Electricity Retail Price of the United States Households by State in 2024

American household electricity prices have indeed risen steadily over the years. Hawaiian homes pay the highest electricity prices in the United States. As of September 2024, Hawaii households spent an average of 41.27 cents per kilowatt-hour. California follows in second place, with prices at 30.22 cents per kilowatt-hour. On the other hand, Utah has the lowest rate, around 11.4 cents per kilowatt-hour.

Hawaii gets about 80% of its electricity from fossil fuels, mainly oil. This means that electricity prices in the state depend a lot on oil prices in the country. Oil is the most expensive fossil fuel used to generate electricity in the United States. Since Hawaii imports oil, we also have to consider the costs of transportation and infrastructure when looking at overall oil prices.

On the other hand, Utah has the lowest electricity prices because it has plenty of local energy resources and a variety of power sources. The state mainly uses inexpensive fossil fuels like coal and natural gas, which made up about 80% of Utah’s electricity generation in 2023. Coal has been Utah’s primary electricity source, but its use is declining as natural gas and renewable energy increase. Solar power, in particular, has quickly increased; it alone accounted for 93% of the new electric capacity added since 2015. By 2023, renewable energy sources made up about 15-20% of Utah’s electricity generation, with contributions from wind, hydro, and geothermal energy as well.