Electricity became more expensive for the average U.S. household in July 2026, according to the latest monthly data from the U.S. Energy Information Administration.
The national average residential electricity price reached 18.31 cents per kilowatt-hour in July, up from 17.45 cents per kilowatt-hour in July 2025. That represents a year-over-year increase of 4.9%.
Residential electricity sales also increased 1.0% from a year earlier, while revenue collected from residential electricity sales rose 6.0%. In other words, households collectively used a little more electricity, but the amount paid to electricity providers rose much faster.
What Happened?
EIA’s September 24 release covers electricity data for July 2026. Across all customer sectors, the average retail price was 14.99 cents per kilowatt-hour, 4.4% higher than in July 2025.
Residential customers paid more than the overall average because household electricity rates are typically higher than rates paid by large industrial customers. The residential average of 18.31 cents per kilowatt-hour was 4.9% higher than the previous July.
The data are national averages, so they do not mean every household experienced the same increase. Electricity pricing varies dramatically from state to state and even among utilities within the same state.
How Much Do Electricity Prices Vary by State?
The July data show just how large the regional differences can be. EIA reported average residential prices of 48.00 cents per kilowatt-hour in Hawaii, 33.61 cents in California, 32.41 cents in Maine, and 30.49 cents in Massachusetts.
At the other end of the spectrum, residential prices were 13.12 cents per kilowatt-hour in Utah, 14.36 cents in Wyoming, and 14.71 cents in Washington. Oregon’s average was 15.97 cents per kilowatt-hour.
Those differences matter because the same energy-saving upgrade can have very different payback periods depending on local electricity prices. Cutting 200 kilowatt-hours of monthly consumption is worth much more in a high-rate state than in a low-rate state.
What This Means for Homeowners
A higher price per kilowatt-hour makes every unit of electricity consumed more expensive. That means efficiency improvements become more financially valuable when rates rise, but it also means households that rely heavily on electric heating, cooling, water heating, or vehicle charging can feel rate changes more quickly.
The impact depends on usage. A small apartment with modest electricity consumption may notice a relatively limited change, while a large all-electric home in a hot or cold climate can see a much larger difference.
Seasonality also matters. July is a high-demand month in many parts of the country because of air-conditioning use. A household’s annual cost cannot be estimated accurately from one summer month alone.
Why Are Electricity Prices Rising?
There is no single national cause. Retail electricity rates reflect a combination of generation costs, fuel prices, power-plant investments, transmission and distribution infrastructure, storm recovery, wildfire mitigation, grid modernization, environmental compliance, financing costs, utility regulation, taxes, and other local factors.
Some utilities also use time-of-use or seasonal rate structures, meaning the price of electricity can vary depending on when it is consumed.
That is why homeowners should look beyond the national average and check the actual rate structure printed on their utility bill. The most useful number for household planning is the price you personally pay—and whether that price changes by season or time of day.
Where Homeowners Can Usually Save the Most
For many homes, heating and cooling is the largest or one of the largest energy loads. That makes HVAC efficiency, thermostat settings, duct performance, insulation, and air sealing important places to investigate first.
Water heating can also be significant, particularly in larger households. Efficient water-heating equipment, lower hot-water waste, and sensible temperature settings can reduce consumption without changing the home’s basic comfort.
Older refrigerators, freezers, clothes dryers, dehumidifiers, and other equipment can also add meaningful electricity use, although replacing an appliance only for energy savings is not always economical. The best time to prioritize efficiency is often when an old appliance already needs replacement.
Do Small Changes Still Matter?
Yes, but homeowners should prioritize changes by impact. Turning off a few lights can help, especially if they are older incandescent bulbs, but a poorly sealed attic or inefficient air-conditioning system can use far more energy.
A practical approach is to identify the largest loads first. Review twelve months of utility bills, note seasonal spikes, and determine whether the home is using more electricity because of weather, equipment, occupancy, or a rate change.
Smart thermostats and home-energy monitors can help some households understand patterns, but they are tools rather than automatic savings devices. The savings come from the decisions and equipment changes the information helps support.
What to Watch in the Next EIA Release
EIA’s next Electric Power Monthly release is scheduled for October 23, 2026 and will include newer data. One month does not establish a long-term trend, so subsequent releases will show whether the year-over-year increase persists into late summer and early fall.
Home Power Today will continue tracking national and state electricity-price data because it directly affects the economics of efficiency upgrades, heat pumps, electric vehicles, solar, batteries, and smart-home energy management.
The Bottom Line
Residential electricity averaged 18.31 cents per kilowatt-hour nationwide in July 2026, 4.9% higher than a year earlier. Residential electricity sales increased only 1.0%, while residential revenue rose 6.0%.
The national number is useful for understanding the direction of the market, but household decisions should be based on local rates and actual consumption. As electricity becomes more expensive, reducing unnecessary usage and making high-impact efficiency improvements can become increasingly valuable.