Which States Have the Highest Electricity Rates in 2026?

5 min read • Updated May 2026 • By the CliQ Team — hardware veterans from Blink Security Cameras

The states with the highest residential electricity rates in 2026 are Hawaii (43.00¢/kWh), California (33.22¢/kWh), Maine (32.17¢/kWh), Connecticut (30.77¢/kWh), and Massachusetts (30.46¢/kWh) — all paying more than 30 cents per kilowatthour, nearly double the U.S. average of 17.65¢. If you live in one of these states, a smart thermostat pays for itself faster than almost anywhere else in the country.

*Based on national average H&C electricity consumption (~5,600 kWh/year per EIA RECS). Actual results vary by home size, climate zone, and usage. Savings rate per U.S. Department of Energy.

In this article

The Rankings: Top 10 Most Expensive States for Electricity

The data above comes from the U.S. Energy Information Administration's Electric Power Monthly (Table 5.6.A, February 2026). These are residential rates — what homeowners actually pay per kilowatthour, not commercial or industrial customers.

Hawaii is in a league of its own at 43.00¢/kWh. The state runs on an isolated island grid largely powered by imported oil, which drives costs to more than twice the national average.

California is second at 33.22¢/kWh — and unlike Hawaii, it's not an island. The state's high rates reflect a combination of grid infrastructure investment, wildfire mitigation costs, and a major ongoing energy transition. Three years ago, California was closer to 25¢. It's moved fast.

Maine, Connecticut, Massachusetts, New York, and Rhode Island round out the top seven, all above 29¢. New England's grid relies heavily on natural gas — a fuel that's gotten more expensive and more volatile since 2021. When gas prices spike, electricity bills follow.

New Hampshire (26.52¢), Alaska (25.79¢), and the District of Columbia (23.97¢) complete the top 10. Alaska, like Hawaii, runs on an isolated grid with high fuel transport costs.

Why Rates Vary So Much by State

Electricity rates aren't set by the market — they're regulated, and the formula is different in every state. A few factors drive most of the variation.

Fuel mix. States that rely on cheap hydro or low-cost generation sources (Idaho: 12.63¢, Washington: 14.11¢) pay far less than states tied to natural gas. New England is particularly exposed because its grid is gas-heavy and its pipeline capacity is constrained — meaning prices spike hard every winter.

Infrastructure investment. California's utilities have spent billions on wildfire mitigation, grid hardening, and renewables buildout. Connecticut and Massachusetts are similarly mid-transition, funding offshore wind and solar while still maintaining older infrastructure. Those costs get passed to ratepayers.

Isolation. Hawaii and Alaska can't import power from neighboring states. They generate nearly everything locally, at whatever it costs to get fuel there.

Market structure. Some states deregulate their electricity markets (Texas, Illinois, New York). Others use traditional regulated utility monopolies. Neither model consistently produces lower bills — it depends more on the fuel mix and infrastructure than the market structure.

The national average residential rate in February 2026 was 17.65¢/kWh, up from 16.5¢ in 2024. U.S. electricity prices have risen nearly 30% since 2019.

What High Rates Actually Mean for Your Bill

The rate matters, but it's multiplied by how much you use. According to the EIA's Residential Energy Consumption Survey, heating and cooling accounts for roughly 52% of a typical home's electricity use — the single largest category by far.

At California's rate of 33.22¢/kWh, a home using the national average of about 5,600 kWh per year on heating and cooling spends roughly $1,860 annually on H&C alone. At the national average rate, that same usage costs $988.

That gap — nearly $900/year — is why energy efficiency decisions look so different depending on where you live. A product that saves 10% of your heating and cooling bill saves $99/year in Iowa and $186/year in California. Same product. Very different math.

What To Do If You Live in a High-Rate State

The first lever most homeowners can control is their thermostat. The U.S. Department of Energy estimates that adjusting your thermostat by 7–10°F for 8 hours per day can cut heating and cooling costs by up to 10%. A smart thermostat automates that adjustment — so you don't think about it and it happens every day.

If you're in a high-rate state and still on a basic programmable thermostat — or no schedule at all — you're almost certainly leaving money on the table every month.

The payback figures in the table above are based on the DOE's verified 10% savings rate applied to national average H&C consumption at each state's current electricity rate. CliQ costs $69.99. In California, you recover that in roughly 4–5 months. In Connecticut or Massachusetts, same story. At the national average rate, you're looking at closer to 8–9 months.

One important note: the table uses national average H&C consumption, not state-specific usage patterns. Northern states tend to use more heating energy; southern states more cooling. Actual results vary — but the directional comparison holds. High-rate states win on payback period, consistently.

For more on how the savings math works: How Much Can a Smart Thermostat Actually Save You? →

See CliQ →
One thermostat. No C-wire required. No electrician. Ships to all 50 states.

Frequently Asked Questions

Which state has the highest electricity rate in 2026?
Hawaii has the highest residential electricity rate in the U.S. at 43.00¢/kWh as of February 2026, according to the U.S. Energy Information Administration. California is second at 33.22¢/kWh. Both states pay more than double the national average of 17.65¢.

Why is electricity so expensive in California?
California's high rates reflect several compounding factors: billions spent on wildfire mitigation and grid hardening, major investment in renewable energy infrastructure, and the ongoing transition away from fossil fuels. The state's residential rate has climbed from roughly 25¢/kWh to over 33¢/kWh in the last three years.

How fast does a smart thermostat pay for itself in a high-rate state?
In California or Connecticut, a $69.99 smart thermostat like CliQ can pay for itself in under 5 months, based on the DOE's estimated 10% savings rate applied to national average heating and cooling energy use. At the national average electricity rate, the payback period is closer to 8–9 months.

Does where I live affect how much a smart thermostat saves me?
Yes, significantly. Savings from a smart thermostat depend on how much you pay per kilowatthour and how much energy you use for heating and cooling. Homeowners in high-rate states like Hawaii, California, and the New England states save more in dollar terms than homeowners in low-rate states, even when the percentage savings are similar.

What is the average residential electricity rate in the U.S. in 2026?
The U.S. average residential electricity rate was 17.65¢/kWh in February 2026, according to EIA's Electric Power Monthly (Table 5.6.A). The annual average for 2025 was 17.30¢/kWh. Rates have risen nearly 30% since 2019.

Prices verified as of May 2026. Check retailer links for current pricing.

Sources
U.S. Energy Information Administration. Electric Power Monthly, Table 5.6.A — Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, February 2026.
U.S. Energy Information Administration. Residential Energy Consumption Survey (RECS) 2020 — Use of Energy in U.S. Homes.
U.S. Department of Energy. Energy Saver — Thermostats.
U.S. Energy Information Administration. Electric Power Monthly, Table 5.3 — Residential electricity prices 2019–2025.