Methodology

Energy Cost Guide publishes estimates to help you benchmark what energy costs where you live. Here’s exactly how our numbers are built.

Electricity rates and bills

We start from average residential electricity prices (cents per kWh) and typical monthly usage for each state, based on public U.S. Energy Information Administration (EIA) data. A monthly bill is simply price × usage. The U.S. baseline we use is about 16.5¢/kWh, 900 kWh per month, and roughly $137.00 per month.

City estimates keep the state price (electricity prices are set at the utility/state level) and adjust typical usage slightly for housing density.

Solar savings

Solar estimates assume a typical 8 kW residential system costing about $24,000 before incentives, or ~30% less after the federal Residential Clean Energy Credit. We estimate annual savings from your state’s electricity spend and a regional sunlight factor, then derive a payback period and 25-year savings figure.

Data sources

U.S. Energy Information Administration (EIA) residential data, U.S. Census, and industry averages. Current edition: January 2026.

Important limitations

These are estimates, not quotes or bills. Your actual costs depend on your utility, rate plan, home, usage, roof, and current incentives. Compare real offers before deciding. Energy Cost Guide is an independent information site and does not sell energy or solar.

Corrections

Email hello@energycostguide.com and we’ll review.