U.S. residential retail price of electricity 2022, by state

Hawaii is the U.S. state with the highest household electricity price. In September 2022, the average retail price of electricity for Hawaiian residences amounted to roughly 45 U.S. cents per kilowatt-hour. New Hampshire followed in second, with 30.4 U.S. cents per kilowatt-hour. Meanwhile, Utah and Washington registered the lowest prices in the period, at around 11 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 U.S.. In 2021, oil was the most expensive fossil fuel used for electricity generation in the U.S.. The cost of transportation –Hawaii depends on oil imports- and infrastructure must be added to the oil price.

Electricity prices worldwide

The U.S. retail price for electricity increased in almost every year since 1990. In 2021, it stood at 11.18 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 or with renewables surcharges.