Electricity rates · July 2026
Electricity rates in Tennessee
Homes in Tennessee paid an average of 13.71¢ per kWh in July 2026 — well below the U.S. average of 18.31¢ and up 3.8% from a year earlier. It ranks #47 of 51 (50 states and D.C.), from most to least expensive.
- Residential price per kWh
- 13.71¢
- U.S. 18.31¢
- Commercial price per kWh
- 13.43¢
- U.S. 14.53¢
- Industrial price per kWh
- 7.13¢
- U.S. 9.77¢
- All sectors price per kWh
- 12.21¢
- U.S. 14.99¢
What electricity costs per month in Tennessee
Cost at the state average residential price, which includes taxes and fees. Your utility's rates may differ. Try your own kWh.
| Monthly use | Tennessee | U.S. average |
|---|---|---|
| 500 kWh | $69 | $92 |
| 900 kWh | $123 | $165 |
| 1,200 kWh | $165 | $220 |
| 1,500 kWh | $206 | $275 |
Tennessee vs. the East South Central region
Residential price per kWh, July 2026, and change from a year earlier.
| Area | Price | vs. year ago |
|---|---|---|
| Tennessee | 13.71¢ | +3.8% |
| East South Central average | 14.61¢ | +4.4% |
| Alabama | 16.40¢ | +3.0% |
| Mississippi | 14.54¢ | +7.1% |
| Kentucky | 13.81¢ | +5.2% |
Could solar cut your Tennessee bill?
At 13.71¢/kWh, our example 7 kW system pays back in 15.2 years and saves $1,285 in year one.
Common questions
What is the average electricity rate in Tennessee?
13.71¢ per kWh for residential customers in July 2026, according to the U.S. Energy Information Administration. That is well below the national average of 18.31¢. Your own rate depends on your utility and plan.
How much does 1,000 kWh of electricity cost in Tennessee?
At the state average of 13.71¢/kWh, 1,000 kWh of energy costs about $137. That average already includes taxes and fees spread across all kWh sold; your own cost depends on your utility's rates and how much you use.
Are electricity prices in Tennessee going up?
The July 2026 average was up 3.8% from the same month a year earlier (13.21¢). Recent EIA months are preliminary and can be revised.
Is solar worth it in Tennessee at these prices?
For our example 7 kW system on a 10,500 kWh/yr home with full net metering, payback in Tennessee is 15.2 years at today's average price. It depends heavily on your rate, roof and how your utility credits exports — see the state solar page for details.
Electricity rates in other states
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A (average price of electricity to ultimate customers), July 2026. Recent months are preliminary. Monthly cost examples multiply the average price by usage; EIA derives the average by dividing utility revenue (including taxes and fees) by kWh sold.
