States Where You’ll Pay the Most—and Least—on Your Electric Bill
Americans are feeling the pinch across the board, from groceries and entertainment to skyrocketing electric bills.
The average electric bill in the U.S. is about $137 per month—an amount that can vary significantly month by month, according to a recent study by MarketWatch.
In Titusvill, FL, novelist Michael Allen complains that he’s “floored” every time he opens a bill that’s higher than usual.
“I typically pay nearly $200 a month for 1,200 square feet,” he tells Realtor.com®. “The sad part is, I don’t ever see the electric bill coming back down. The price of living is getting too high, and the electric company wants every dime they can get out of us.”
Allen says he recently enrolled in “average billing,” which takes a household’s average annual energy usage and divides it into 12 equal monthly payments.
Now, he receives receives a monthly electric bill that’s the same amount each month—but it’s still way too high, in his opinion.
“Utility bills are like the secret sauce no one talks about—they can make or break the deal,” says real estate agent and investor Ron Myers, president of Ron Buys Florida Homes. “A home with high energy bills can scare buyers away faster than a bad inspection.”
On the flip side, Myers says energy-efficient homes with features such as solar panels, new HVACs, or tight insulation are total game changers. “Buyers want value, and if they can save money every month, it’s a win.”
Below are the states with the highest and lowest electric bills, plus energy-saving tips to help you save on your own bill.
Top 5 states with lowest electric bills
1. Utah
Median listing price: $576,995
Average electric bill: $85
2. New Mexico
Median listing price: $375,318
Average electric bill: $91
3. Idaho
Median listing price: $540,000
Average electric bill: $107
4. District of Columbia
Median listing price: $599,000
Average electric bill: $104
5. Illinois
Median listing price: $299,000
Average electric bill: $105
Top 5 states with highest electric bills
1. Hawaii
Median listing price: $795,900
Average electric bill: $213
2. Connecticut
Median listing price: $439,900
Average electric bill: $203
3. Florida
Median listing price: $425,000
Average electric bill: $168
4. New Hampshire
Median listing price: $549,000
Average electric bill: $169
5. Massachusetts
Median listing price: $699,900
Average electric bill: $166
Smart ways to slash your electric bill
When Richard Robbins of Murfreesboro, TN, got a $1,000 electric bill in July—almost double the usual amount—he and his wife immediately got an energy audit to see what the problem was. (Most electric companies offer energy audits free of charge.)
“We had left an old, inefficient freezer plugged in outside for my son to use for ice baths,” says Robbins, the co-founder of an athletic-wear company. “The lid wouldn’t seal tight on it, and we discovered it was sucking electricity for an entire month. The freezer we had received as a free, hand-me-down gift from my parents ended up costing us dearly.”
Improving insulation could trim your utility bills by up to 20 percent, according to the Energy Department.
Here are six more energy-saving (and money-saving) tips from Mark Woodruff, senior product manager at Trane Technologies.
- Maintain and upgrade your HVAC system, since an aging system can be surprisingly inefficient.
- Change your air filters every 30 to 90 days so your HVAC system won’t have to work harder to heat or cool your home.
- Buy a tube of caulk at your local hardware store to seal those small gaps around door and window frames, and purchase weatherstripping for larger gaps.
- Consult an insulation professional to see if your insulation is up-to-date or if it needs to be needs to be replaced. Improving insulation could reduce your utility bills by up to 20%.
- Unplug “vampire appliances” that draw energy from electrical outlets when they’re turned off or in standby mode.
- Install a smart thermostat, which will allow you to manage your home’s heating and cooling remotely from a smartphone, tablet, or desktop to cut costs.
Solar energy: Pros and pitfalls
Families succumbing to inflation can get a break on their electric bills by installing solar panels, according to Ben Airth, policy director at residential solar installation company Freedom Forever.
“This is important because it provides a lowered and predictable monthly expense families can budget around and creates more disposable income for families,” he says.
Yet, installing solar panels can be costly.
The average price ranges from $13,620 to $26,686, and it usually takes six to 12 years for the investment to break even.
However, solar panels can increase your home’s resale value.
“Owned solar panels on a home are a huge selling point, especially on a resale, when the seller has already gone through the hassle of having them installed and paid for them,” says Cara Ameer, a real estate agent with Coldwell Banker in Los Angeles.
But if you’re not ready to commit to the upfront costs, you can opt for community solar—available in many states and open to both renters and homeowners.
“This allows renters and homeowners to simply subscribe to a local solar farm and receive discounts on their electricity bill,” says Bruce Stewart, CEO and president of community solar servicer Perch Energy. “It’s free to participate in and can save you between 5% to 20% per year.”
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