Paying the energy bill is a big part of every American household’s monthly budget. In 2025, knowing what the average house energy cost in America matters more than ever, with rates and usage on the rise. Costs aren’t the same everywhere: location, local fuel sources, and weather conditions all play a role in how much people pay each month.
For most families, average monthly electricity bills now hit about $154, though this number swings from under $90 in places like Utah to well over $200 in higher-cost states like Hawaii. Understanding these numbers helps homeowners and renters alike plan smarter, spot ways to save, and stay ahead as rates shift.
Paying for energy keeps every household running. In recent years, many Americans have noticed a bump in energy costs. With national electricity prices rising, the monthly electricity bill is now a bigger chunk of the family budget.
The average electricity bill for residential customers in the USA was $136.84 in 2023.
Average American Home Energy Bills at a Glance
- National average electricity bill: $136.84/mo
- Highest average electricity bill: Hawaii, $213.23/mo
- Lowest average electricity bill: Utah, $83.97/mo
- Middling residential electricity bill: Mid-Atlantic states, $128.74/mo; New England, $169.80/mo; New York, $125.80; Texas, $165.82/mo; California, $144.81/mo
Energy prices vary significantly based on factors like home size, region, energy consumption, the type of contract someone has with their local utility company and the type of energy used.
Large homes almost always means bigger energy bills. More square footage means more rooms to heat, cool, and light, not to mention more space for electricity-dependent appliances and electronics.
Weather conditions play a big part in energy costs. Colder states rely on heating systems for many months, for instance. Meanwhile, southern states may run air conditioning most of the year. Both heating and cooling systems use plenty of energy, but the exact cost depends on equipment and local utility rates. Further, since heat waves and cold snaps are getting more common, regional weather can swing monthly bills quite a bit.
Energy use makes a massive difference in utility bills. Simple lifestyle changes can reduce the amount of electricity or other energy a household uses, though, which can cut down on energy costs.
Energy-savings habits include:
- Turning off lights when not in the room
- Using energy-efficient appliances
- Installing smart thermostats to better regulate energy usage
Location determines homeowners’ and renters’ choices for energy providers and pricing plans.
In some states, a single utility provides energy, with prices set by that utility, which is often reviewed by a state board (regulated market). In others, people can choose their supplier (deregulated market). Deregulated markets can mean better rates or special plans, including fixed-rate plans and variable-rate plans.
Fixed-rate plans mean paying the same price per kWh regardless of market swings, making budgeting easier. Variable-rate plans change with the market and can mean significant variation in monthly prices including surprise spikes from extreme weather events.
A 2000 sq. ft. house uses, on average, 750 kWh (kilowatt-hours) of electricity per month or 9,100 kWh of electricity per year.
In 2023, the average residential customer in the U.S. used 855 kWh per month. Louisiana had the highest average monthly usage with 1,238 kWh per month, while California had the lowest monthly average with 491 kWh per month.
The average electricity bill for a residential customer in the US varies significantly by state and region.
According to the U.S. Energy Information Administration (EIA), in January 2025, the rates varied from as low as 9.93 cents/kWh in North Dakota to 40.51 cents/kWh in Hawaii. New England states average 28.68 cents/kWh, and Middle Atlantic states average 20.75 cents/kWh. The average rate in Texas was 14.68 cents/kWh.
Overall, the average residential electricity rate across all states was 15.95 cents/kWh for the month of January 2025.
On average, a 3000 sq. ft. house uses 1150 kWh per month, 13,600 kWh per year, or 35 kWh per day.
The average electricity bill in the U.S. in 2023 was $136.84 per month or $1,642 per year.
The average house uses between 855 kWh and 1,250 kWh per month or between 10,250 kWh per year and 15,000 kWh per year.
Solar panels may or may not increase the value of a home. Various factors determine if solar panels will add value, including: the age of the panels, the age and condition of the roof, contract details with the solar panel installer, and potential homebuyer perception.
This average is almost impossible to determine. Electricity rates vary significantly across each state and every solar developer’s proposals are unique, with widely varying terms and conditions.
American homes consume so much electricity because of the widespread use of many energy-intensive appliances and electronics. In 2020, air conditioning, space heating and water heating accounted for 19%, 12% and 12%, respectively, of all residential electricity usage. Not surprisingly, air conditioning usage is higher in southern states, while heating usage is higher in northern states. Lighting and refrigerators are used in nearly every home, and they are the next two largest sources of electricity consumption.
Everyone wants to trim their energy bill. The trick to using less energy is knowing what really works, such as:
- Switching to energy-efficient appliances: Upgrading to ENERGY STAR appliances lowers energy use without sacrificing performance.
- Upgrading lighting: LED bulbs use about 75% less energy than standard bulbs and last much longer.
- Installing a programmable or smart thermostat: These systems can dial temperatures back automatically when residents are asleep or away. This small tweak can save up to 10% a year on heating and cooling costs.
- Sealing up leaks: Gaps around windows, doors, and ducts let conditioned air escape. Weatherstripping and caulking are quick fixes that lower both heating and cooling bills.
- Using ceiling fans wisely: Fans help circulate air so residents can feel cooler without blasting the AC. In winter, reversing fans’ rotations pushes warm air down, helping warm rooms without significant energy usage.
- Unplugging unused electronics: Chargers, TVs, and computers chew up power even when off. This “phantom load” adds up, so simply unplugging electronics when not in use can use less energy and lower costs.
Even simple shifts, like running laundry in cold water or only washing full loads, shave costs over time.
Families are looking ahead as more changes shift energy costs in America. Utilities and regulators are in turn responding to new technologies, evolving policies, and responding to market demands.
Today’s energy grid looks a lot different than it did even a decade ago. Smart meters and smart grids, for example, are becoming mainstream. These digital systems track usage in real time, alert residents (and utility suppliers) if usage spikes, and help pinpoint areas to cut waste. They make the entire grid more flexible and prepare everyone for a future where energy is cleaner and more reliable.
Energy storage technology is on the rise, including new types of batteries and even hydrogen fuel cells. This tech helps store power when renewable generation is high but demand is low. When everyone cranks up the AC in July, the grid can draw on these reserves instead of relying on more expensive or polluting options.
Renewable energy like solar, wind, and hydro now accounts for a growing share of electricity generation. Many utility companies are investing in bigger wind farms, more solar fields, and community projects that let neighborhoods share power. As more renewables hit the grid, costs for fuel (like coal and gas) become less of a factor over time. This switch could eventually mean more stable, predictable monthly bills.
Other advances are just as important but less visible, including:
- Sensors that spot hidden pipe leaks
- Robots inspecting and repairing infrastructure
- Smarter software that predicts outages before they happen
Each upgrade can lower waste and cut expensive emergency repairs. These are savings that utility companies can pass on to renters and homeowners.
Rules and rates are never set in stone. In fact, shifts in policy and changes in market prices for natural gas and electricity almost always end up on residential bills. Recent years brought changes to weather-driven pricing, green energy incentives, and even tariff rules that impact where utilities get their parts and fuel.
Across the country, state and federal policy moves can drive up costs quickly. For example, adding tariffs on imported equipment can raise the cost to build new power plants or upgrade grid infrastructure. Utility companies sometimes pass these costs on to their customers, so changes in international trade policy or U.S. tariff rules often show up as line items in monthly statements.
Many states now set targets for utility suppliers to deliver a higher share of electricity from renewables. Meeting these goals can require big investments upfront but, over time, can help reduce price swings tied to fossil fuel markets.
Market reforms are opening the door for more competition among suppliers. Namely, some states are updating their rules to let customers choose their energy provider or even participate in local energy generation, like community solar. In these markets, it’s easier for consumers to find rates and plans that match how and when they use energy.
Managing the average house energy cost in America takes more than just paying the monthly bill. It requires knowing how personal habits, local rates, and new technology stack up against the national numbers. In 2025, most families will see bills near $154 each month, but real costs change based on location, home size, and personal choices.