Hawaii is the state with the highest household electricity price in the United States. In September 2023, the average retail price of electricity for Hawaiian residences amounted to 42.69 U.S. cents per kilowatt-hour. Rhode Island followed in second, with 31.8 U.S. cents per kilowatt-hour. Meanwhile, Washington and Utah registered the lowest prices in the period, at around 18 U.S. cents per kilowatt-hour.
Why is electricity so expensive in Hawaii?
Fossil fuels, and specifically oil, account for approximately 80 percent of Hawaii’s electricity mix, so the electricity price in this state can be roughly brought down to the price of oil in the country. In 2022, oil was the most expensive fossil fuel used for electricity generation in the U.S.. As Hawaii depends on oil imports, the cost of transportation and infrastructure must be added to the oil price.
Electricity prices worldwide
The U.S. retail price for electricity increased almost every year since 1990. In 2022, it stood at 12.5 U.S. cents per kilowatt-hour, almost double the charge put on electricity back in 1990. Nevertheless, the U.S. still has some of the lowest household electricity prices worldwide, particularly when compared to European countries reliant on energy imports.