The average cost of electricity for households in the United States is approximately $0.12 to $0.15 per kilowatt-hour (kWh). This range varies significantly depending on location, energy source, and utility provider.

The cost per kWh is influenced by multiple factors. First, the U.S. Energy Information Administration (EIA) reports that the national average retail price for electricity was $0.127 per kWh in March 2023, with regional disparities. States like Texas and Louisiana typically have lower rates due to extensive natural gas infrastructure and deregulated markets, averaging $0.08 to $0.10 per kWh. Conversely, Hawaii and Alaska face higher costs, exceeding $0.20 per kWh, driven by high transmission costs and reliance on imported fuels. Second, energy mix plays a critical role. States with significant renewable energy adoption, such as California (wind and solar), often see slightly higher rates due to infrastructure investments and policy mandates. Third, utility rates include fixed charges and variable pricing, which can increase costs for low-income households. According to the EIA, residential electricity prices have risen by 15% since 2015, partly due to inflation and investments in grid modernization. Additionally, federal and state policies, such as tax credits for renewable projects, affect long-term pricing trends. For example, the Inflation Reduction Act of 2022 allocated billions to clean energy, potentially lowering future costs in renewable-heavy regions. In summary, electricity costs reflect a complex interplay of regional infrastructure, energy policy, and market dynamics, with national averages clustered between $0.12 and $0.15 per kWh.