How Much Electricity Does the Average House Use?

The US used 4.07 trillion kilowatt-hours of electricity in 2022. This was the all-time high and 14 times more electricity than we used in 1950. The US and the world are projected to use more electricity every year until at least 2050. That electricity is used by businesses, data centers, street lights, and, to varying degrees, our homes.

You might use more electricity because you work from home or drive an EV. At the same time, you might reduce your electricity consumption by having a smart thermostat or thanks to living somewhere an open window and a ceiling fan make good AC for most of the summer. You save money using less electricity and energy. 

If you can cut some of your tiny piece of those trillions of kilowatt-hours the world consumes, or have your own independent, renewable, clean electricity, you can save money over the course of months, years, and even decades.

How Much Electricity Do We Use? (And How Much Does It Cost?)

In 2023, the average residential property in the US used 855 kilowatt-hours a month according to the US Energy Information Administration. The average consumption varies by state or region. Your consumption depends on many factors, like the season, how many people live at home, your habits, such as working from home, and your appliances and the age of the house itself. Your monthly bill depends not only on your consumption, but also on your utility’s rate. The average rate nationwide as of July 2024 was 16.62 cents per kWh. It was 15.89 cents per kWh a year earlier and an average of 16.00 cents for 2023 as a whole. The average monthly electric bill for more than 141 million US homes was $136.84. 

States with the highest average consumption don’t always have the highest bill. Louisiana had the highest consumption with 1,238 kWh per month. (Much of the Deep South, southwest, Mid-Atlantic, and Great Plains have higher kWh usage as residents tend to use air conditioning more often for more of the year.) California has the lowest average electricity consumption of 491 kWh a month. The difference in average rates adds up to California’s average monthly bill being $144.81 and Louisiana’s being $142.96. 

The highest average bill goes to Hawaii at $213.23 a month and, in the continental US, Connecticut at $202.74. The lowest average bill is in Utah at $84.97.

Data from EIA.

What Are a House’s Biggest Electricity Consumers?

In 2020, air conditioning used 19% of electricity in residential settings in the US, and was the largest residential electricity consumer according to data from the US Energy Information Administration. Heating and water heating used about 12% each. Lighting, refrigeration, TVs and related devices, and laundry dryers are next going down the list.

Heating and cooling accounted for about 52% of overall residential energy usage in 2020. HVAC efficiency is improving, so it’s declining as a percentage of a home’s energy usage. Yet, the gross energy usage, electric and total, is increasing as more homes and buildings have heating and cooling. In 1980, 57% of US homes had air conditioning. As of 2020, it was 88% of US homes.

Home Electrification and Energy Consumption

If you’re electrifying your whole home, some of your appliances, or your vehicle, you might be trying to cut your overall energy consumption. As you’re moving to electric and/or smart heat pumps, thermostats, laundry, and cars, it makes sense you’ll use more electricity and less of other forms of energy (mostly gas).

You’re likely to get a higher electric bill, since more of your home, appliances, and driving are on electric. In order to save money, the increased electricity cost needs to be smaller than the decrease in overall energy cost. 

For instance, combining an electric heat pump and a smart thermostat may give you a more energy-efficient HVAC system year-around as the thermostat “learns” your settings and patterns and adjusts the home’s heating and cooling in the most efficient way possible. 

Home solar panels can replace some of the electricity you’d normally buy and save you even more. This can move you away from the utility company’s rates, increase your energy independence, and make a bigger environmental difference.

Solar Panels and Energy Consumption

If you had your own renewable electricity source on your home, it would make sense to run as many of your home appliances and systems on that electricity as possible. You’d want to reduce your energy usage from sources other than electricity, then reduce your monthly electric utility bill. 

Solar panel systems are designed to last for 25 or more years. Although there’s a significant upfront cost to buying a residential solar system, you’re paying today for the electricity you generate and use for decades to come. You can save money monthly by reducing or even eliminating your usual utility bill.

Other Ways to Use Less Electricity

There are plenty of strategies, from the simple to the more complicated, that can lead to saving energy. A home energy audit checks a home’s energy efficiency by inspecting where air, hot or cold depending on the season, can escape your home. An energy audit checks insulation, the foundation, walls, siding, chimney, caulking, window and door frames, vents, crawl spaces, and attics.  It can be done by a pro or you can do parts of it yourself. 

If it’s time for a new appliance, pay attention to its energy efficiency. Look for the Energy Star certification and know about any incentives or tax credits you may qualify for with Energy Star products. Most appliances are sold with an Energy Guide label that will give its average consumption and cost over a year of normal use.

An easier, less expensive step than new appliances is checking the light bulbs around your house. LED light bulbs use at least 75% less energy and last 25 times longer than incandescent bulbs.

Smart plugs are a good middle ground between your current appliances and going to new, smart devices or appliances. You can monitor energy usage, stop vampire energy usage, and control appliances via an app, which can be a major safety plus.

You can use ceiling fans year-around to reduce your need for heating and cooling. We usually turn a fan on to make it feel cooler, but you can reverse the direction of a ceiling fan to move warmer air down in cool or cold months. Running the fan doesn’t actually change the temperature in a room, it makes it feel warmer or cooler, by up to four degrees, so you can adjust your thermostat accordingly. 

Home Energy Consumption FAQs

Why is my electricity bill so high?

The price of electricity has increased over the last year. From July 2023 to July 2024, the nationwide average rate has gone from 15.89 cents per kWh to 16.62. Your home’s bill may vary due to weather, number of people at home, your daily schedule and habits, the age of the home, your appliances, and more. 

Which states have the highest and lowest electricity bills?

By the average monthly bill, Hawaii is the most expensive US state with an average electric bill of $213.23. Utah is the least expensive state with an average bill of $84.97. By rate, Hawaii has the most expensive electricity rate and Washington has the lowest electricity rate. 

How much electricity does AC use?

Air conditioning is typically the biggest user of energy in a home in the US. According to the EIA, AC used about 19% of residential electric consumption in 2020. Heating plus cooling used about 52% of a home’s overall energy consumption as of 2020. In 2023, the average monthly electric bill for more than 141 million US homes was $136.84, with the average home using 855 kWh a month. Taking 19% of those numbers equals $26.00 and 162.5 kWh.

About the AuthorAndrew GiermakWriter and Editor

Andrew joined Palmetto in Charlotte in August 2024. He’s been a writer in journalism, then in business, going back to almost the 20th century. He’s lived in Indiana, Virginia, Pennsylvania, Virginia again, and now North Carolina for the last 12 years. He likes golf. Is he good at it? Not so much.