Last updated: March 25, 2025

Electricity rates — the price per killowatt-hour (kWh) a home or business pays for electricity — is determined by numerous factors including (but not limited to) your location, type of building and customer class (residential, commercial, etc), and  energy consumption (ie, how much electricity you use).

U.S. Map of Average kWh Rates by State

Here’s a map of the U.S. with a breakdown of average electricity rates by state — the darker the state is shaded, the more expensive the electricity:

This map is updated monthly.  Please feel free to use/show this map on your site or publication but provide us with accreditation.

Average Electricity Rates

This table outlines the average residential and commercial electricity rates, as well as the total average rate, for each state.

Source: Internal/proprietary data gathered from utilities and energy providers across the United States

Cheapest Electricity Rates

Here are the states with the lowest electricity rates in the U.S.  

What determines energy rates?

There are numerous factors that determine electricity prices:

• Residential or Commercial:  Providers typically have a different set of energy rates for different “customer classes” — residential, commercial, and industrial customers.
• Usage: The amount of electricity you use each month (called kilowatt-hours or kWh) is a major factor in determining your electric bill.  The more energy you use, the more you’ll pay
• “Time of use” rates — not as well known, the price you pay can sometimes vary depending on the time of day.  “Peak rates” are typically charged during the hours when demand is highest (like a blizzard, or heat wave).  Off-peak electricity rates are typically charged during the hours when demand is lower, such as at night or during milder temperatures

In regulated markets, you’re stuck with the rate provided to you by your local utility.  In deregulated energy markets, you can shop around and attempt to find a better electric rate at another provider in your area.