Electricity Rates by State 2026: Average Cost per kWh in All 50 States

Last updated: March 14, 2026 · 11 min read · by 13.Energy

Electricity prices vary enormously across the United States. The difference between the cheapest and most expensive state is nearly 5x. Where you live, how your state generates power, and whether your market is regulated or deregulated all play major roles in what you pay per kilowatt-hour.

This guide covers average residential electricity rates for all 50 states in 2026, what is driving prices up or down, and practical ways to reduce your bill regardless of where you live.

10 Cheapest States for Electricity in 2026

The cheapest states share common traits: abundant domestic energy resources (hydro, natural gas, coal), regulated utility markets, and lower population density reducing infrastructure costs.

10 Most Expensive States for Electricity in 2026

New England dominates the expensive list due to constrained natural gas pipeline capacity, aging grid infrastructure, and aggressive renewable energy mandates that require upfront investment. Hawaii's isolation makes imported fuel extremely costly.

All 50 States: Electricity Rates 2026

What Drives Electricity Prices

Energy Source Mix

States powered by hydroelectric dams (Idaho, Washington) and abundant natural gas (Oklahoma, Louisiana) consistently have the lowest rates. States reliant on imported fuels (Hawaii, New England) pay the most. Renewable energy can lower long-term costs but requires upfront infrastructure investment that temporarily raises rates.

Regulated vs. Deregulated Markets

In regulated states, a single utility controls generation, transmission, and distribution. Prices are set by the public utility commission. In deregulated states (Texas, parts of the Northeast, Illinois, Ohio), you can choose your electricity supplier, which can mean savings if you shop around — or higher bills if you do not.

Infrastructure Age

States with aging grid infrastructure pass upgrade costs to ratepayers. New England states are spending billions on grid modernization, contributing to their high rates. States that invested in grid upgrades earlier (or have newer infrastructure) benefit from lower maintenance costs.

How to Lower Your Electricity Bill

1. Go solar. With the 30% federal tax credit and falling panel prices, solar pays for itself in 6-9 years. See our best solar panels 2026 guide.
2. Smart thermostat. Heating and cooling is 40-50% of your bill. A smart thermostat saves 10-15% on HVAC costs.
3. LED lighting. If you still have incandescent or CFL bulbs, switching to LED saves $100-200/year for an average home.
4. Shop your rate. If you are in a deregulated state, compare providers annually. Sites like EnergySage and Power to Choose (TX) make this easy.
5. Seal air leaks. Weatherstripping and caulking around doors and windows costs $50-100 in materials and can cut 10-20% off heating/cooling costs.
6. ENERGY STAR appliances. When replacing appliances, choose ENERGY STAR certified models. The savings add up over the appliance's lifetime.

Frequently Asked Questions

What state has the cheapest electricity in 2026?

Idaho has the cheapest electricity in 2026 at approximately 9.5 cents per kWh, followed by Utah (9.8 cents), Wyoming (10.1 cents), and Washington (10.3 cents). These states benefit from abundant hydroelectric and natural gas resources.

What state has the most expensive electricity in 2026?

Hawaii has the most expensive electricity in 2026 at approximately 43.2 cents per kWh due to its reliance on imported petroleum. On the mainland, Connecticut (29.8 cents) and Massachusetts (28.5 cents) are the most expensive.

What is the average electricity rate in the US in 2026?

The national average residential electricity rate in 2026 is approximately 17.4 cents per kWh, up from 16.6 cents in 2025. Rates have increased approximately 3.5% year-over-year driven by infrastructure upgrades and fuel costs.

How can I lower my electricity bill?

The most effective ways are: install solar panels (30% tax credit available), switch to a smart thermostat, upgrade to LED lighting, use ENERGY STAR appliances, seal air leaks, and compare utility providers if your state has a deregulated energy market.