⚠️ The federal clean-energy tax credits were rolled back in 2026 (solar/battery credits ended Dec 31, 2025; the EV-charger credit June 30, 2026). State & utility rebates are now the main savings.

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Solar · Published 2026-07-01

The 10 States With the Most Expensive Electricity (2026)

Residential electricity rates ranked — the ten priciest 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 most expensive states by average residential rate.

#StateAvg. residential rate8 kW solar payback context
1Hawaii28.0¢/kWhhigh rates = faster solar payback
2Massachusetts24.8¢/kWhhigh rates = faster solar payback
3Connecticut23.5¢/kWhhigh rates = faster solar payback
4Rhode Island22.8¢/kWhhigh rates = faster solar payback
5Alaska22.4¢/kWhhigh rates = faster solar payback
6California22.0¢/kWhhigh rates = faster solar payback
7New York21.8¢/kWhhigh rates = faster solar payback
8New Hampshire21.8¢/kWhhigh rates = faster solar payback
9Vermont19.8¢/kWhhigh rates = faster solar payback
10Maine19.8¢/kWhhigh rates = faster solar payback

Expensive power changes the math

In high-rate states, every kilowatt-hour a solar panel produces or a heat pump avoids is worth more — which is why payback periods in New England and California beat sunnier-but-cheaper states. If you live on this list, electrification is less about ideology and more about arithmetic.

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