Navigating the world of electricity bills can feel like deciphering a secret code. You see seemingly random numbers, charges, and “kWh.” Breaking down one of the most important parts of your bill, kWh, can help you learn more about what the average kWh usage looks like, both for homes and businesses, so you can benchmark your own and make cost-saving changes.
A kWh is a unit of energy, standing for kilowatt-hour. It’s commonly used to measure electricity usage.
1 kWh means using 1,000 watts of power for 1 hour.
Here’s how that works:
- Kilo: 1,000
- Watt: Unit of power
- Kilowatt (kW): 1,000 watts
- Hour (h): Unit of time
A kWh of electricity is the unit that your utility company uses to charge you. Every single electronic device you plug in, from your phone charger to your refrigerator, contributes to your total kWh usage.
According to the U.S. Energy Information Administration (EIA), the average monthly electricity consumption for a U.S. residential customer is typically around 893 kWh. This number translates to an average daily usage of approximately 29 to 30 kWh per day.
These averages vary greatly by factors like region. For instance, states with hotter climates like Louisiana or Florida tend to have higher average consumption due to intense air conditioning use.
Average daily usage also depends on the time of year, with summer demand for air conditioning (especially in larger homes) skyrocketing electricity consumption compared to spring and fall lulls. Winters, depending on location and whether heating is powered by gas rather than electricity, can mean lower average household kWh usage.
Just like residential consumption, commercial electricity usage varies wildly. A small boutique shop will have different needs than a sprawling manufacturing plant or a bustling office tower. However, understanding the averages can help businesses benchmark their operations and identify areas for potential savings.
For commercial customers in the U.S., the average monthly electricity consumption is substantially higher than residential. The EIA reports that the 2024 average monthly commercial electricity consumption was around 6,207 kWh.
Converting this to a daily average for a typical 30-day month means businesses use roughly 206 kWh per day. These averages, of course, vary greatly depending on industry, building size, and location.
Commercial buildings, like residential ones, experience significant seasonal fluctuations in electricity usage. Some of these swings, like summer and winter electricity demands, are the same for business owners as those of homeowners. Other swings, however, are unique to businesses.
Some industries will have unique seasonal demands. For instance, a commercial ice cream manufacturer will have much higher refrigeration and production energy usage in the summer. A ski resort, conversely, will see its highest energy demands in the winter for snow-making, lifts, and heating.
Holidays also impact businesses differently than homes. Many businesses experience altered schedules during holidays, which can temporarily reduce or shift their energy consumption. A retail store might have extended hours leading up to Christmas, increasing lighting and HVAC, while a corporate office might be largely shut down, leading to a significant drop.
Knowing the national or even regional averages is a great starting point, but the real power lies in understanding your own consumption.
Your electricity meter is the most accurate device for measuring your total kWh consumption, which you can then use to determine daily electricity usage.
How to Do It:
- Locate Your Meter: Most residential meters are on the side of your house, often near the utility connection point. Commercial meters are usually more prominent and might be within a dedicated utility area.
- Understand Meter Types:
- Analog (Dial) Meters: These meters have several small dials; each represents a digit. You read them from left to right. When the hand is between two numbers, always read the lower number. If a hand is directly on a number, look at the next dial to the right. If that dial has passed zero, then you read the number the current dial is on. If the next dial hasn’t passed zero, read the lower number.
- Digital Meters: These meters are much simpler. They display the kWh reading directly as a numerical value. Some might cycle through different readings (e.g., current demand, peak demand), so look for the clear kWh reading.
- Take an Initial Reading: Write down the exact date and time, along with the full kWh reading.
- Take a Subsequent Reading: After a specific period (e.g., 24 hours, 7 days), take another reading at the same time of day.
- Calculate the Difference: Subtract your initial reading from your subsequent reading. This difference is the total amount of energy consumed (expressed as kWh) during that period.
Many smart tools and apps make energy monitoring much easier.
- Smart Meters: Smart meters digitally record and transmit usage data to the utility company. Often, you can access this data through your utility’s online portal or a dedicated mobile app.
- Home Energy Monitors: Home energy monitors connect to your electrical panel and provide real-time energy use data.
- Smart Plugs: Smart plugs often include energy-monitoring features, making them great for tracking kWh usage for individual appliances.
If you don’t have a smart meter or monitor, you can still get a good estimate by understanding your appliances’ energy usage.
Steps:
- Find the Wattage: Look for a label on your appliance that lists its wattage (W). If it only lists amps (A) and volts (V), multiply them (A x V = W). If it lists a range, use the higher number for a conservative estimate.
- Estimate Daily Usage Time: How many hours a day is that appliance typically on or actively consuming power?
- Calculate kWh: Use the following formula: (Appliance Wattage / 1000) x Hours Used Per Day = Daily kWh
Household electricity usage relies heavily on the number of people in the home and the size of the space.
That said, some general benchmarks to consider for average daily kWh usage are:
- Single-Person Household (Small Apartment/Condo): 10-20 kWh per day
- Two-Person Household (Apartment/Small Home): 20-35 kWh per day
- Family of Three to Four (Average-Sized Home, 1,500-2,500 square feet): 30-50 kWh per day
- Large Household (5+ people, Large Home, 2,500+ square feet): 50-80 kWh per day
Benchmarking commercial usage is more complex due to the vast diversity of business types. However, here are some general guidelines and what to look for:
- Small Retail/Office (Under 1,000 square feet): 20-80 kWh per day
- Medium-Sized Office/Restaurant (1,000-5,000 square feet): 80-400 kWh per day
- Large Commercial Building/Light Industrial (5,000+ square feet): 400-several thousand kWh per day
- Turn off lights when not in use
- Rely on natural lighting during the day
- Unplug appliances when not in use
- Optimize thermostat settings
- Wash clothes in cold water
- Only run dishwashers when full
- Invest in ENERGY STAR-certified appliances, especially refrigerators, dishwashers, washing machines, and ovens
- Switch to more efficient lighting (LEDs)
- Upgrade to heat pump or tankless water heaters
- Use smart power strips
- Make HVAC system upgrades, like investing in a high-efficiency furnace
- Regularly maintain HVAC equipment
- Properly insulate and seal the home or business
- Replace old windows and doors
- Invest in solar panels
- Conduct an energy audit
For a single-person household, 25 kWh a day might be considered on the higher side of average, especially for an apartment or small home. For a two-person household, it’s fairly average to slightly below average. For a family of three or four, 25 kWh a day would be quite low and indicate excellent energy efficiency.
Ultimately, whether 25 kWh is a lot depends heavily on your household size, home size, geographic location (and associated heating/cooling needs), and the age and efficiency of your appliances.
A 2,000 sq ft house is a common size for a family of three or four. Based on national averages, a house of this size could typically use anywhere from 30 to 60 kWh per day.
Factors influencing this range include:
- Insulation and windows: A well-insulated, modern 2000 sq ft house will use less than an older, drafty one.
- Number of occupants: More people generally means more lights, hot water, and devices.
- Climate: A 2000 sq ft house in a cold northern state with electric heat could easily exceed 60 kWh/day in winter, while the same house in a mild climate might stay below 30 kWh/day year-round.
- Appliance efficiency: Older HVAC systems, water heaters, and refrigerators can significantly increase usage.
- Personal habits: Thermostat settings, length of showers, and use of energy-intensive electronics all play a role.
A 2-person household typically uses between 20 and 35 kWh per day.
In most homes, the biggest consumers of kWh are consistently:
- Heating and cooling (HVAC)
- Water heating
- Appliances (refrigerator, washer, dryer, etc.)
- Lighting
- Electronics (TVs, computers, gaming Consoles, etc.)
Yes, absolutely! Turning off lights, especially older incandescent or halogen light bulbs, definitely saves kWh. While an individual LED bulb consumes very little, every kWh saved adds up over time and across multiple fixtures.
If your kWh usage feels unusually high, it’s likely due to one or a combination of these common culprits:
- Inefficient HVAC system
- Poor insulation and air sealing
- Old or inefficient appliances
- Thermostat settings
- High occupancy
- Lifestyle
- Leaking hot water
- Changes in habits
The average kWh usage per day, for both U.S. households and businesses, varies greatly depending on factors like location, occupancy, building size, weather, and more. As energy prices are increasing across the country, it’s no wonder many homeowners and business owners alike are looking for ways to save on energy costs and use less energy overall.
The best way to start new energy habits is with small behavioral changes. When it’s time to replace an older appliance, for example, choose an energy-efficient appliance. Over time, these small actions accumulate into significant savings and a more sustainable lifestyle.