Electric utility rates have increased year over year going back decades. The Energy Information Administration (EIA) keeps data going back years which is easily accessible by anyone to view your state and the entire US market as a whole.
There are many reasons why electric utilities are increasing their electric rates, including infrastructure upgrades, overhead costs, and installing new generation capacity. We discuss these and some specific cases in this video:
Utility escalation rates are featured as a major point in every single residential solar project proposal. Every company will include some level of utility escalation in their savings or return on investment (ROI) calculations to show how much money the system will save following market trends. It’s common practice for solar companies to quote anywhere from 3%-7% utility escalation in their proposals. With the data below, homeowners and solar providers can analyze their solar quotes to better determine if the estimated savings figures are accurate.
Before diving into each state individually, let’s look at some notable data points for the US. All the data represented covers average electric rates from 2014 to August 2024.
Table of Contents
US Residential Electric Market
In 2014, the US average electric rate was 13.09 cents/kWh.
As of August 2024, the US average electric rate sits at 17.30 cents/kWh. This represents a 32% overall increase in the average electric price over the last 10 years.
For the entire US, the average yearly change over the last 10 years is 2.89%.
The lowest average percent change of utility rate was between 2017-2018, amounting to only a 0.10% increase. The highest change came in 2021-2022 with an average 8.88% increase. Notably, some states did have years where the electric rates went down year over year, but the average for the entire market did not.
Top 5 Highest % Change 2014-2024
- California – 91.08%
- Massachusetts – 69.18%
- West Virginia – 65.31%
- Rhode Island – 55.28%
- Maine – 53.18%
Top 5 Lowest % Change 2014-2024
- Nevada – 6.19%
- Utah – 10.61%
- Hawaii – 13.66%
- Florida – 14.72%
- Mississippi – 14.93%
Top 5 Highest Avg % Change
- California – 6.78%
- Massachusetts – 5.58%
- West Virginia – 5.27%
- Maine – 5.08%
- Rhode Island – 4.69%
Top 5 Lowest Avg % Change
- Utah – 1.05%
- Nevada – 1.24%
- Mississippi – 1.49%
- Florida – 1.66%
- Delaware – 1.82%
Below, you’ll find a state-by-state breakdown of utility rate increases and notable data points for each.
Alabama
- Average Electric Rate 2014: 11.48 cents/kWh
- Average Electric Rate August 2024: 14.87 cents/kWh
- Overall Change: 29.53%
- Average Yearly Change: 2.67%
Alaska
- Average Electric Rate 2014: 19.14 cents/kWh
- Average Electric Rate August 2024: 28.19 cents/kWh
- Overall Change: 47.28%
- Average Yearly Change: 4.06%
Arizona
- Average Electric Rate 2014: 11.90 cents/kWh
- Average Electric Rate August 2024: 14.85 cents/kWh
- Overall Change: 24.79%
- Average Yearly Change: 2.28%
Arkansas
- Average Electric Rate 2014: 9.51 cents/kWh
- Average Electric Rate August 2024: 12.47 cents/kWh
- Overall Change: 31.13%
- Average Yearly Change: 2.81%
California
California has experienced the highest overall increase in residential electric utility rates over the past decade, with a staggering 91.08% rise from 2014 to August 2024. California rate increases have been incredibly high going all the way back to 1990. This equates to an average yearly increase of 6.78%, significantly surpassing the national average of 2.89%.
- Average Electric Rate 2014: 16.25 cents/kWh
- Average Electric Rate August 2024: 31.05 cents/kWh
- Overall Change: 91.08%
- Average Yearly Change: 6.78%
Colorado
- Average Electric Rate 2014: 12.18 cents/kWh
- Average Electric Rate August 2024: 15.65 cents/kWh
- Overall Change: 28.49%
- Average Yearly Change: 2.60%
Connecticut
- Average Electric Rate 2014: 19.75 cents/kWh
- Average Electric Rate August 2024: 29.93 cents/kWh
- Overall Change: 51.54%
- Average Yearly Change: 4.49%
Delaware
- Average Electric Rate 2014: 13.29 cents/kWh
- Average Electric Rate August 2024: 15.68 cents/kWh
- Overall Change: 17.98%
- Average Yearly Change: 1.82%
Florida
- Average Electric Rate 2014: 11.89 cents/kWh
- Average Electric Rate August 2024: 13.64 cents/kWh
- Overall Change: 14.72%
- Average Yearly Change: 1.66%
Georgia
- Average Electric Rate 2014: 11.65 cents/kWh
- Average Electric Rate August 2024: 14.90 cents/kWh
- Overall Change: 27.90%
- Average Yearly Change: 2.57%
Hawaii
- Average Electric Rate 2014: 37.04 cents/kWh
- Average Electric Rate August 2024: 42.10 cents/kWh
- Overall Change: 13.66%
- Average Yearly Change: 2.03%
Idaho
- Average Electric Rate 2014: 9.72 cents/kWh
- Average Electric Rate August 2024: 12.12 cents/kWh
- Overall Change: 24.69%
- Average Yearly Change: 2.28%
Illinois
- Average Electric Rate 2014: 11.91 cents/kWh
- Average Electric Rate August 2024: 15.77 cents/kWh
- Overall Change: 32.42%
- Average Yearly Change: 2.98%
Indiana
- Average Electric Rate 2014: 11.46 cents/kWh
- Average Electric Rate August 2024: 14.87 cents/kWh
- Overall Change: 29.76%
- Average Yearly Change: 2.67%
Iowa
- Average Electric Rate 2014: 11.16 cents/kWh
- Average Electric Rate August 2024: 14.87 cents/kWh
- Overall Change: 33.24%
- Average Yearly Change: 2.96%
Kansas
- Average Electric Rate 2014: 12.17 cents/kWh
- Average Electric Rate August 2024: 14.56 cents/kWh
- Overall Change: 19.64%
- Average Yearly Change: 1.90%
Kentucky
- Average Electric Rate 2014: 10.16 cents/kWh
- Average Electric Rate August 2024: 12.68 cents/kWh
- Overall Change: 24.80%
- Average Yearly Change: 2.32%
Louisiana
- Average Electric Rate 2014: 9.57 cents/kWh
- Average Electric Rate August 2024: 11.57 cents/kWh
- Overall Change: 20.90%
- Average Yearly Change: 2.20%
Maine
Maine rounds out the top five highest percent change of utility rate at 53.18%. Maine’s 5.08% average yearly change is greatly affected by significant changes since 2021. Prior to the that, Maine’s yearly change peaked at 6.24% and was often below 2.5%.
- Average Electric Rate 2014: 15.27 cents/kWh
- Average Electric Rate August 2024: 23.39 cents/kWh
- Overall Change: 53.18%
- Average Yearly Change: 5.08%
Maryland
- Average Electric Rate 2014: 13.63 cents/kWh
- Average Electric Rate August 2024: 17.84 cents/kWh
- Overall Change: 30.89%
- Average Yearly Change: 2.89%
Massachusetts
Massachusetts ranks as the number two state for highest utility rate percent increase over the last decade at 69.18%. Given the ups and downs the average yearly change is 5.58%, nearly double the national average.
- Average Electric Rate 2014: 17.39 cents/kWh
- Average Electric Rate August 2024: 29.42 cents/kWh
- Overall Change: 69.18%
- Average Yearly Change: 5.58%
Michigan
- Average Electric Rate 2014: 14.46 cents/kWh
- Average Electric Rate August 2024: 19.67 cents/kWh
- Overall Change: 36.03%
- Average Yearly Change: 3.15%
Minnesota
- Average Electric Rate 2014: 12.01 cents/kWh
- Average Electric Rate August 2024: 16.33 cents/kWh
- Overall Change: 35.97%
- Average Yearly Change: 3.17%
Mississippi
- Average Electric Rate 2014: 11.32 cents/kWh
- Average Electric Rate August 2024: 13.01 cents/kWh
- Overall Change: 14.93%
- Average Yearly Change: 1.49%
Missouri
- Average Electric Rate 2014: 10.64 cents/kWh
- Average Electric Rate August 2024: 14.83 cents/kWh
- Overall Change: 39.38%
- Average Yearly Change: 3.52%
Montana
- Average Electric Rate 2014: 10.18 cents/kWh
- Average Electric Rate August 2024: 13.32 cents/kWh
- Overall Change: 30.84%
- Average Yearly Change: 2.79%
Nebraska
- Average Electric Rate 2014: 10.40 cents/kWh
- Average Electric Rate August 2024: 12.52 cents/kWh
- Overall Change: 20.38%
- Average Yearly Change: 1.94%
Nevada
- Average Electric Rate 2014: 12.93 cents/kWh
- Average Electric Rate August 2024: 13.73 cents/kWh
- Overall Change: 6.19%
- Average Yearly Change: 1.24%
New Hampshire
- Average Electric Rate 2014: 17.53 cents/kWh
- Average Electric Rate August 2024: 22.86 cents/kWh
- Overall Change: 30.41%
- Average Yearly Change: 3.30%
New Jersey
- Average Electric Rate 2014: 15.78 cents/kWh
- Average Electric Rate August 2024: 20.67 cents/kWh
- Overall Change: 30.99%
- Average Yearly Change: 2.85%
New Mexico
- Average Electric Rate 2014: 12.28 cents/kWh
- Average Electric Rate August 2024: 15.26 cents/kWh
- Overall Change: 24.27%
- Average Yearly Change: 2.27%
New York
- Average Electric Rate 2014: 20.07 cents/kWh
- Average Electric Rate August 2024: 25.21 cents/kWh
- Overall Change: 25.61%
- Average Yearly Change: 2.52%
North Carolina
- Average Electric Rate 2014: 11.10 cents/kWh
- Average Electric Rate August 2024: 14.19 cents/kWh
- Overall Change: 27.84%
- Average Yearly Change: 2.57%
North Dakota
- Average Electric Rate 2014: 9.15 cents/kWh
- Average Electric Rate August 2024: 12.70 cents/kWh
- Overall Change: 38.80%
- Average Yearly Change: 3.42%
Ohio
- Average Electric Rate 2014: 12.50 cents/kWh
- Average Electric Rate August 2024: 15.82 cents/kWh
- Overall Change: 26.56%
- Average Yearly Change: 2.47%
Oklahoma
- Average Electric Rate 2014: 10.03 cents/kWh
- Average Electric Rate August 2024: 12.92 cents/kWh
- Overall Change: 28.81%
- Average Yearly Change: 2.69%
Oregon
- Average Electric Rate 2014: 10.47 cents/kWh
- Average Electric Rate August 2024: 14.89 cents/kWh
- Overall Change: 42.22%
- Average Yearly Change: 3.72%
Pennsylvania
- Average Electric Rate 2014: 13.32 cents/kWh
- Average Electric Rate August 2024: 17.57 cents/kWh
- Overall Change: 31.91%
- Average Yearly Change: 2.98%
Rhode Island
Rhode Island has the fourth highest utility rate percent change in the country at 55.27% from 2014-2024. The average yearly change at 4.69% falls into the usual escalation rates quoted by solar installers.
- Average Electric Rate 2014: 17.17 cents/kWh
- Average Electric Rate August 2024: 26.66 cents/kWh
- Overall Change: 55.27%
- Average Yearly Change: 4.69%
South Carolina
- Average Electric Rate 2014: 12.45 cents/kWh
- Average Electric Rate August 2024: 14.62 cents/kWh
- Overall Change: 17.43%
- Average Yearly Change: 1.67%
South Dakota
- Average Electric Rate 2014: 10.47 cents/kWh
- Average Electric Rate August 2024: 13.85 cents/kWh
- Overall Change: 32.28%
- Average Yearly Change: 2.91%
Tennessee
- Average Electric Rate 2014: 10.32 cents/kWh
- Average Electric Rate August 2024: 12.45 cents/kWh
- Overall Change: 20.64%
- Average Yearly Change: 1.94%
Texas
- Average Electric Rate 2014: 11.86 cents/kWh
- Average Electric Rate August 2024: 14.83 cents/kWh
- Overall Change: 25.04%
- Average Yearly Change: 2.37%
Utah
- Average Electric Rate 2014: 10.65 cents/kWh
- Average Electric Rate August 2024: 11.78 cents/kWh
- Overall Change: 10.61%
- Average Yearly Change: 1.05%
Vermont
- Average Electric Rate 2014: 17.47 cents/kWh
- Average Electric Rate August 2024: 21.40 cents/kWh
- Overall Change: 22.50%
- Average Yearly Change: 2.11%
Virginia
- Average Electric Rate 2014: 11.10 cents/kWh
- Average Electric Rate August 2024: 14.40 cents/kWh
- Overall Change: 29.73%
- Average Yearly Change: 2.70%
Washington
- Average Electric Rate 2014: 8.67 cents/kWh
- Average Electric Rate August 2024: 12.21 cents/kWh
- Overall Change: 40.83%
- Average Yearly Change: 3.53%
West Virginia
West Virginia ranks as the third highest percentage change in the US. at a 65.31% increase over the last 10 years, West Virginia’s utility rate has experience a wide variety of year increases, even seeing a decrease from 2017-2018. The average utility rate increase per year in West Virginia is 5.27%.
- Average Electric Rate 2014: 9.34 cents/kWh
- Average Electric Rate August 2024: 15.44 cents/kWh
- Overall Change: 65.31%
- Average Yearly Change: 5.27%
Wisconsin
- Average Electric Rate 2014: 13.67 cents/kWh
- Average Electric Rate August 2024: 17.57 cents/kWh
- Overall Change: 28.53%
- Average Yearly Change: 2.59%
Wyoming
- Average Electric Rate 2014: 10.50 cents/kWh
- Average Electric Rate August 2024: 13.81 cents/kWh
- Overall Change: 31.52%
- Average Yearly Change: 2.95%
Using This Information
As the country’s energy demands continue to increase we’ll undoubtedly see continued increases like these going forward. But this information is incredibly useful for any homeowner or solar contractor looking to add trusted information to their value analysis.
You can find all this information and more at the EIA’s open data resource.
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