Electricity rates by state, ranked

Why the spread is so wide

A kilowatt-hour is an identical product everywhere, so a 3.4× price difference is worth explaining. Three forces do most of the work:

• What the power is made from. States that lean on hydro or cheap local gas pay less than states that import fuel. Island and remote grids, which cannot borrow cheap power from a neighbor when demand spikes, sit at the top of this table.
• What it costs to deliver. Most of a modern bill is not generation — it is poles, wires, substations and the maintenance of all of it. Long distances, difficult terrain, storm exposure and ageing infrastructure all land on the per-kWh price.
• How the state regulates. Regulated and deregulated markets set prices very differently, and state policy on efficiency programs, renewables and cost recovery is folded into rates as well.

Demand matters too: hot summers and cold winters push everyone onto the grid at the same time, and the cost of meeting that peak is shared across every bill.

Prices here are statewide residential averages. Your own rate depends on your utility and tariff — work out your true rate here.

Where prices are heading

Of the 51 states with rate history in this dataset, 45 have risen over the period charted, 5 have fallen and 1 stayed broadly flat. That skew is the point: electricity has been getting more expensive in most of the country, driven by grid replacement, fuel costs and demand that is growing again after years of being flat. It is also why a rate you dismissed as too low to justify solar five years ago may not be the rate you are paying in five more.

What your state pays for an exported kilowatt-hour

After the rate itself, the rule that most changes the economics of a home system is what your utility pays for power you send back. Across the 51 states and DC:

• 28 offer retail-rate net metering — an exported kilowatt-hour is worth the same as one you buy.
• 15 credit exports below retail, so self-consumption (and often a battery) matters far more.
• 8 offer little or no export credit, which means a system should be sized to what you use on site.

Export rules change often and vary by utility even within a state. We flag the regime rather than invent a sell rate — see methodology, and check DSIRE for current incentives where you live.

The expensive third

Where every kilowatt-hour you avoid buying — or generate yourself — is worth the most.

• Hawaii — 42¢/kWh. The highest power prices in the US mean very fast payback even without full export credit.
• California — 33¢/kWh. Very high power prices, but NEM 3.0 pays well below retail for exports — a battery changes the math.
• Massachusetts — 30.4¢/kWh. High prices plus SMART incentive payments make MA one of the best-payback states.
• Rhode Island — 29¢/kWh. High prices plus the Renewable Energy Growth program make payback attractive.
• Maine — 28.8¢/kWh. High prices plus retail net metering give surprisingly strong payback for a northern state.
• Connecticut — 28.7¢/kWh. Some of the highest power prices in the US offset modest sunshine.
• New York — 27.8¢/kWh. New York’s 25% state tax credit (capped at $5,000) still applies and matters more than ever now the federal credit has ended.
• Alaska — 26.8¢/kWh. High power prices help payback, but low winter sun drags annual production down.
• New Hampshire — 26.2¢/kWh. High prices help; net metering credits exports near retail for residential systems.
• Vermont — 23.6¢/kWh. Retail net metering plus an adder make payback solid for a northern state.
• New Jersey — 23.4¢/kWh. Full retail net metering plus SREC-II income make NJ a strong-payback state.
• District of Columbia — 22.8¢/kWh. Among the most valuable SREC markets in the country, which can sharply cut payback.
• Maryland — 20.8¢/kWh. Retail net metering, a state grant and SRECs do the heavy lifting now that the federal credit has ended.
• Michigan — 20.6¢/kWh. Distributed-generation tariff pays below retail for exports.
• Pennsylvania — 20.4¢/kWh. Full retail net metering plus an SREC market support reasonable payback.
• Wisconsin — 18.6¢/kWh. Retail net metering plus Focus on Energy rebates support payback.
• Illinois — 18.5¢/kWh. Illinois Shines SREC program plus net metering can meaningfully cut net cost.

The middle third

Close enough to the national average that your own usage matters more than your state does.

• Ohio — 18¢/kWh. Net metering plus a modest SREC market support payback.
• Delaware — 17.7¢/kWh. Retail net metering plus SREC income on some utilities.
• Indiana — 16.9¢/kWh. Statewide net metering has largely sunset; exports paid near wholesale on most utilities.
• Alabama — 16.4¢/kWh. No statewide net metering mandate; check your utility’s buyback rate before sizing a system.
• Colorado — 16.4¢/kWh. Strong sun plus retail net metering make Colorado one of the better-payback states.
• Minnesota — 16.2¢/kWh. Retail net metering plus some utility rebates support payback despite northern latitude.
• Virginia — 16.2¢/kWh. Retail net metering and a growing SREC market support payback.
• Texas — 15.9¢/kWh. No statewide net metering, but some retailers offer strong buyback plans — shop the plan.
• West Virginia — 15.7¢/kWh. Retail net metering; modest sun keeps production middling.
• South Carolina — 15.6¢/kWh. Good sun and retail net metering on the major utilities.
• Arizona — 15.5¢/kWh. Excellent sun and high output; export credits are below retail under most utilities now.
• Oregon — 15.5¢/kWh. Retail net metering and state/utility rebates offset cloudier skies.
• Florida — 15.4¢/kWh. Lots of sun and retail net metering; no state income tax credit but a sales-tax exemption.
• New Mexico — 15.2¢/kWh. The best sunshine in this dataset plus a state tax credit on top of the federal one.
• Georgia — 15¢/kWh. Net metering is capped/limited on the largest utility — confirm terms before sizing.
• Kansas — 15¢/kWh. Good sun; net-metering terms vary by utility.
• Mississippi — 14.8¢/kWh. Exports credited below retail, and with the federal credit gone since 2025 payback rests on self-consumption — check your utility’s terms.

The cheap third

Low bills are good news, but cheap power lengthens the payback on solar, batteries and electrification.

• North Carolina — 14.6¢/kWh. New time-of-use net-metering tariffs pay less than the old retail rate — model conservatively.
• South Dakota — 14.1¢/kWh. No statewide net-metering rule; buyback varies by utility.
• Wyoming — 14.1¢/kWh. Good sun but low rates and a capped net-metering program lengthen payback.
• Iowa — 14¢/kWh. Retail net metering supports good offset across the major utilities.
• Kentucky — 13.9¢/kWh. Lower power prices and post-2020 net-metering changes lengthen payback.
• Washington — 13.9¢/kWh. Cheap hydropower and cloudy skies make Washington one of the longest paybacks.
• Missouri — 13.8¢/kWh. Retail net metering plus some utility rebates help offset lower power prices.
• Montana — 13.8¢/kWh. Retail net metering helps, but low power prices plus the end of the federal credit make for a long payback here.
• Tennessee — 13.6¢/kWh. TVA territory offers limited export compensation; size to self-consumption.
• Nevada — 13.5¢/kWh. Excellent sun; current net metering pays roughly 75% of retail for exports.
• Oklahoma — 13.5¢/kWh. Good sun, but limited net metering and no federal credit since 2025 mean payback depends heavily on how much you use on-site.
• Arkansas — 13.3¢/kWh. Retail-rate net metering supports solid offset on most utilities.
• Utah — 13.3¢/kWh. Great sun, but low rates and reduced export credits stretch payback.
• Louisiana — 13¢/kWh. Low rates and limited net metering already meant slow payback — and with the federal credit gone since 2025, solar here leans entirely on your own usage and any utility incentive.
• Nebraska — 12.8¢/kWh. Good sun but among the lowest power prices, so payback is longer.
• North Dakota — 12.5¢/kWh. The lowest power prices in the US make payback long despite decent sun.
• Idaho — 12.4¢/kWh. Low power prices lengthen payback; net-metering rules are in flux.

Common questions

Why your rate is the number that matters

Your electricity price drives almost every home-energy decision. The more you pay per kilowatt-hour, the faster rooftop solar pays off, the cheaper an EV looks next to petrol, and the sooner a heat pump beats gas. It also decides how much your air conditioner really costs to run. Whatever your state, the cheapest kilowatt-hour is the one you don't buy — our guide to cutting your electricity bill ranks every fix by the dollars it saves.