Energy guide · 2025

Cheapest states for electricity

A source-bounded comparison of EIA-reported annual residential electricity averages across US jurisdictions.

11.81¢/kWh
Cheapest · North Dakota
40.59¢/kWh
Priciest · Hawaii
3.4×
Spread

North Dakota has the lowest 2025 residential state average

In the U.S. Energy Information Administration's 2025 annual-frequency retail-sales series, North Dakota has the lowest residential average revenue per kWh at 11.81¢/kWh, versus 40.59¢/kWh in Hawaii, the highest: a 3.4× statewide benchmark spread. The source table does not establish why the averages differ.

How far the extremes sit from the national benchmark

North Dakota sits 32% below the US residential average, while Hawaii is 135% above it. Those are statewide annual benchmarks, not explanations of a utility bill or rate-setting decision.

32%
North Dakota below US average
135%
Hawaii above US average
10
lowest-rate states shown below
10
highest-rate states shown below

Source: EIA retail-sales API, 2025 annual-frequency residential averages.

The 10 Cheapest States for Electricity

These are the lowest residential state averages in the displayed 2025 annual-frequency EIA period. The ranking does not establish a business-sector result, an individual customer's tariff, or whether the order persists in another period.

Compiled by RateWatt from EIA annual retail-sales averages.

The 10 cheapest states for electricity (2025)

Average residential price, cents per kWh.

¢/kWh
  • North Dakota
    12
  • Idaho
    12
  • Nebraska
    12
  • Louisiana
    13
  • Arkansas
    13
  • Montana
    13
  • Utah
    13
  • Washington
    13
  • Oklahoma
    13
  • Nevada
    13
Source EIA retail-sales API As of 2025
Rank State Avg Rate (¢/kWh)
1 North Dakota 11.81
2 Idaho 11.82
3 Nebraska 12.34
4 Louisiana 12.57
5 Arkansas 12.84
6 Montana 12.98
7 Utah 13.07
8 Washington 13.11
9 Oklahoma 13.12
10 Nevada 13.15

Source: EIA retail-sales API, 2025 annual-frequency residential averages. See all state averages.

The 10 Most Expensive States for Electricity

These are the highest reported annual residential averages in the EIA comparison. The table measures rates; it does not identify their causes.

The 10 most expensive states (2025)

Average residential price, cents per kWh.

¢/kWh
  • Hawaii
    41
  • California
    33
  • Massachusetts
    30
  • Rhode Island
    29
  • Connecticut
    29
  • Maine
    28
  • New York
    26
  • Alaska
    26
  • New Hampshire
    25
  • Vermont
    23
Source EIA retail-sales API As of 2025
Rank State Avg Rate (¢/kWh)
1 Hawaii 40.59
2 California 32.54
3 Massachusetts 30.48
4 Rhode Island 29.46
5 Connecticut 29.38
6 Maine 27.78
7 New York 26.39
8 Alaska 26.09
9 New Hampshire 24.56
10 Vermont 22.92

Browse all state profiles for the reported annual sector averages and generation data.

What this comparison can show

The EIA annual series lets you compare reported statewide residential averages, sector averages, and generation shares on a common vintage. It does not identify the cause of a state's rate, predict a utility bill, measure reliability, or show a specific tariff. Those questions need utility tariffs, public-utility commission records, and other source material beyond the dataset serving this page.

Use the state profiles to inspect the reported rate and generation data for a particular jurisdiction, or the price trends to compare the historical annual series. Treat each result as a benchmark before checking the current tariff for your own utility and plan.

Cheapest and most expensive state ranks are EIA benchmarks for one vintage, not a relocation quote or a bill forecast.
U.S. EIA retail-sales API · RateWatt 2025 residential ranking

What This Means for Relocation and Business Decisions

Use the statewide averages as a comparison input, not as a relocation or purchasing recommendation:

  • Households: Multiply the rate difference by your own expected kWh, then add the fixed charges and taxes in your utility tariff.
  • Businesses: Check the applicable commercial or industrial tariff rather than treating the residential average as an operating-cost quote.
  • Energy projects: Use a local tariff, project quote, and interconnection terms for any solar or efficiency decision; this statewide average cannot calculate payback.
  • Moving: Compare the same annual vintage across states, then verify the service territory and plan at the prospective address.

Browse all state profiles on RateWatt for annual rates, sector breakdowns, and generation-mix data.

Frequently Asked Questions

Which state has the cheapest electricity in the US?

North Dakota has the lowest reported annual residential average in the 2025 EIA data at 11.81¢/kWh per kWh. This is a statewide benchmark, not a utility quote.

Why is Hawaii's electricity so expensive?

Hawaii has the highest reported annual residential average in this 2025 comparison at 40.59¢/kWh per kWh. The EIA rate table used here does not establish the cause of a state's rate.

Does cheap electricity mean worse reliability?

No reliability measure is included in this annual rate comparison. A lower statewide average does not by itself establish reliability, resilience, or an individual utility's service quality.

Do deregulated states have cheaper electricity?

This comparison does not test whether market structure causes a rate level. It reports annual statewide residential averages from the EIA; compare a specific utility plan with its own tariff and disclosure documents.

How much could I save by moving to a low-cost electricity state?

Multiply the difference between the reported annual averages for North Dakota (11.81¢/kWh) and Hawaii (40.59¢/kWh) by your own annual kWh usage for a rough benchmark. It is not a bill estimate because utility tariffs, fixed charges, taxes, and usage vary.

Are electricity rates the same for everyone in a state?

No. This page reports annual statewide averages. Your utility, tariff, fixed charges, taxes, and usage determine your actual bill.

Sources

This content is for informational purposes only. Electricity rates fluctuate and are reported as approximate annual averages. Contact your local utility for current rates specific to your account.

How to use RateWatt with the source boundary intact

Start with how EIA average revenue per kWh is built, then use state-level rate data to compare stored annual-frequency benchmarks. The rate-structure guide explains why those averages cannot replace a utility tariff. The state-difference guide reports the observed spread without assigning a cause. RateWatt's retail figures and its generation-mix data answer separate questions; neither series is an individual utility quote.

Find your state’s number

Compare a statewide annual benchmark with your own tariff and expected usage.

Rates are EIA state averages, your utility, plan, and usage set your actual bill.

The live rate figures on this page are pulled directly from the EIA database. This guide does not infer the causes of state rate differences from those figures. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2025.