Cheapest Electricity Rates by State 2026: Complete Comparison

Updated March 1, 2026 · 12 min read · by 13.Energy

Electricity rates vary dramatically across the US — from $0.08/kWh in Louisiana to $0.45/kWh in Hawaii. Knowing your state's rates and whether you can switch providers can save you hundreds or thousands per year. Here's the complete 2026 breakdown.

Electricity Rates by State — All 50 States Ranked

Ranked from cheapest to most expensive (residential rates, cents per kWh):

#	State	Rate (¢/kWh)	Avg Monthly Bill	Deregulated?
1	Louisiana	8.2	$108	No
2	Oklahoma	8.5	$112	No
3	Idaho	8.7	$102	No
4	Utah	8.9	$95	No
5	Washington	9.1	$97	No
6	Arkansas	9.3	$110	No
7	Wyoming	9.5	$98	No
8	Kentucky	9.8	$115	No
9	North Dakota	10.0	$108	No
10	Tennessee	10.2	$125	No
11	West Virginia	10.4	$118	No
12	Nebraska	10.5	$110	No
13	Montana	10.7	$95	Yes
14	Mississippi	10.8	$130	No
15	Oregon	11.0	$105	No
16	Iowa	11.2	$112	No
17	Missouri	11.4	$120	No
18	South Dakota	11.5	$115	No
19	Indiana	11.8	$125	No
20	Texas	12.0	$140	Yes
21-30	Georgia (12.3) \| Virginia (12.5) \| Kansas (12.8) \| Alabama (13.0) \| North Carolina (13.2) \| Colorado (13.5) \| Minnesota (13.7) \| South Carolina (13.8) \| Florida (14.0) \| Arizona (14.2)
31-40	New Mexico (14.5) \| Ohio (14.8) \| Michigan (15.0) \| Nevada (15.2) \| Wisconsin (15.5) \| Delaware (15.8) \| Pennsylvania (16.0) \| Maryland (16.5) \| Illinois (17.0) \| New Jersey (17.5)
41-50	Rhode Island (18.0) \| Maine (18.5) \| New Hampshire (19.0) \| Vermont (19.5) \| New York (22.0) \| Alaska (24.0) \| Massachusetts (27.0) \| Connecticut (29.0) \| California (32.0) \| Hawaii (45.0)

Deregulated States: You Can Switch and Save

In deregulated states, you can choose your electricity provider — and switching can save 20-40%. Here's every state where you have a choice:

Deregulated Electricity States (2026)

Full deregulation: Texas, Ohio, Pennsylvania, Illinois, New York, Connecticut, Massachusetts, New Jersey, Maryland, Delaware, Maine, New Hampshire, Rhode Island

Partial deregulation: California, Michigan, Montana, Oregon, Virginia, Georgia

How to Switch Providers

Find your current rate on your electricity bill (look for "supply charge" or "energy charge" per kWh)
Enter your ZIP code on a comparison site to see available plans
Compare fixed-rate plans at different term lengths (12, 24, 36 months)
Switch online in 5 minutes — your utility still delivers the power, you just pay less for the supply
There's no service interruption when switching

How to Lower Your Electric Bill (Any State)

Smart thermostat: Saves $131-$145/year (recommended: Ecobee, Nest, Honeywell)
LED bulbs: Saves $225/year for an average home
Weatherstripping: $20-50 in materials saves $100-200/year on heating/cooling
Energy audit: Many utilities offer free home energy audits that identify your biggest savings opportunities
Solar panels: Eliminates 80-100% of your electric bill with 6-8 year payback
Time-of-use plans: Shift energy use to off-peak hours for 30-50% lower rates

Compare Electricity Rates in Your Area

Enter your ZIP code to see every available electricity plan, sorted by price. Switch in minutes and start saving immediately.

Compare Rates Now

Why Electricity Rates Keep Rising

Grid infrastructure: Aging power lines and transformers require billions in upgrades
Renewable transition: Building new solar and wind capacity requires upfront investment
Electrification: EVs, heat pumps, and data centers are increasing demand
Extreme weather: More frequent storms and heatwaves strain the grid and increase costs
Inflation: Labor, materials, and fuel costs pass through to ratepayers

The average US residential electricity rate has increased 4.2% annually since 2020. At this pace, rates will be 25% higher by 2030 — making energy-saving investments increasingly valuable.

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