Are Energy Costs High in Your Area?

Electricity rates in the USA vary widely depending on a variety of factors such as location, energy source, time of day, and also by the type of location you have. Where do you compare and how can you save?

Average Electricity Rates in the USA

The average cost of electricity for businesses in the United States varies depending on a variety of factors, including the location of the business, the type of industry, and the amount of energy used. According to the U.S. Energy Information Administration (EIA), as of December 2021, the average price of commercial electricity in the United States was 10.6 cents per kilowatt-hour (kWh).

However, it’s important to note that this is just an average, and the actual cost of electricity for a business could be higher or lower depending on their specific circumstances. Factors that can influence the cost of electricity for a business include:

  • Geographic location: Electricity prices can vary widely depending on where the business is located. For example, businesses in states with high energy production may have lower electricity costs than businesses in states with limited energy resources.
  • Time of day: Some electricity providers offer time-of-use pricing, which means that the cost of electricity can vary depending on the time of day it is used. Businesses that use a lot of electricity during peak hours may pay more than businesses that primarily use electricity during off-peak hours.
  • Type of industry: Some industries require more electricity than others. For example, manufacturing facilities may use more energy-intensive equipment than an office building, which could lead to higher electricity costs.
  • Energy efficiency: Businesses that have implemented energy-efficient measures may be able to lower their electricity costs by reducing their overall energy usage.

In residential areas, the costs can be slightly higher as businesses typically pay lower rates than residential customers due to the larger amount of energy they consume. So if you’ve been taking your salon laundry home, think again as you are just driving your costs up. The state with the highest average residential electricity rate in the USA is Hawaii, at around 32.52 cents per kWh, while the state with the lowest average rate is Louisiana, at around 8.81 cents per kWh.

The type of energy source used to generate electricity can also affect the rates. For example, states that rely heavily on coal for electricity generation tend to have lower rates than those that rely on natural gas or renewable sources.

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