Electricity Rates by State in 2026: The Complete 50-State Guide

50-State & DC Electricity Rate Comparison

The table below ranks all 50 states plus DC by residential electricity rate, derived at build time from our state solar data file (sourced from SEIA, EIA, and DSIRE, last updated 2026-07-27). Click any column header to sort - click again to reverse direction. The "vs National Avg" column shows how each state compares to the 18.44¢/kWh US average, and the "Solar Payback" column shows years to breakeven on an owned solar system without federal credit (the post-OBBBA reality after Section 25D expired January 1, 2026).

10 Highest Electricity Rate States in 2026

These ten states have the most expensive residential electricity in the nation - and not coincidentally, the fastest solar payback periods. For homeowners in these states, every kWh of solar generation displaces utility power priced well above the national average, which compounds into breakeven in under a decade even without any federal tax credit.

10 Lowest Electricity Rate States in 2026

These ten states have the cheapest residential electricity - all under 15¢/kWh. Low rates stretch solar payback past the national average, but high sun hours can rescue the economics. Nevada (14.29¢/kWh, 6+ peak sun hours) and Utah (13.29¢/kWh, 5.4 peak sun hours) still achieve payback under 15 years despite cheap utility power. The tougher cases are low-rate states with weak sun (North Dakota, Idaho, Montana), where payback stretches past 16 years and net-metering policy becomes decisive.

The Inverse Correlation: Rate vs Solar Payback

The single most important chart in solar economics is the one you don't usually see: the relationship between a state's electricity rate and its solar payback period. It is strongly inverse - high rates produce fast payback, low rates produce slow payback. The contrast between the two extremes tells the whole story.

The 5x gap in rate produces roughly a 5x gap in payback. This is why "is solar worth it?" has no national answer - it has 51 different answers, one per state plus DC, and the largest single variable is the price you currently pay per kWh. To model your exact roof, rate, and system size, run the Solar ROI Calculator and the System Size Calculator.

What Drives Electricity Rates by State

Why does Hawaii pay 46¢/kWh while North Dakota pays 12¢? Four structural factors explain most of the variance between states.

1. Generation mix

The cheapest electricity in the country comes from states with abundant low-cost generation. Hydropower dominates the Pacific Northwest (Washington, Oregon, Idaho). Coal and wind anchor the Plains states (North Dakota, Wyoming, Nebraska). Nuclear-heavy states (Illinois, Pennsylvania) sit near the average. At the expensive end, states dependent on imported fuel oil and LNG (Hawaii, Alaska, New England) pay a premium for every BTU shipped in.

2. Fuel and transmission costs

Even within the same fuel type, transportation costs matter. Natural gas pipelines reach the Marcellus Shale cheaply in Pennsylvania, but New England sits at the end of the pipeline network and pays more for the same fuel. Island grids (Hawaii) and remote grids (Alaska) absorb full shipping costs on every fuel delivery. Transmission infrastructure age also drives rates - older grids need more maintenance per kWh delivered.

3. Regulated vs deregulated markets

About two-thirds of US electricity customers live in states with some form of retail choice (deregulation), where competing suppliers bid for generation. The other third are served by vertically integrated regulated utilities where a public utility commission sets rates. Deregulated states (Texas, Pennsylvania, New York, most of New England) tend to have more volatile rates that track wholesale markets; regulated states (Southeast, much of the West) have stabler but sometimes higher rates. Neither is uniformly cheaper.

4. Time-of-use and net-metering policy

An increasing share of residential rates include time-of-use (TOU) pricing - higher per-kWh charges during peak hours (typically 4-9 PM) and lower off-peak rates. California's rates are heavily TOU-structured. TOU matters for solar economics because peak hours often align with late afternoon, when solar production is ramping down - which is why batteries increasingly pair with solar in TOU markets. Net-metering policy (how your utility credits your exported solar kWh) is the other decisive variable, and you can explore it state-by-state with our NEM Policy Tracker.

How Electricity Rates Affect Solar Savings

Solar savings are calculated as: annual production (kWh) × rate ($/kWh). Notice that the rate multiplies directly into the savings - which is why a state with high rates and modest sun (Massachusetts, New York) can out-save a state with low rates and abundant sun (Nevada, Utah) on an absolute dollar basis.

Concretely, an 8 kW system in Hawaii producing ~12,000 kWh/year saves roughly $7,835/yearat the state's 52.00¢ rate, while the same 8 kW system in North Dakota saves only $1,954/yearat 14.15¢. The production numbers are similar - the savings gap is almost entirely the rate.

This is also why every additional cent per kWh of rate works in your favor with solar. A utility rate hike that costs your neighbor $200/year in higher bills increases your solar savings by the same amount - solar acts as a hedge against rate inflation. The Energy Bill Analyzer can show you exactly how much of your current bill is generation vs transmission vs delivery, so you know which component solar actually displaces.

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