Short answer: the average US household electricity price is about 17.3 cents per kWh in 2025 and is forecast to reach about 18.2 cents in 2026 and 18.7 in 2027, according to the EIA. For a home using 900 kWh a month, that is roughly $100 more a year.
The numbers
| Year | Average price (cents/kWh) | Cost for 900 kWh/month |
|---|---|---|
| 2025 | 17.3 | about $156 |
| 2026 (forecast) | 18.2 | about $164 |
| 2027 (forecast) | 18.7 | about $168 |
Your bill will differ: prices vary widely between states and utilities, and your usage matters as much as the rate.
Why prices keep rising
- Grid spending: utilities are replacing aging lines and hardening systems against storms and wildfire, and they recover those costs through rates.
- Demand growth: new load from data centers, electrification and air conditioning means more generation and transmission must be built.
- Fuel costs: natural gas prices feed directly into electricity prices in many regions.
- Extreme weather: repairs and emergency purchases show up in bills later.
The mix of these factors differs by region, so check your own utility’s rate filings and notices.
What you can do about it
- Read your bill. Separate usage charges (per kWh) from fixed fees so you know what you can control.
- Ask about time-of-use or EV plans. Shifting laundry, dishwashing and EV charging to cheap hours can cut costs noticeably if your utility offers them.
- Go after the big loads first. Heating, cooling and water heating usually make up well over half of a home’s electricity use.
- Check for rebates. Many state and utility programs cover heat pumps, insulation and efficient appliances even though the federal credits ended.
- Consider solar or storage only if the numbers work for your rate; see our guide to solar panel costs.
- If your state allows supplier choice, compare offers carefully and watch for variable rates and cancellation fees.
FAQ
Why is my bill higher than the national average suggests? Your state, season, home size, and heating fuel all matter. A winter bill with electric heat can be several times a summer one.
Will prices come down? Forecasters expect modest increases through 2027, but regional spikes are possible.
Forecasts are subject to revision. Figures are national averages.