With energy costs likely to be high during what could be the hottest summer on record, the personal-finance website WalletHub on July 1 released its report on Energy Costs by State in 2024, as well as expert commentary, to offer insight into how Americans’ energy bills are affected by where they live and how much they use.
WalletHub compared the average monthly energy bills in each of the 50 states using a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil.
Energy Consumption & Costs in California (1=Most Expensive; 25=Avg.):
Avg. Monthly Energy Bill: $476
49th – Electricity Consumption per Consumer
47th – Natural-Gas Consumption per Consumer
42nd – Motor-Fuel Consumption per Driver
40th – Home Heating-Oil Consumption per Consumer
“There are various things people can do to reduce their energy consumption, from being more sparing in their use of air conditioning and heat to using efficient light bulbs. Simply living in one of the least energy-expensive states may outweigh any individual measures when it comes to cutting down monthly bills, though. People planning to move in the near future should definitely consider energy costs when deciding where to settle down,” said WalletHub Analyst Cassandra Happe. “Wyoming is the state with the highest energy costs in 2024, and residents’ average monthly energy bill is a whopping $1,591. This is due in part to the fact that Wyoming has the highest gas and residential oil consumption per capita, which makes sense considering Wyoming’s extremely cold winters.”
For the full report, visit: https://wallethub.com/edu/energy-costs-by-state/4833
North Dakota was at number two, Iowa third, Montana ranked fourth and Minnesota was fifth. California was at number 41 overall. Least expensive states were Nebraska at number 46, followed by Texas, Kansas, Arizona and, at number 50, with an average of just $376 per month for energy bills, was New Mexico.
Expert Commentary
What are some good tips for saving money on energy bills?
“Hang your laundry on a clothesline rather than use a dryer. Surprisingly, you can dry clothes even when it is cold as long as they are in the sun. You can save $20-50 per year depending on your electric rates and how often you do laundry. Lower your thermostat in winter and raise it in summer. Get a home energy audit. They will tell you if it is cost-effective to add insulation to your attic and crawl spaces and replace windows with more energy-efficient ones.”
Steven Hegedus – Professor; Senior Scientist, Institute of Energy Conversion, University of Delaware
“The best means for saving money on residential energy bills is to reduce usage. If you reside in a market such as Texas with deregulated electricity providers, you can shop around for lower electricity prices. Usage is most often a factor of temperature, appliance use, and energy efficiency. Older drafty homes may not be energy efficient. Many states and utility companies provide incentives and assistance to upgrade the energy efficiency of your home including energy audits, insulation, newer efficient windows, and more efficient appliances. Compared to other countries, Americans tend to prefer warmer homes in the winter and colder homes in the summer. This contributes to higher energy usage which in turn increases energy bills. There are multiple means to reduce energy consumption and bills, but it takes a concerted effort and doesn’t come without a bit of sacrifice and action.”
Justin Perryman – Adjunct Professor, Washington University School of Law
What makes energy costs higher in some states than in others?
“Many factors. States have different sources of generation available, and many import from other states. There can be three parts to the electric bill: one relates to how much kW of energy you actually use, one is a transmission/distribution charge, and finally, a fixed charge per customer to cover various programs and fees that are not dependent on how much energy you use. These vary from state to state. It also depends if you have a regulated or unregulated utility or a coop.”
Steven Hegedus – Professor; Senior Scientist, Institute of Energy Conversion, University of Delaware
Are tax deductions and credits effective at incentivizing households to be more energy efficient?
“Tax incentives of all types have been proven to increase household energy efficiency measures. When the government or utility companies offsets the costs of new windows, more insulation, and more efficient appliances, there is often an increase in efforts to employ these measures for residential energy efficiency.”
Justin Perryman – Adjunct Professor, Washington University School of Law
