Hawaii is the state with the highest household electricity price in the United States. In February 2025, the average retail price of electricity for Hawaiian residences amounted to 41.11 U.S. cents per kilowatt-hour. California followed in second, with 32.41 U.S. cents per kilowatt-hour. Meanwhile, Utah registered the lowest price in the period, at around 12.41 U.S. cents per kilowatt-hour. Why is electricity so expensive in Hawaii? Fossil fuels, and specifically oil, account for approximately 80 percent of Hawaii’s electricity mix, so the electricity price in this state can be roughly brought down to the price of oil in the country. Oil was by far the most expensive fossil fuel used for electricity generation in the country. As Hawaii depends on oil imports, the cost of transportation and infrastructure must be added to the oil price. Electricity prices worldwide The U.S. retail price for electricity increased almost every year since 1990. In 2024, it stood at 13 U.S. cents per kilowatt-hour, almost double the charge put on electricity back in 1990. However, household electricity prices are around 25 U.S. dollar cents per kilowatt-hour lower in the U.S. when compared to European countries reliant on energy imports, such as Germany and Italy.

Retail residential electricity prices in the United States have mostly risen over the last decades. In 2023, prices registered a year-over-year growth of 6.3 percent, the highest growth registered since the beginning of the century. Residential prices are projected to continue to grow by two percent in 2024. Drivers of electricity price growth The price of electricity is partially dependent on the various energy sources used for generation, such as coal, gas, oil, renewable energy, or nuclear. In the U.S., electricity prices are highly connected to natural gas prices. As the commodity is exposed to international markets that pay a higher rate, U.S. prices are also expected to rise, as it has been witnessed during the energy crisis in 2022. Electricity demand is also expected to increase, especially in regions that will likely require more heating or cooling as climate change impacts progress, driving up electricity prices. Which states pay the most for electricity? Electricity prices can vary greatly depending on both state and region. Hawaii has the highest electricity prices in the U.S., at roughly 43 U.S. cents per kilowatt-hour as of May 2023, due to the high costs of crude oil used to fuel the state’s electricity. In comparison, Idaho has one of the lowest retail rates. Much of the state’s energy is generated from hydroelectricity, which requires virtually no fuel. In addition, construction costs can be spread out over decades.

A comprehensive dataset of average residential, commercial, and combined electricity rates in cents per kWh for all 50 U.S. states.

Graph and download economic data for Average Price: Electricity per Kilowatt-Hour in U.S. City Average (APU000072610) from Nov 1978 to Jul 2025 about electricity, energy, retail, price, and USA.

Monthly average retail electricity prices by state from EIA (Residential, Commercial, All Sectors).

The retail price for electricity in the United States stood at an average of ***** U.S. dollar cents per kilowatt-hour in 2024. This is the highest figure reported in the indicated period. Nevertheless, the U.S. still has one of the lowest electricity prices worldwide. As a major producer of primary energy, energy prices are lower than in countries that are more reliant on imports or impose higher taxes. Regional variations and sector disparities The impact of rising electricity costs across U.S. states is not uniform. Hawaii stands out with the highest household electricity price, reaching a staggering ***** U.S. cents per kilowatt-hour in September 2024. This stark contrast is primarily due to Hawaii's heavy reliance on imported oil for power generation. On the other hand, states like Utah benefit from lower rates, with prices around **** U.S. cents per kilowatt-hour. Regarding U.S. prices by sector, residential customers have borne the brunt of price increases, paying an average of ***** U.S. cents per kilowatt-hour in 2023, significantly more than commercial and industrial sectors. Factors driving price increases Several factors contribute to the upward trend in electricity prices. The integration of renewable energy sources, investments in smart grid technologies, and rising peak demand all play a role. Additionally, the global energy crisis of 2022 and natural disasters affecting power infrastructure have put pressure on the electric utility industry. The close connection between U.S. electricity prices and natural gas markets also influences rates, as domestic prices are affected by higher-paying international markets. Looking ahead, projections suggest a continued increase in electricity prices, with residential rates expected to grow by *** percent in 2024, driven by factors such as increased demand and the ongoing effects of climate change.

In 2023, Hawaiian residents paid around ****** U.S. dollars per million British thermal unit for electricity, by far the highest price in the country. This was significantly more than electricity prices in California that year, which was the second most expensive U.S. state for electricity purchases. Electricity prices across economic sectors in the U.S. Residential customers in the U.S. paid the highest electricity prices compared to the other economic sectors. This commodity price in the state of Hawaii was over ** U.S. dollar cents per kilowatt-hour above the national average of ** U.S. dollar cents per kilowatt-hour. By comparison, the price of electricity for the industrial and the commercial sectors was considerably lower. Electricity sources in the U.S. In 2023, most of the electricity generated in the U.S. came from natural gas, with the country being a leading global producer. Due to its autonomous power sector, the U.S. experienced a relatively smaller impact on electricity prices from the 2022 energy crisis compared to other nations, particularly those in Europe. By comparison, Hawaii’s high electricity prices are a consequence of the island state’s reliance on imported oil for its power generation.

Graph and download economic data for Consumer Price Index for All Urban Consumers: Electricity in U.S. City Average (CUSR0000SEHF01) from Jan 1952 to Jul 2025 about electricity, urban, consumer, CPI, price index, indexes, price, and USA.

Ireland, Italy, and Germany had some of the highest household electricity prices worldwide, as of March 2025. At the time, Irish households were charged around 0.45 U.S. dollars per kilowatt-hour, while in Italy, the price stood at 0.43 U.S. dollars per kilowatt-hour. By comparison, in Russia, residents paid almost 10 times less. What is behind electricity prices? Electricity prices vary widely across the world and sometimes even within a country itself, depending on factors like infrastructure, geography, and politically determined taxes and levies. For example, in Denmark, Belgium, and Sweden, taxes constitute a significant portion of residential end-user electricity prices. Reliance on fossil fuel imports Meanwhile, thanks to their great crude oil and natural gas production output, countries like Iran, Qatar, and Russia enjoy some of the cheapest electricity prices in the world. Here, the average household pays less than 0.1 U.S. dollars per kilowatt-hour. In contrast, countries heavily reliant on fossil fuel imports for electricity generation are more vulnerable to market price fluctuations.

United States - Average Price: Electricity per Kilowatt-Hour in U.S. City Average was 0.18200 Index in May of 2025, according to the United States Federal Reserve. Historically, United States - Average Price: Electricity per Kilowatt-Hour in U.S. City Average reached a record high of 0.18200 in May of 2025 and a record low of 0.04600 in December of 1978. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Average Price: Electricity per Kilowatt-Hour in U.S. City Average - last updated from the United States Federal Reserve on July of 2025.

The average retail price of electricity for households has risen steadily in the United States, reaching a peak of around 15.98 cents per kilowatt-hour in 2023. In the U.S., electricity prices tend to reflect base overnight costs for power plants, their maintenance, fuel costs, and the operation of power grids. How electricity rates differ across states in the U.S. The price of electricity varies widely across states. Hawaii has continuously had one of the highest rates and Washington one of the lowest. In Hawaii, the power sector is largely reliant on petroleum and diesel generators. Crude oil is a comparatively expensive fuel and prices tend to be volatile, driving up overall electricity prices. Meanwhile, electricity prices are low in states which use hydropower as the main source of electricity, as Washington. In the U.S., costs of electricity are greatly shaped by the primary power source used per state. Maintaining the power grid In addition to primary fuel purchases, the costs required to operate and maintain transmission and distribution systems also impact the prices that a household pays. In 2022, power utilities reported a peak in grid operating expenses, with transmission-related costs reaching 15.9 billion U.S. dollars and almost six billion U.S. dollars invested in distribution networks.

United States - Consumer Price Index for All Urban Consumers: Electricity in U.S. City Average was 280.04000 Index 1982-84=100 in July of 2024, according to the United States Federal Reserve. Historically, United States - Consumer Price Index for All Urban Consumers: Electricity in U.S. City Average reached a record high of 280.04000 in July of 2024 and a record low of 101.90000 in January of 1984. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Consumer Price Index for All Urban Consumers: Electricity in U.S. City Average - last updated from the United States Federal Reserve on July of 2025.

United States Electricity: Average Retail Price: EIA: Residential data was reported at 13.300 0.01 USD/kWh in Aug 2018. This records an increase from the previous number of 13.130 0.01 USD/kWh for Jul 2018. United States Electricity: Average Retail Price: EIA: Residential data is updated monthly, averaging 8.590 0.01 USD/kWh from Jul 1976 (Median) to Aug 2018, with 434 observations. The data reached an all-time high of 13.300 0.01 USD/kWh in Aug 2018 and a record low of 3.600 0.01 USD/kWh in Jan 1977. United States Electricity: Average Retail Price: EIA: Residential data remains active status in CEIC and is reported by Energy Information Administration. The data is categorized under Global Database’s United States – Table US.P002: Energy Price.

This dataset provides values for ELECTRICITY PRICE. reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

In 2024, the retail price of electricity for residential customers in the United States averaged 16.48 U.S. cents per kilowatt-hour. Households are charged more than the commercial and industrial sectors, because of the higher distribution costs. Since 2020, electricity customers have seen electricity prices increase in the U.S. and peak in 2024. The U.S. electricity market The U.S. electricity market is led by several types of electricity providers, such as cooperatives, municipal systems, and shareholder-owned electric utilities. In 2022, cooperatives were the most common type of ownership in the U.S., with more than 600 providers. That year, the U.S. electric utility industry revenue amounted to 488 billion U.S. dollars. Electricity prices around the world Electricity prices vary widely from country to country, depending on energy sources used, as well as government and industry subsidies and regulations. In 2023, Ireland and the United Kingdom had some of the highest household electricity prices worldwide. Meanwhile, U.S. households paid some of the lowest prices. However, leading oil and gas-producing regions such as the Middle East registered the cheapest rates overall.

United States - Average Price: Electricity per Kilowatt-Hour in the Mountain Census Division was 0.14700 Index in December of 2024, according to the United States Federal Reserve. Historically, United States - Average Price: Electricity per Kilowatt-Hour in the Mountain Census Division reached a record high of 0.15800 in June of 2024 and a record low of 0.11200 in December of 2019. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Average Price: Electricity per Kilowatt-Hour in the Mountain Census Division - last updated from the United States Federal Reserve on August of 2025.

United States Electricity: Average Retail Price: EIA: Total data was reported at 10.230 0.01 USD/kWh in Apr 2018. This records a decrease from the previous number of 10.370 0.01 USD/kWh for Mar 2018. United States Electricity: Average Retail Price: EIA: Total data is updated monthly, averaging 7.135 0.01 USD/kWh from Jul 1976 (Median) to Apr 2018, with 430 observations. The data reached an all-time high of 11.030 0.01 USD/kWh in Jul 2014 and a record low of 3.000 0.01 USD/kWh in Aug 1976. United States Electricity: Average Retail Price: EIA: Total data remains active status in CEIC and is reported by Energy Information Administration. The data is categorized under Global Database’s USA – Table US.P002: Energy Price.

Electricity prices for industries in the United States increased over the past few years, peaking in summer 2022. Industrial electricity prices amounted to **** U.S. cents per kilowatt-hour in May 2024, up from **** U.S. dollar cents per kilowatt-hour the previous month. The average retail electricity price for industrial consumers in the United States stood at **** U.S. dollar cents per kilowatt-hour in 2023.

The global natural gas fired electricity generation market was valued at USD 33.72 billion in 2019 and is anticipated to register an estimated USD 56.13 billion by 2027, expanding at a CAGR of nearly 5.3% during the forecast period, 2020–2027. The growth of the market is attributed to rising demand for renewable energy source and growing development of new technologies for natural gas electricity generation.
Natural gas fired electricity generation involves a process of generating electricity power using natural resources. Natural gas-based electricity is a fast-growing market and a substantial rise in the demand for the power system is due to its clean and efficient source of energy, which is less harmful to environment. Rising global concern for carbon emission and the increasing global pressure for the use of renewable energy sources, the demand for natural gas-based electricity is rising significantly.

Market Drivers, Restraints, Trends, and Opportunities

• Rising needs for electricity power for newly developed industries is expected to drive the market growth during the forecast period.
• Increasing global environment concerns and slowly shutting down of coal-based power plants are anticipated to boost the overall market development over the analysis years.
• Growing government investment for the development of natural gas electricity generation is estimated to propel the market expansion in the coming years.
• High cost of electricity generation from natural resources and lack of suitable gas generation infrastructure are projected to hamper the market development during the targeted period.
• The market growth between 2019 and 2020 has been affected due to the adverse impact of the COVID-19 pandemic and the trend is expected to continue till mid-2021.
• Large R&D investment from key players is anticipated to offer immense opportunities for the market expansion during the projected period.

Scope of the Report

The U.S. Electricity Transmission and Distribution Market size was valued at USD 82.96 USD Billion in 2023 and is projected to reach USD 101.68 USD Billion by 2032, exhibiting a CAGR of 2.95 % during the forecast period. Electricity Transmission and Distribution refers to the processes of conveying electricity from generation stations to consumers. Transmission implies direct transmission of electrical power through power lines, although distribution focuses on the distribution of the electricity to the consumer through substations. The areas of usage cover home use, businesses, and industries. There exists Overhead and underground systems, transporting involving transmission lines which are mostly overhead while the distribution lines which may be either overhead or underground. The following are benefits related to efficient electrification, electricity provision reliability, economic development, and incorporation of renewable power systems. Current Industry trends in the U. S. Market has anteriorly focused on advancement in the structure of the grid, smart grid integration, and fortification against cyber-attack and natural calamities in parallel to the rising capital investments in renewable energy, energy storage systems as well for improved efficiency and sustainability. Recent developments include: July 2023: Duke Energy announced that it had reached an agreement to sell its commercial distributed generation business to a subsidiary of ArcLight Capital Partners, LLC, a significant middle market infrastructure investor, for an enterprise value of USD 364 million., February 2023: Energy Hub and Siemens join forces to enhance their ecosystem of partners for their grid software business. EnergyHub offers a world-class grid-edge management solution, integrating its DERMS platform with turnkey program management to enable utilities to scale grid-edge resilience., August 2021: Mitsubishi Electric Corporation declared that the company had entered into compliance to acquire U.K.-based Smarter Grid Solutions. Smarter Grid Solutions is a major provider of distributed energy resources (DER) management software for distributed energy resource operators.. Key drivers for this market are: Growing Focus on Safety and Organization to Fuel Market Growth. Potential restraints include: High Capital Cost Restrain the Growth of the Market. Notable trends are: Growth of IT Infrastructure to Bolster the Demand for Modern Cable Tray Management Solutions.