How Much Does Electricity Cost?
So how much does electricity actually cost? It's priced per kilowatt-hour (kWh), but what shows up on your bill depends on where you live, who your utility is, and how your plan is structured. Here's a plain breakdown.
The national average, and why it's not your number
The U.S. average residential rate was 16.48 cents per kWh based on 2024 data, EIA's most recent finalized annual figure, according to the U.S. Energy Information Administration — Electric Sales, Revenue, and Average Price, Table 4. A more recent EIA update put the average closer to 18.34 cents per kWh as of June 2026 data, released August 26, 2026, according to the U.S. Energy Information Administration — Electricity Monthly Update, End-Use Sector. Neither of these is likely to be your actual rate — state averages alone can differ by more than double, and your specific utility, plan, and season shift it further. Use your own bill, not a national average, whenever you're calculating a real cost.
What's on a typical bill
- Supply / energy charge: what you're paying for the electricity itself, usually the largest line item and the one that varies most by plan or provider.
- Delivery / transmission and distribution charge: the cost of the physical grid, poles, wires, transformers, meters, that gets electricity to your home. In some markets this is bundled into one rate; in deregulated markets like Texas, it's billed separately by a regulated utility, distinct from your retail energy provider.
- Fixed monthly fees: a flat charge that applies regardless of usage, sometimes called a customer or service charge, covering the fixed cost of connecting your account to the grid.
- Taxes and other regulatory fees: vary by state and locality, and are usually a smaller portion of the total.
What actually affects your rate
Fuel mix matters: a region relying heavily on cheaper-to-generate power sources tends to have lower average rates than one more dependent on costlier generation. Infrastructure age and investment matter too, since maintaining and upgrading the grid is a real ongoing cost passed through to ratepayers. Market structure plays a role as well: in a deregulated market, multiple retail providers compete for your business on the energy charge, while delivery stays regulated and fixed regardless of which provider you choose. Weather and seasonal demand can also shift some plans' pricing, particularly time-of-use or variable-rate plans.
Tiered and time-of-use rates
Some utilities charge a flat rate no matter how much you use. Others use tiered pricing, where the rate per kWh increases once you cross a usage threshold in a billing period, or time-of-use pricing, where the rate depends on when you use electricity (often cheaper overnight, more expensive during afternoon/evening peak demand). Check your own rate plan's structure before assuming a single flat number applies to your whole bill.
The national average rate figures on this page come directly from the U.S. Energy Information Administration's published data, cited inline with their specific tables and reporting periods. This page explains general rate structure and doesn't calculate a personal estimate; use one of the linked calculators with your own rate and usage for that. Last checked September 2026.
Frequently asked questions
What is the average electricity rate in the U.S.?
The U.S. average residential electricity rate was 16.48 cents per kWh based on 2024 data, EIA's most recent finalized annual figure, according to the U.S. Energy Information Administration — Electric Sales, Revenue, and Average Price, Table 4. A more recent EIA update put the average at 18.34 cents per kWh as of June 2026 data, released August 26, 2026. Rates vary widely by state and utility, so your own bill is a better guide than any national figure.
Why do electricity rates vary so much by state?
Rates reflect a mix of local factors: the fuel mix used to generate power in that region, how much infrastructure (power plants, transmission lines) needs to be built and maintained, state and local regulation, weather-driven demand, and whether the state has a deregulated market with multiple competing providers or a single regulated utility.
What's the difference between a supply charge and a delivery charge?
The supply (or energy/generation) charge covers the actual electricity you used. The delivery (or transmission and distribution) charge covers the cost of the physical infrastructure, poles, wires, transformers, and metering, that gets electricity from the power plant to your home. Some utilities combine both into a single blended rate; others, like in deregulated markets such as Texas, list them separately.
How do I find my actual electricity rate?
Check a recent bill for a line item usually labeled "energy charge," "supply charge," or similar, shown in cents or dollars per kWh. If your bill only shows a total dollar amount without breaking out the rate, divide the total electric charges by the kWh used that period to get your effective blended rate.
Related tools
- Electricity Usage & Cost Calculator
- Electricity Bill Calculator
- kWh Cost Calculator — find your effective rate from a past bill
- How much electricity does the average home use?
This page provides general information based on published EIA data and does not calculate a personal rate or bill estimate. Use one of the linked calculators with your own rate and usage figures for that.