Electricity Costs Across the United States

Here’s how residential electricity rates compare across the U.S. in 2026 (in cents per kilowatt-hour):

• Highest electricity costs

  • Hawaii: ~39.7¢/kWh

  • California: ~33.6¢/kWh

  • Connecticut & Massachusetts: ~27–31¢/kWh

    
    

• Lowest electricity costs

  • Nevada: ~12¢/kWh

  • Louisiana: ~12¢/kWh

  • Idaho: ~12–13¢/kWh

  • Tennessee & Kentucky: ~13¢–14¢/kWh

    
    

• National average: ~18¢/kWh — a roughly 5% increase compared to last year.

This means that depending on where you live, electricity bills can vary dramatically, sometimes by more than three-fold from one state to the next.

Source: ElectricChoice.com, “Electricity Rates by State — Updated January 2026,” ElectricChoice.com (accessed Feb. 2026).

What’s Driving Electricity Cost Increases?

Several factors are pushing electricity rates higher nationwide:

• Rising operational and infrastructure costs — utilities are investing in grid upgrades while demand grows.

  
  

• Fossil fuel price volatility — especially in states that depend on oil and gas.

  
  

• Policy changes affecting clean energy incentives — could increase costs without renewable subsidies.

  
  

In some states, even utilities are increasing rates year over year as part of approved rate plans, adding further pressure to household budgets.

How Axiom Energy EcoPrime microCHP Systems Can Help Reduce Costs

Micro-cogeneration (microCHP) generates electricity and useful heat simultaneously right at the building — whether it’s a home, apartment complex, or commercial space.

Key benefits include:

• 🔋 Lower energy bills: Because microCHP produces power on-site, buildings buy less electricity from the grid — which means savings, especially in high-cost states.

  
  

• ♨️ Better overall efficiency: MicroCHP systems can exceed 90% efficiency by capturing heat that would otherwise be wasted.

  
  

• 🌍 Reduced carbon emissions: Less reliance on grid power and more efficient fuel use can cut emissions up to ~30%.

  
  

• 🔄 Faster ROI: Uses existing natural gas or propane, and in some cases qualifies for rebates or incentives that further improve cost savings.

  
  

Case-in-Point: Benefits in Action

• Multi-family buildings, like apartment complexes, have reported significant reductions in energy bills after installing microCHP units.

  
  

• The ability to generate electricity onsite is especially valuable in states with high electricity rates where every cent saved per kWh adds up quickly.

  
  

Conclusion

Electricity costs in 2026 vary widely from state to state — ranging from around 12¢/kWh in the lowest states to nearly 40¢/kWh in the highest. With energy prices rising due to infrastructure and market pressures, finding ways to reduce dependence on the grid is more important than ever.

Axiom microCHP systems offer a promising solution for both homeowners and commercial property owners by generating power and heat more efficiently and reducing overall energy expenses, especially in high-cost regions.

If you’re looking for ways to manage electricity costs long-term, considering a microCHP system might be a smart part of your energy strategy.