How much does the average electricity bill costs

When it comes to major expenses incurred when you own a house or have rented one, mortgages and rent are what comes to mind. But there are some additional and crucial expenses that you need to factor in too, and those are your utility bills.

Within utility bills, the expenses for services such as water, electricity, internet, garbage disposal, heating, and cooling are covered. In the modern world, what you cannot do without is electricity; after all, it’s what powers everything! So let’s find out what’s the average electricity bill in the US, how it’s calculated, and the things you can do to reduce it.

Average Electricity Bill In The US

An average American family spends about $250 on monthly utilities which include water, electricity, internet, garbage disposal, heating, and cooling. This cost differs depending on the region, its weather conditions, and the availability of resources.

According to the Energy Information Administration, as of 2020, the average monthly electricity bill in the US is $117.46, with Hawaii having the highest bill of $162.66 and Utah with the lowest of $80.24. The difference, as you can see, is nearly double! This stark difference in the electricity bill is influenced by the below factors:

Electricity Cost In Your Region

Your power bill may vary even if your energy consumption remains constant after relocating from one location to another. The price of power varies depending on the state, county, or even town. If you live or want to move to a Pacific Non contiguous Region such as Alaska or Hawaii, your average monthly electricity price will be greater than in other states.

Your Total Electricity Consumption

The size of your house and weather conditions outside are factors that greatly influence your electricity consumption. During winters, you may use the heater to maintain warmth inside your house and during summer, you may want to switch on the air conditioner. At the end of the day, it all boils down to the amount of energy consumed. Although electricity consumption is unavoidable and is a daily necessity, you may save a lot of money by following several strategies to reduce energy consumption and lower your electric bill. You may read our blog on How to make your home Energy Efficient?

How Is Your Electricity Bill Calculated?

The standard unit of measurement of electricity is a kilowatt-hour (kWh). The average price per kilowatt-hour determines how much your electric bill is going to cost you at the end of each month. The prices vary depending on the region you are living in and the weather conditions too.

The average electric bill is calculated by multiplying your average kWh consumption by the average price per kWh in your area divided by 100. The average cost of electricity in the country is about $13.15 per kWh.

Some states rely on other states for resources and infrastructure to maintain the constant supply of energy to households while some generate their electricity without external help. This is a major reason for varying rates of electricity apart from weather conditions.

Regulated states are the ones in which you have no option to shop around for other electricity suppliers in the market. The rate is fixed and the utility company has complete control over the transmission and pricing. It ensures long-term certainty and non-fluctuating prices.

A deregulated state gives you the freedom to look around for the best prices on electricity in your area and choose the plan that fits your consumption pattern the best.

The plethora of electricity suppliers in the deregulated states has proved beneficial over the years as it gives the consumer an option to select the best possible pricing and save on utility bills.

At times, the population density factors in to increase the average electricity cost. The denser the population, the more is the demand for electric supply, and hence, the increased electric bills.

Some Methods To Reduce Your Electricity Bill

Switch Off The Lights When Not In Use

We’ve been hearing this since we were kids, and now we say the same to our kids. Switching off the lights when leaving your room disconnecting the electric appliances after you’re done using them is a common method to save power little by little. Even 10 minutes of idle energy is a lot of energy wasted when calculated for a year.

Install Green Roofs

Green roofs are a one-time investment. Installing a green roof not only improves the appearance of your home from the outside but also aids in the absorption of heat in the summer and the retention of warmth in the winter. It’s an extremely efficient method of conserving energy and lowering your power cost. Green roofs have been increasingly popular in recent years as a viable alternative for combating climate change and maintaining the ecological balance. Also see our article on the cost of new roof.

Install Solar Panels

Quite possibly the best way to reduce your electric bill is to install solar panels on the roof of your house. If you live in a hotter section of the country, this could work in your favor even more. Solar panels use the sunlight to generate direct current electricity. This is sustainable energy for which you don’t even have to pay any sum to anyone. On the contrary, it saves you tons of money all year round helping you focus on other utility bills.

Invest In Highly Efficient Appliances

Replace your old appliances with newer models that have higher efficiency ratings. When compared to new appliances with Energy Star ratings, old appliances tend to use more energy and water to work better. Appliances such as the washing machine, dishwasher, and refrigerator, among others, are used frequently in every household, and hence, it’s important to keep a check on their energy consumption. Saving energy in this way will help you drastically reduce your high electricity bill.

Also See: How prepare Appliances for a move? | How to Move a Refrigerator

Use Dimmer Switches

There are times when all you need is a little light to brighten the room without disturbing or waking everyone else in the room. It’s impossible to generate the same effect with normal high-illumination lights. Not only do these lights consume more energy, but there’s also no way to customize the settings to meet your needs. Installing dimmer lights will allow you to regulate the amount of light you require while also saving electricity.

Ditch The Incandescent Light Bulbs

Instead of using the same old filament light bulbs, switch to LED light bulbs that consume significantly less energy and are not that heavy on the pocket either. These lights come with a ton of advantages such as longer life-span, low-voltage operation, energy efficiency to name a few.

Stack Your Fridge

The more food you keep in your refrigerator and freezer, the less energy it will need to keep it cool. This is due to the fact that food acts as an insulator. A half-empty fridge still uses more energy to maintain the proper temperature inside, which in turn, increases your electricity bill.

Do Regular HVAC Maintenance

It’s important for you to keep your heating, ventilation, and air conditioning (HVAC) system in perfect running condition. Schedule periodic maintenance and cleaning for the same to ensure more energy efficiency.

Wash Your Clothes In Cold Water

Your washing machine uses a tremendous amount of energy to heat water. If you wash your clothes frequently, this could leave a huge dent in your wallet. Adjusting the washing machine to the cold-water setting is one solution to this problem. With this small key swap, you may save a lot of money in the long term.

Install Smart Power Strips

Many items, such as the TV, computer, and audio system, continue to use energy long after they’re turned off, increasing your bill. This is referred to as phantom load. Unplugging all such appliances when not in use is one solution to this problem. Use smart power strips to plug these appliances in, and then switch the strip off when you’re done using them.

Cook With The Lid On

Cooking with a lid on helps in containing the heat that tries to escape and thus, saves some energy from being wasted. It also helps the food to boil evenly by providing equal heat to the top and the bottom of the utensil you are using.

Run Dishwasher/Laundry During Off-Peak Hours

Heavy appliances such as the dishwasher, washing machines use a high amount of energy to function. You can use this little trick to reduce your electric bill by using your dishwasher and washing machine during the night. If your electric company provides a discounted rate for consumption during off-peak hours, then it could save you some serious bucks!

Use A Smart Thermostat

A smart thermostat is perhaps the most cost-effective energy-saving investment you can make. It aids in controlling the temperature of your home in accordance with your needs and the weather outside. Advanced thermostats allow you to control them even from remote locations through your smartphones. When you’re not at home, you’ll find it easy to turn down the heat. Smart thermostats help you save a lot of energy and, eventually, money on your electric bill in the long term.

Get An Energy Audit

Contact your electric company and ask for an energy audit of your house if they provide such a facility. Otherwise, you can always call a local expert to get the job done. The audit offers you a solid understanding of where your energy is being consumed the most and how you may save money on your electric bills by reducing your energy use.


If you plan to move to a different area or state in the country, it’s always good to be well-informed about the current rates of utilities like electricity and water since these are necessities and would require a separate budget to be set aside for the same. You must also weigh the pros and cons of moving to a regulated or a deregulated state depending on your usage.

See Also: Best Out of State Moving Companies in the USA | Cost of Average Water Bill

FAQs On How Much Does Average Electricity Bill Cost

How Much Does The Average Person Spend On Electricity A Month?

An average American spends about $114-120 dollars on electricity per month. Again, this depends on several reasons such as the area one lives in, the price of electricity there, and the weather conditions.

What Costs The Most On Electric Bills?

Air conditioners, washing machines, and refrigerators consume a high amount of energy to operate at optimum capacity and hence, contribute to your electric bill the most. Old appliances are not as energy-efficient as the new advanced appliances that use considerably less energy than them. Look for WaterSense certification in appliances that require the usage of water such as the washing machine and dishwasher.

How Do I Keep My Electric Bill Low?

To save money on your electricity costs, use your heavy appliances like the dishwasher, washing machine, and air conditioner during off-peak hours. Avoid phantom loading by using smart power strips to eliminate unnecessary energy waste from gadgets that demand power even when they are turned off or in standby mode.

What Uses The Most Electricity?

Bulky appliances like a water heater, television, HVAC systems, refrigerator, dishwasher, computer, and old incandescent light bulbs use the most electricity in your house. An average refrigerator uses up to 60 kWh/month. So, an effective way to keep the energy consumption in check is through regular servicing of these appliances, updating them with the latest energy-efficient ones and unplugging them when not in use.

Written by

Rostislav Shetman is the founder of 9Kilo Moving. He has been in the moving and relocation industry for more than 25 years, making him an expert in his field. Rostislav started as a helper, dispatcher and driver and has worked his way up to owning his own company. He takes great pride in his work and enjoys helping people relocate across the United States of America. When he's not working, Rostislav enjoys spending time with his family and friends. They are the light of his life and bring him happiness every day.