Solar · Published 2026-07-03
The 10 States With the Cheapest Electricity (2026)
Residential electricity rates ranked — the ten cheapest states as of July 2026, and what that means for solar, heat pumps and EVs.
Your electricity rate is the master variable of home electrification: it sets what solar saves, what a heat pump costs to run, and how much an EV undercuts gas. Here are the ten cheapest states by average residential rate.
| # | State | Avg. residential rate | 8 kW solar payback context |
|---|---|---|---|
| 1 | Louisiana | 9.0¢/kWh | low rates = slower solar payback |
| 2 | North Dakota | 9.8¢/kWh | low rates = slower solar payback |
| 3 | Arkansas | 10.2¢/kWh | low rates = slower solar payback |
| 4 | Idaho | 10.2¢/kWh | low rates = slower solar payback |
| 5 | Washington | 10.2¢/kWh | low rates = slower solar payback |
| 6 | Nebraska | 10.8¢/kWh | low rates = slower solar payback |
| 7 | Oklahoma | 10.8¢/kWh | low rates = slower solar payback |
| 8 | Utah | 10.8¢/kWh | low rates = slower solar payback |
| 9 | Wyoming | 10.8¢/kWh | low rates = slower solar payback |
| 10 | Kentucky | 11.2¢/kWh | low rates = slower solar payback |
Cheap power changes the math
In low-rate states, solar paybacks stretch and heat pump savings shrink — but EV charging is spectacularly cheap, and rebates can still tilt individual projects. Run the numbers before assuming either way.
See what solar saves at your rate →
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