The average electricity bill is becoming a central concern in household budgets. As we enter 2025, homeowners across the U.S. are watching their utility bills climb. This increase is not random. It is tied to the ongoing transition to renewable energy, upgrades to aging infrastructure, and extreme weather events, causing surges in demand. 

But behind every high bill is a pattern, and once you understand it, you can change it. This guide will tell you how to break that pattern with smart strategies and solutions like Jackery solar backup generators. 

Why Are Electricity Costs Rising?

Several core factors are behind the increasing average electricity bill this year:

Renewable Energy Transition

In 2024, wind and solar accounted for a record 17% of U.S. electricity generation (757TWh), surpassing coal’s 15% (653TWh) for the first time.^[1] This is a dramatic shift from 2018, when coal generated three times more than both combined. This clean energy surge demands new infrastructure, leading utilities to pass higher upfront costs onto consumers through increased average electricity bills. 

Grid Maintenance 

America’s power grid is aging and needs constant repair and modernization, especially as more renewable sources are added. 

Climate-related Demand Spikes

With record-breaking summers and winters, heating and cooling demands are pushing residential usage higher than ever. 

These factors collectively impact the average electricity bill, especially the average electric bill in summer, making it important for homeowners to stay informed and proactive in managing their energy consumption.

Average Electricity Bills in 2025

So, what is the average electricity bill in 2025? According to recent projections from the U.S Energy Information Administration (EIA), American households are expected to pay around $154 per month. This estimate is calculated using an average residential electricity rate of 17.5 cents per kilowatt hour and a typical monthly consumption of 881 kWh.^[2] 

It is important to note that this number reflects variable energy use and does not include fixed service or delivery fees, which can add several dollars more to your final monthly bill. 

Regional Variations 

The United States has many different climates, policies, and power systems, so it is no surprise that electricity costs vary widely from place to place. Hawaii leads the nation with the highest average electricity bill, around $219 per month, due to its reliance on imported energy and limited grid capacity. In contrast, energy-efficient Utah enjoys one of the lowest averages, at just $89 monthly.^[3] 

Rates across the U.S. can range from eleven cents to over forty cents per kWh, influenced by local energy sources, consumption patterns, and even political decisions. 

• Southern states: Southern states often show high usage, sometimes well over 1,000 kWh per month, due to heavy air conditioning demands.
• Northeast states: Winter heating can significantly raise costs here, especially for homes using electric heat. 
• Milder coastal states: Milder coastal regions tend to consume less, often below 600 kWh.

It is important to note that the average electricity bill serves more as a general benchmark than a precise predictor of your own costs. Your actual bill may vary based on location, household size, energy efficiency practices, and appliance usage patterns. 

Here are the country’s largest cities average electricity bill comparison^[4]:

Decoding Your Bill: How to Calculate Your Energy Consumption 

If you are aiming to cut down on your utility expenses, understanding how to calculate your energy consumption is important in reducing your average electricity bill. 

1. Energy Consumption Formula 

To start calculating energy consumption, you need a simple but effective formula:

Energy (kWh) = appliance wattage (watts) × usage time (hours) ÷ 1000

Let’s break this down with a practical example:

If you use a 1000-watt appliance, such as a space heater, for 2 hours:

1000 × 2 ÷ 1000 = 2 kWh

Now, if your utility company charges $0.15 per kWh, the total cost for that usage would be:

2 kWh × $0.15 = $0.30

This simple calculation helps you understand how small appliances used frequently can contribute significantly to your average electricity bill. 

2. Find Appliance Wattage 

Before you can apply the formula, you need to know the wattage of your appliances. Here is how:

• Check the appliance label: most devices have a sticker or plate with voltage and wattage details.
• Refer to the user manual: power consumption is usually mentioned in the specification section.
• Look it up online: if you don’t have the manual, search for your appliance model on the manufacturer’s website or an appliance energy database. 

3. Estimating Daily Usage Time 

Knowing how long each device runs daily is equally important. Consider these examples:

• Refrigerator: Though it cycles on and off, it typically runs 24/7, consuming energy around the clock. 
• Washing machine: may only run 1 hour per load, so frequency matters. 
• Television: On average, households in the U.S. watch TV for 7.7 hours per day and 8.6 hours for households with more than one TV.^[5] 

Keep a rough log or use smart plugs with energy monitoring to track actual usage time for better accuracy. 

4. Understanding Fixed and Variable Costs

Your average electricity bill includes two main types of charges 

Fixed Costs 

These are consistent each month, regardless of your usage. They include things like 

• Transmission and distribution fees
• Taxes
• Service charges 

Variable Costs 

These depend entirely on how much electricity you consume. The total is calculated using the kWh rate multiplied by your total usage. 

Wattage of Home Appliances 

Below is a quick reference list of the wattage of home appliances to give you insight into daily consumption: 

What Uses the Most Electricity in a Home?

When it comes to managing your average electricity bill, knowing which appliances and systems draw the most power is important. While every household is different, several key energy hogs are consistent across the board: some run all day, others used regularly but in high-demand bursts.

1. Heating and Cooling Systems 

Heating and air conditioning are typically the biggest contributors to energy use. A 3-ton central air conditioning unit is common in many U.S. homes and consumes roughly 3.5 kWh per hour. If you run it nine hours a day during the hottest four months, you could spend around $460 per year just to stay cool.^[6] 

Upgrading to energy-efficient systems or installing smart thermostats can greatly reduce this portion of your average electricity bill.

2. Water Heating 

Electric water heaters are another major energy draw, often consuming up to 4500 to 5500 watts for 40 gallons. Since hot water is used year-round for bathing, washing, and cleaning, this can quietly add hundreds of dollars to your energy costs annually. 

According to the EPA, 17% of the average house’s energy bill comes solely from heating water.^[7] That is nearly one-fifth of your energy expenses going straight down the drain with every hot shower. 

3. Large Appliances 

Refrigerators run 24/7. Even efficient models use an estimated 657 kWh per year, costing around $78.84 annually.

Clothes dryers and washing machines used for eight loads per week can run for six hours each. This regular laundry routine alone can rack up over $115 per year in electricity use.

Ovens and stovetops, particularly electric ones, add additional demand during meal prep.

4. Lighting 

Though LED bulbs are more efficient, excessive or careless usage, such as leaving lights on in unoccupied rooms, still contributes to rising costs. 

5. Entertainment and Media 

Televisions, sound bars, game consoles, and streaming boxes can all draw continuous power. Even on standby, these devices contribute to your energy footprint. 

6. Computers and Home Office Equipment 

With remote work becoming more common, laptops, desk monitors, routers, and printers are active for hours each day, quietly raising your average electricity bill. 

6 Practical Tips to Lower Your Electricity Bill

Lowering your average electricity bill does not require sacrificing comfort. It simply takes smarter habits, thoughtful upgrades, and some savvy technology. With energy prices rising in 2025, implementing these practical strategies can offer significant long-term savings.

1. Adopt a Time-of-Use Plan 

Many U.S. utility companies now offer time-of-use pricing plans, where the cost of electricity varies depending on the time of day. Peak hours, typically 6 AM to 10 AM and 4 PM to 9 PM on weekdays, are when electricity is most expensive.

Running energy-intensive appliances like dishwashers, laundry machines, and ovens during off-peak hours (late at night or midday) can substantially cut your costs.

2. Replace Old Appliances 

Outdated appliances often use more electricity than newer, energy-efficient models. For example, an old refrigerator can use twice as much energy as a new one.^[8] Did you know that a refrigerator from the 1990s could consume over 1000 kWh per year, nearly double that of modern, efficient models? Look out for inefficient HVAC systems, old washing machines, and outdated water heaters.

3. Switch to Energy Star Appliances 

Appliances that bear the Energy Star label are certified to consume less energy while performing optimally. According to the U.S. EPA, Energy Star-certified appliances can reduce electricity usage by 10% to 50%, depending on the appliance.^[9] 

Whether it’s your refrigerator, washer, air purifier, or computer monitor, choosing certified options will help cut down energy consumption. 

4. Optimize Appliance Usage 

Small behavioral changes in how you use appliances can also contribute to savings:

Whether you are using a washing machine or dishwasher, wait until you have a full load. This minimizes the frequency of use and maximizes each cycle’s efficiency. 

Use eco or energy-saving modes. Many appliances now come with built-in “eco” settings. These reduce power significantly without compromising results. For example, using the eco mode on the dishwasher can reduce energy usage by up to 30% per cycle.^[10]

5. Unplug Idle Electronics 

Electronics like televisions, chargers, and gaming consoles continue to draw power even when turned off. This is known as phantom load or standby power. Standby electricity can account for 5% to 10% of your electricity usage. Unplugging devices or using smart power strips that cut power completely when not in use can eliminate this wasted energy. 

6. Utilize Natural Light 

Lighting seems like a minor contributor, but lights left on for long hours, especially incandescent bulbs, can increase your electricity bill. Try this: 

• Open curtains during the day.
• Use light-colored walls and reflective surfaces to brighten interiors naturally.
• Install skylights or solar tubes where possible. 

Install a Solar Backup Generator 

A solar generator for house use is one of the smartest energy investments you can make, especially during power outages or peak electricity hours. The Jackery Solar Generator 5000 Plus is a high-capacity, all-in-one solar power solution with expandable storage ranging from 5 kWh to 60 kWh. It can support multiple devices for up to 30 days.

Designed to keep your appliances running, it delivers dual voltage output (120V/240V) and up to 14,400 W of output through 12 versatile ports. What sets it apart is its 0ms UPS switchover, which ensures critical devices like refrigerators, computers, and routers stay powered without interruption. With smart transfer switch integration, you can even keep entire rooms running smoothly during emergencies.

This solar backup generator is equipped with app-based smart control, multiple recharging options, and a zero-emission design, making it ideal for safe indoor use. What’s most impressive is Jackery’s patented ZeroDrain technology, which leaves 92.5% power after 365 days. Consequently, it guarantees power during outages caused by storms, high temperatures, or earthquakes. 

 Conclusion 

With rising energy costs, proactive steps are crucial. Understanding your energy consumption, optimizing appliance use, and investing in renewable solutions like the Jackery Solar Generator 5000 Plus can positively impact your average electricity bill.

By implementing these strategies, homeowners can achieve greater energy efficiency, reduce expenses, and support a more sustainable future.