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Cost of Electricity for US Homeowners in 2023

Updated: Aug 9, 2023


An electric station

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Understanding your electricity costs isn't just smart—it's essential. Why? Because every kilowatt-hour you consume... every switch you flick... it all adds up. And in 2023, with the average Joe spending around 12% more on electricity than last year, it's high time you learned about where your dollars are zapped.


But these days, it is hard to talk about electricity costs without mentioning the word “Solar”. Solar energy. Not just a buzzword, but a beacon of hope. Imagine slashing those bills, harnessing the sun, and joining the green revolution.


This article will examine the cost of electricity in each state, how it relates to your monthly electricity bill, and how solar energy how solar could help to lower the cost.

 

Key Highlights

  • In 2023, electricity costs varied widely, with a national average of 16.68 cents per kWh.

  • Hawaii's rates soared to 43.18 cents per kWh, influenced by an 80% reliance on imported petroleum.

  • North Dakota, harnessing 45% of its electricity from renewable sources, enjoyed the lowest rates at 10.24 cents per kWh.

  • Household electricity bills are shaped by both rates and consumption, with heating and cooling consuming 30-50% of power.

  • EV charging adds around 300 kWh monthly for average drivers covering 37 miles daily.

  • Solar energy, beyond being eco-friendly, offers substantial savings, with homeowners seeing ROI in just a few years.

 

Cost of Electricity per kWh by State 2023

The national average cost of electricity has surged to a whopping 16.68 cents per kWh this year. But here's where it gets interesting: this isn't a one-size-fits-all scenario. Oh no, it varies... and quite a bit at that. The average price ranges from 10.24 cents in North Dakota & Idaho to 43.18 cents in Hawaii.


How Much Does Electricity Cost in 2023?

Click or tap to see your state's average price per kWh of grid electricity




State with the Highest Electric Rates

Hawaii:

Hawaii might be a dream destination, but when it comes to electricity rates, it's more of a wake-up call. Clocking in at a staggering 43.18 cents per kWh, it's the reigning champ of high rates. But why's it so steep? Well, over 80% of their electricity generation relies on imported petroleum. That's a hefty reliance, and it comes with a price tag... one that's over 11 cents higher than its nearest competitor, Connecticut.


Top 10 states with the highest electricity rates:



Based on July 2023 data from the Energy Information Administration (EIA).


State with the Cheapest Electricity

North Dakota: Now, for some good news. North Dakota's breezing through with the lowest rates, averaging just 10.24 cents per kWh. What's their secret? It's all in the mix. With a cocktail of wind, hydro, and solar making up 45% of their electricity, they're harnessing nature like pros. And while they're leading the pack, there's a fierce battle brewing for the title of "most affordable rates."

Top 10 states with the lowest electricity rates:




How Do Utility Rates Affect Your Electricity Cost?

Have you ever thought about the premise behind why your electricity bill gives you a mini heart attack some months and just a slight jolt in others? It's not all about the kWh price tag... there's another player in this game: your consumption.


The Utility Rate Game

You see, the rate your utility slaps on each kWh is just one side of the coin. Flip it, and you've got your consumption habits staring right back at you. It's a dance between what they charge and how much you use. And trust me, it can get complicated.


For instance, let's take a detour down to Louisiana. They're basking in some of the nation's cheapest grid electricity. Sounds like a dream, right? But here's the catch: they also top the charts in residential electricity consumption per household. So, while they're paying pennies per kWh, those pennies... they add up. Fast.


What Is The Average Electricity Bill in 2023?

Now, let's talk numbers. Every state's got its own electric cocktail – a mix of rates and ravenous consumption habits. And this concoction? It brews up your average electric bill.


Comparing this year to the ghosts of electricity past, there's been a shift. Some states have seen their bills skyrocket, while others have managed to keep things in check. But one thing's for sure: understanding this balance is your ticket to a brighter (and cheaper) electric future.


What's Draining Your Wallet on That Electricity Bill?

Sometimes you stare at your electricity bill and wonder... where's all that juice going? Let's unravel this mystery.


The Big Three: Heating, Cooling, and... Your Ride?

Heating and cooling aren't the only culprits guzzling up your electricity. Add home EV charging to the mix, and you've got the trifecta. Here's the breakdown: heating and cooling alone hog between 30-50% of your household's electricity. And if you're cruising around, covering the national average of 37 miles a day in your EV, you're looking at an extra 300 kWh on your bill each month.


But here's the silver lining: while you can't skimp too much on heating (especially with Mother Nature's mood swings) and cooling, EV charging still beats the cost of gas. Hands down.


So, before you start donning sweaters in summer or ditching your EV, remember: it's not just about cutting down usage. It's about playing it smart. Sometimes, the trick isn't to use less... but to pay less per use. There is a simple way out of all of these though. Solar, it is.


If you are unhappy with your electricity costs, connect with a reputable solar expert to design a custom solar system and compare binding quotes from local installers.


Cutting Electricity Costs with Solar

Solar panels aren't just sleek slabs; they're tech marvels. In simple terms, they capture the sun's energy and transform it into electricity for your home. It's like harnessing a piece of the sun, right on your rooftop.


Breaking down the numbers, solar panel installation might seem like a hefty investment upfront. But here's the twist: the returns are dazzling. Homeowners are looking at an impressive ROI in just a few years. And with electricity prices soaring, solar's looking even shinier. Considering solar installation? Why wait? Contact our experts today for a free consultation!


FAQ

Will electricity prices go down in 2023 USA?

Predicting exact electricity prices is challenging, but trends in 2023 indicate fluctuations due to factors like fuel costs and infrastructure investments. A significant drop is not anticipated.

What is the average electric bill in the US 2023?

What state has the highest electric bill?






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