an appliance off doesn’t mean it’s not using energy. As long as a device is plugged in, it consumes electricity. Think about how many appliances are plugged in right now in your home. That ‘vampire energy’ adds up! Try to unplug devices when you aren’t using them.

Switch to Clean, Renewable Solar Power 

One of the more impactful changes you can make to lower your monthly electricity bill is changing where you get your energy. That’s where solar power comes into the picture. 

When you install solar panels for your home or business, you can drastically lower your energy costs in the long run. EcoFlow DELTA Pro is an example of an efficient alternative for clean energy. Solar power helps reduce your electric bill and gives you energy autonomy to keep your lights on and life moving during large-scale power outages. 

Only Run Appliances When Full

Do you have half a load of laundry or a dishwasher with only a few lonely plates? Consider holding off on using those appliances until they’re full. This practice can minimize the amount of energy used and can also conserve water. 

Consider Household Upgrades

It is a big investment upfront to upgrade your appliances and spend on energy-efficient windows and insulation. However, you could save considerable amounts of money over time. If you need to, start small, such as by switching to LED light bulbs! Even incremental upgrades will make a difference. 

You can also upgrade the entire household by installing a Smart Home Ecosystem. With portable power stations to supply clean power plus an EcoFlow Smart Home Panel that lets you integrate your power station into your home electrical circuit, you can track household energy consumption and optimize your usage. 

Frequently Asked Questions

We’ve researched some common questions about state electricity bills, so you don’t have to.

Conclusion

As energy costs continue to rise, staying informed and making intelligent decisions that can lower your electricity bill is more critical than ever. EcoFlow offers a wide array of solar energy solutions that save you money and make your home more energy-resilient, all while helping the planet.