Tennessee Electricity Price Trends

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Historical rates by sector, 2016–2025

2025 Residential

13.18¢/kWh

-23.8% vs US avg

Tennessee residential electricity costs 13.18¢/kWh in 2025

According to the U.S. Energy Information Administration retail-sales series (2025 annual frequency), residential electricity in Tennessee costs 13.18¢/kWh, 23.8% below the national average. Since 2016, the rate has changed +26.6%.

Where Tennessee sits: according to EIA's annual retail-sales series, its residential rate changed +26.6% between 2016 and 2025, the 35th steepest of 51 jurisdictions (the 50 states and the District of Columbia), a steeper move than 32% of the other 50. Ranked on the same 2016 to 2025 window for every state; see the methodology.

Annual Average Prices

Year Residential US Avg
2025 13.18¢/kWh +6.1% 17.30¢/kWh
2024 12.42¢/kWh +1.9% 16.48¢/kWh
2023 12.19¢/kWh -0.5% 16.00¢/kWh
2022 12.25¢/kWh +10.7% 15.04¢/kWh
2021 11.07¢/kWh +2.9% 13.66¢/kWh
2020 10.76¢/kWh -1.0% 13.15¢/kWh
2019 10.87¢/kWh +1.5% 13.01¢/kWh
2018 10.71¢/kWh -0.1% 12.87¢/kWh
2017 10.72¢/kWh +3.0% 12.89¢/kWh
2016 10.41¢/kWh 12.55¢/kWh

Reading the Tennessee Price Trend

According to the U.S. Energy Information Administration's retail-sales series, RateWatt currently holds 2,040 annual state-sector records spanning 2016 through 2025. These are statewide annual averages, not individual utility quotes. See the methodology for source scope and refresh cadence.

Tennessee residential electricity moved from 10.41¢/kWh in 2016 to 13.18¢/kWh in 2025, a cumulative change of +26.6% over 10 reporting years. The more recent five-year window changed +22.5% since 2020; comparing the two windows describes whether the pace changed, but does not establish why. Against the national residential benchmark of 17.30¢/kWh, Tennessee now sits 23.8% below the U.S. average for 2025.

Commercial customers in Tennessee paid 12.87¢/kWh in 2025, while industrial customers paid 6.74¢/kWh. Sector differences can reflect customer mix, consumption volume, tariff design, and cost allocation; this statewide series does not identify which factor drives a state's gap. Here the residential-to-industrial multiplier is about 2.0x, one descriptive benchmark for comparison with peer states.

EIA reports 8 generation sources for Tennessee; ranked by share of generation they run nuclear, coal, natural gas, hydro, solar. Of the 11 sources EIA reports somewhere in the country, Tennessee records no generation from geothermal, pumped storage or wind. That is an absence in the published series, not a statement that no such capacity exists. This price series and that generation series are published separately and are not joined here, so nothing on this page attributes a price movement to a fuel mix. Adjacent entries in the alphabetical state browser are South Dakota and Texas; their pages carry the same series on the same basis. EIA publishes the annual series once per year and revises prior years without renumbering them, so a figure here can change when a later release restates it.

The annual average is close to what most months look like

Tennessee is one of 20 states, of the 51 with a full monthly record, whose residential rate moves within a narrow band across the year. The monthly series runs from about 12.16¢/kWh in January to about 13.21¢/kWh in November, a spread of 8.3% around the monthly mean. Where that spread is this small, the annual figures in the table above describe an ordinary month here reasonably well, which is not true of every state.

Within-year profile computed from 36 monthly observations across 3 complete calendar years in EIA's residential series (monthly data begins 2023-01). Partial calendar years are excluded so a newer partial tail cannot bias January–May against later months. Peak and trough are the highest and lowest month averages across that record, not a forecast; the spread is quoted against this state's own monthly mean.

How often the rate has actually fallen

This is not a one-way climb: Tennessee's residential rate fell in 3 of 9 steps, more often than most states manage, with the largest drop in 2020 at 0.11¢.

Recent years ran hotter, but only modestly

The gap between Tennessee's recent pace (4.1% a year) and its long-run pace (2.7% a year) is 1.5%, smaller than in 59% of states. Prices here still rose, but the last five years did not break sharply from the state's own trend.

Both figures are compound annual rates over EIA's published residential series, so the five-year and full-record windows are directly comparable; the national comparison ranks all 51 states and DC on the same measure. Annual state-level averages, not individual bills.

Residential
Commercial
Industrial
US Average (Residential)
5.3¢ 8.3¢ 11.3¢ 14.3¢ 17.3¢ 201620182020202220242025 Tennessee residential, 2025: 13.18¢ per kWh Tennessee residential, 2024: 12.42¢ per kWh Tennessee residential, 2023: 12.19¢ per kWh Tennessee residential, 2022: 12.25¢ per kWh Tennessee residential, 2021: 11.07¢ per kWh Tennessee residential, 2020: 10.76¢ per kWh Tennessee residential, 2019: 10.87¢ per kWh Tennessee residential, 2018: 10.71¢ per kWh Tennessee residential, 2017: 10.72¢ per kWh Tennessee residential, 2016: 10.41¢ per kWh Tennessee commercial, 2025: 12.87¢ per kWh Tennessee commercial, 2024: 12.05¢ per kWh Tennessee commercial, 2023: 11.80¢ per kWh Tennessee commercial, 2022: 12.02¢ per kWh Tennessee commercial, 2021: 10.87¢ per kWh Tennessee commercial, 2020: 10.56¢ per kWh Tennessee commercial, 2019: 10.65¢ per kWh Tennessee commercial, 2018: 10.51¢ per kWh Tennessee commercial, 2017: 10.55¢ per kWh Tennessee commercial, 2016: 10.19¢ per kWh Tennessee industrial, 2025: 6.74¢ per kWh Tennessee industrial, 2024: 6.21¢ per kWh Tennessee industrial, 2023: 6.23¢ per kWh Tennessee industrial, 2022: 6.55¢ per kWh Tennessee industrial, 2021: 5.51¢ per kWh Tennessee industrial, 2020: 5.33¢ per kWh Tennessee industrial, 2019: 5.68¢ per kWh Tennessee industrial, 2018: 5.68¢ per kWh Tennessee industrial, 2017: 5.83¢ per kWh Tennessee industrial, 2016: 5.68¢ per kWh US residential average, 2025: 17.30¢ per kWh US residential average, 2024: 16.48¢ per kWh US residential average, 2023: 16.00¢ per kWh US residential average, 2022: 15.04¢ per kWh US residential average, 2021: 13.66¢ per kWh US residential average, 2020: 13.15¢ per kWh US residential average, 2019: 13.01¢ per kWh US residential average, 2018: 12.87¢ per kWh US residential average, 2017: 12.89¢ per kWh US residential average, 2016: 12.55¢ per kWh
Annual average revenue per kilowatt-hour for Tennessee by sector and the US residential benchmark. Focus or tap a point for its year and exact value; the full values are also listed in the table below.

2025 Rate

13.18¢/kWh

vs National Avg

-23.8%

5-Year Change

+22.5%

Since 2016

+26.6%

Trajectory peers

Which states followed a similar residential price path?

Each state begins at an index of 100 in 2016; the comparison then measures how closely its annual path follows Tennessee through 2025. This compares the shape of the EIA series, not the price level, and does not claim that two states share the same market or causes.

Closest path shapes

Nearest matches after each state starts at an index of 100

  1. Minnesota +24.9% since 2016
  2. Georgia +28.1% since 2016
  3. Kentucky +26.2% since 2016
  4. Oklahoma +28.6% since 2016
  5. Colorado +31.3% since 2016
  6. New Mexico +25.4% since 2016
  7. Wisconsin +29.1% since 2016
  8. Alabama +34.3% since 2016

Other steeper paths

Nearest unused states with a larger 2016–2025 rise

  1. Arkansas +29.4% since 2016
  2. Vermont +32.0% since 2016
  3. Virginia +34.5% since 2016
  4. Alaska +28.5% since 2016
  5. Michigan +31.5% since 2016
  6. North Carolina +27.1% since 2016

Other gentler paths

Nearest unused states with a smaller 2016–2025 rise

  1. Arizona +26.1% since 2016
  2. Iowa +14.9% since 2016
  3. Missouri +20.3% since 2016
  4. Montana +18.6% since 2016
  5. North Dakota +16.2% since 2016
  6. Idaho +18.8% since 2016

Calculated from 51 jurisdictions covering the complete 2016–2025 annual window. Directional lists exclude states already shown as the closest matches, so every name appears once.

Provider record

Largest bundled residential providers EIA reports for Tennessee

EIA-861 table 6 lists the 20 largest reporting entities here for 2024, ordered by residential customer count. A provider's appearance is not evidence that it serves every address or that a household can choose it.

ProviderOwnershipResidential customersEIA average price
Nashville Electric ServiceMunicipal417,64013.47¢/kWh
City of Memphis - (TN)Municipal380,28612.16¢/kWh
Middle Tennessee E M CCooperative307,37011.76¢/kWh
Knoxville Utilities BoardMunicipal193,70712.54¢/kWh
City of Chattanooga - (TN)Municipal164,41712.32¢/kWh
Volunteer Electric CoopCooperative104,38712.19¢/kWh
Cumberland Elec Member CorpCooperative100,58512.99¢/kWh
City of Clarksville - (TN)Municipal75,95312.77¢/kWh
Johnson City - (TN)Municipal72,20512.41¢/kWh
Duck River Elec Member CorpCooperative71,34212.50¢/kWh
City of Lenoir - (TN)Municipal62,45511.95¢/kWh
Upper Cumberland E M CCooperative45,56012.77¢/kWh
Southwest Tennessee E M CCooperative43,75012.90¢/kWh
Appalachian Electric CoopCooperative43,70912.93¢/kWh
Kingsport Power CoInvestor Owned43,15912.84¢/kWh
Sevier County Electric SystemMunicipal35,62611.33¢/kWh
Sequachee Valley Electric CoopCooperative33,20612.97¢/kWh
City of Greeneville - (TN)Municipal32,38811.90¢/kWh
City of Jackson - (TN)Municipal31,85611.97¢/kWh
Columbia Power System - (TN)Municipal31,16612.00¢/kWh

“Average price” is EIA's reported residential revenue divided by sales, not a tariff, plan offer, or bill quote. Source: EIA Electric Sales, Revenue, and Average Price, table 6.

Frequently Asked Questions

Are electricity prices going up in Tennessee?
From 2016 to 2025, residential electricity in Tennessee changed from 10.41¢/kWh to 13.18¢/kWh (+26.6%). Over the past 5 years, the change was +22.5%.
How does Tennessee's electricity price compare to the national average?
Tennessee's residential electricity rate of 13.18¢/kWh is 23.8% below the national average of 17.30¢/kWh (2025).
What do businesses pay for electricity in Tennessee?
Commercial electricity in Tennessee costs 12.87¢/kWh (2025), compared to 13.18¢/kWh for residential customers. These are separate statewide sector averages; this series does not identify why they differ.
Where does this price trend data come from?
All electricity price data is from the U.S. Energy Information Administration (EIA), the official federal statistics agency for energy data. The table, chart, rankings, and long-window changes use annual statewide averages in cents per kilowatt-hour; the within-year profile uses EIA's separate monthly statewide series.

Data from the U.S. Energy Information Administration. Prices in cents per kilowatt-hour (kWh). Annual averages.

Source: U.S. Energy Information Administration, Electricity (Retail Sales of Electricity to Ultimate Customers). See our methodology for details. Retrieved and formatted by RateWatt