Electricity Cost Guide: kWh Rates, Bills & Appliance Costs
How Electricity Is Priced
Electricity is sold in kilowatt-hours (kWh). One kWh = using 1,000 watts for one hour. Your electric bill = total kWh × rate per kWh + fixed charges + taxes.
Bill components:
- Energy charge: $/kWh for actual usage (largest portion)
- Demand charge: $/kW for peak power (commercial only, typically)
- Fixed/service charge: Monthly connection fee ($5–$30)
- Fuel adjustment: Variable surcharge for fuel cost changes
- Taxes and fees: State, local, and utility-specific charges
Average Electricity Rates by State (2024)
| State | ¢/kWh | Monthly Bill (1,000 kWh) |
|---|---|---|
| US Average | 16.0¢ | $160 |
| California | 30.2¢ | $302 |
| Connecticut | 28.5¢ | $285 |
| Massachusetts | 27.8¢ | $278 |
| New York | 24.1¢ | $241 |
| Florida | 14.5¢ | $145 |
| Texas | 14.2¢ | $142 |
| Ohio | 13.5¢ | $135 |
| Georgia | 13.2¢ | $132 |
| Washington | 11.5¢ | $115 |
| Louisiana | 11.2¢ | $112 |
| Idaho | 10.8¢ | $108 |
| Utah | 10.5¢ | $105 |
Note: Rates vary by utility within each state. Commercial rates differ from residential. Check your utility's rate schedule for exact pricing.
Appliance Operating Costs
| Appliance | Watts | Hours/Day | Cost/Day | Cost/Year |
|---|---|---|---|---|
| Central AC (3-ton) | 3,500 | 8 | $4.48 | $550 (season) |
| Window AC (12,000 BTU) | 1,200 | 8 | $1.54 | $190 (season) |
| Electric furnace (15 kW) | 15,000 | 6 | $14.40 | $1,300 (season) |
| Space heater | 1,500 | 8 | $1.92 | $700 |
| Electric water heater | 4,500 | 3 | $2.16 | $788 |
| Dryer (electric) | 5,000 | 1 | $0.80 | $292 |
| Refrigerator | 150 | 24 | $0.58 | $211 |
| Dishwasher | 1,800 | 1 | $0.29 | $106 |
| LED TV (55") | 100 | 5 | $0.08 | $29 |
| Desktop computer | 200 | 8 | $0.26 | $94 |
| LED bulb | 10 | 6 | $0.01 | $3.50 |
At $0.16/kWh national average. In California ($0.30/kWh), multiply all costs by 1.9×.
How to Calculate Your Electric Bill
Monthly cost = (Total watts ÷ 1,000) × hours used × $/kWh
Example: Average US Home
Average US home uses 886 kWh/month.
At $0.16/kWh: 886 × $0.16 = $141.76 energy charge
Plus fixed charge ($10) + taxes ($8) = ~$160/month
Time-of-Use (TOU) Rates
Many utilities offer TOU pricing where rates vary by time of day:
| Period | Typical Hours | Rate | Tip |
|---|---|---|---|
| Off-peak | 10 PM – 6 AM | $0.08–$0.12/kWh | Run dishwasher, laundry, EV charging |
| Mid-peak | 6 AM – 4 PM, 9 PM – 10 PM | $0.14–$0.20/kWh | Normal usage |
| On-peak | 4 PM – 9 PM | $0.25–$0.45/kWh | Minimize usage (cooking, AC, laundry) |
Ways to Reduce Your Electric Bill
- LED lighting: Saves 75% vs incandescent. 20 bulbs × 60W → 10W = 1 kWh/day saved = $58/year
- Smart thermostat: Saves 10–15% on heating/cooling. $100–$200/year savings.
- Seal air leaks: Caulking and weatherstripping saves 5–10% on HVAC.
- Upgrade insulation: Attic insulation from R-11 to R-49 saves 20–30% on heating.
- Use TOU rates: Shift heavy loads to off-peak hours.
- Solar panels: Can eliminate 50–100% of electric bill. Payback 5–10 years.
Standards Reference
- EIA — U.S. Energy Information Administration (rate data)
- DOE — Department of Energy (efficiency standards)
- EPA ENERGY STAR — Appliance efficiency ratings
- Local utility rate schedules
Frequently Asked Questions
How much does 1 kWh of electricity cost?
The US average is $0.16/kWh (2024), but ranges from $0.10 (Utah, Idaho) to $0.30 (California, Connecticut). Check your utility bill for your exact rate. Commercial rates typically differ from residential.
How do I calculate my electric bill?
Total your kWh usage (from your meter), multiply by your rate per kWh, then add fixed charges and taxes. Example: 900 kWh × $0.16 = $144 + $10 fixed + $8 tax = $162 total. TOU rates require splitting usage by time period.
What uses the most electricity in a home?
Heating and cooling (HVAC) typically accounts for 40–50% of a home's electricity. Water heating is 15–20%. Appliances (dryer, dishwasher, refrigerator) are 15–20%. Lighting and electronics are 10–15%. HVAC is the biggest target for savings.
Is it cheaper to run appliances at night?
Yes, if you're on time-of-use (TOU) rates. Off-peak rates (typically 10 PM – 6 AM) can be 40–60% cheaper than on-peak. Run your dishwasher, laundry, pool pump, and EV charger during off-peak hours to save money.
How much does it cost to charge an EV?
A typical EV battery is 60–80 kWh. At $0.16/kWh: 75 kWh × $0.16 = $12 per full charge. At 3.5 miles/kWh, that's $0.046/mile. A gas car at 30 MPG and $3.50/gallon costs $0.117/mile — EVs cost 60% less to fuel.