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.

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

Solar panel manufacturers have thrived despite some hurdles throughout the period. Companies saw an uptick in the need for solar panels as the country continued emphasizing renewable energy. The Inflation Reduction Act bolstered and extended production and investment tax credits, making domestic manufacturing more viable. Even so, manufacturers have been plagued by import penetration, specifically from Asian products, which flooded the US market with low-cost solar modules and cells. In 2022, the Biden Administration announced waiving tariffs on solar panel imports from Vietnam, Malaysia, Cambodia and Thailand to accelerate solar panel installations across the country in favor of renewable energy. While this didn't hinder revenue, it caused a slowdown in growth in the middle of the period as import penetration was at an all-time high. Even so, these waivers expired in June 2024, providing operators with growth. Overall, solar panel manufacturing revenue has swelled a CAGR of 2.7% to $21.4 billion in 2025, including a 6.6% jump in 2025 alone. Through 2025, solar panel manufacturers have significantly benefited from the Inflation Reduction Act, which offers production tax credits to companies that expand or build manufacturing facilities and produce specific types of components. These credits incentivize expansion, enabling domestic solar panel manufacturing to increase substantially, boosting revenue and positioning the U.S. as one of the world's top producers. Additionally, this expansion prepares manufacturers to meet domestic demand during the outlook period, reducing reliance on imports. Revenue is set to push up as tariff waivers expired in June 2024, causing import penetration to contract throughout the outlook period. Even so, because of the One Big Beautiful Bill, government tax incentives are set to phase out for residential customers in 2025 and commercial customers in 2027, companies will exhibit a temporary surge followed by a slowdown in revenue. They will also face pushback from traditional energy sources (think natural gas) as President Trump aims to bolster the country’s fossil fuel production. Manufacturers must ramp up research and development to help take solar power to the next level. Revenue is set to climb at a CAGR of 5.1% over the five years through 2030, reaching $27.6 billion.