What’s the Average Household Electricity Bill in 2025?

Average electricity bills have gone up over the last few years. With massive changes ranging from energy demand for artificial intelligence to global conflicts making it likely that trend will continue, it can seem like there’s nothing you can do about it. 

However, there are a lot of decisions, big and small, you can make that affect your electricity bill. Some ideas take just an extra second. Other projects are larger investments. How you heat and cool your home, use time-of-use utility rates, do your laundry, or power your home are some of the ways you can control your home electricity bill no matter what happens with the rest of the world.

What Is the Average Household’s Electricity Bill?

The average electric bill for a US residential consumer was $144 a month in 2024 according to data from the US Energy Information Administration. This number can vary quite a bit from sea to shining sea. For instance, according to the EIA, customers in Hawaii and Connecticut paid an average of more than double what people in Utah and New Mexico paid. The national average monthly bill was $121 in 2021, $137 in 2022, and $138 in 2023.

Are Electricity Bills Going Up?

Electric bills are rising and expected to keep rising.

The average monthly electric consumption from utilities per household has dropped slightly in recent years, from 900 kWh per month in 2021 to 865 kWh per month in 2024. On the other hand, the average residential price of electricity has risen from 13.72 cents per kilowatt-hour in July 2021, to 16.61 cents in July 2024, and to 17.47 cents in July 2025.

Monthly electric bill, national average

Source: US EIA

The new Palmetto app makes following your home energy usage and finding ways to save easy. Compatible with some local utilities, the app gives you regular looks at your energy usage and opportunities to earn discounts on energy-saving upgrades to your home when you reduce your consumption.

Rising demand for energy, increasing costs of building and maintaining electricity infrastructure, and dozens of other local, national, and global factors are pushing electricity prices up. For example, demand for energy is increasing as AI and data centers, cryptocurrency, and greater electrification all become more common.

The need for electricity is projected to grow in the US and globally. In the US, according to the National Electrical Manufacturers Association, electricity demand is projected to be 50% more in 2050 than it is today. According to the US Congress, data centers consumed 4.4% of the country’s electricity in 2023 (176 terawatt-hours) and could consume up to 12% of US electricity by 2028. According to the International Energy Agency, global power demand from data centers is projected to more than double by 2030.

This higher demand comes while much of the existing energy infrastructure is generations old. Utility companies building new construction or repairing existing plants, lines, and towers pass those major expenses to consumers. Given all the infrastructure built in the last half of the 20th century, and now due for repairs, upgrades, or replacement, this is becoming a more pressing need. Goldman Sachs projected, in a 2023 report, the need for $2.3 trillion in expansion, upgrade, and digitalization of power networks in the U.S.

What Affects a Home’s Electricity Bill?

To reduce your electric bill, it boils down to either cutting your energy consumption or cutting the cost of the energy you’re using. 

The biggest slice of the energy-usage pie for most homes is heating and cooling. Heating and cooling accounted for about 52% of an average US home’s energy use in 2020, according to the EIA. So, heating and cooling is your best chance to make a real difference. Using a smart thermostat, improving your home’s insulation, and upgrading your HVAC system to a new energy-efficient heat pump can reduce the amount of energy you use to heat or cool your home. Smaller changes around the house like running your ceiling fans or using shade in your home smarter are ways to save on heating and cooling. According to the Department of Energy, you can save about 3% on your cooling costs for each degree you raise the thermostat.

Water heating is another major energy consumer in a home. You can save energy by turning your water heater temperature down to 120 degrees. You can also switch to a new efficient electric, heat pump, or tankless water heater. Installing low-flow showerheads and faucets can also reduce your need for water heating. 

You may not have much sway over utility infrastructure or geopolitics. For energy prices though, you can pay attention to your utility company’s time-of-use rates or peak/off-peak periods and shift some electricity use — like charging an EV, running your dishwasher, or precooling your home — to off-peak times.

Going to home solar panels as a cheaper, renewable, and independent electricity source for most or all of your home’s energy is one way to lower them.

Reasons your energy bill may change

If you’re interested in more ways to save energy and save money everyday at home, check out the new Palmetto app. It makes tracking your energy usage easy and like a game. When you save energy, you can earn points to use for discounts on products that can help you save more money and energy. You can also learn more and get an estimate for your address with Palmetto’s Savings Maximizer. 

Frequently Asked Questions

How many watts does a home use?

The average US home used 865 kWh a month in 2024 according to the US Energy Information Administration, or about 29 kWh a day. This calculates to an average power use of about 1,200 Watts (1.2 kW) at any given time.

What is an easy way to reduce a home’s energy bill?

One easy way to cut your energy bill is to look at your thermostat’s setting. In the winter, turn the thermostat down one degree a day until you get to a temperature which is too cold, then go back to the previous day’s setting. In the summer, try it one degree warmer per day. Home heating and cooling accounts for a little more than half of an average home’s energy consumption, and bill.

Does home electrification affect energy bills?

By going to more electric appliances and systems in your home, your electric bill is likely to increase, but you can decrease or even eliminate your gas bill. If you pair electrification with solar, you can reduce your electricity bill, too.