Electricity Prices in August 2026: What Changed, Where

Biggest decreases by state

Few states got cheaper. The largest drop was in Connecticut, from 30.17¢ to 24.51¢, a change of -18.8%. Other declines were smaller:

• California: 29.75¢, down from 30.92¢ (-3.8%)
• Utah: 13.31¢, down from 13.62¢ (-2.3%)
• Florida: 14.99¢, down from 15.33¢ (-2.2%)
• New Jersey: 24.61¢, down from 24.7¢ (-0.4%)
• Arizona: 15.05¢, down from 15.09¢ (-0.3%)
• Massachusetts: 30.48¢, down from 30.55¢ (-0.2%)

Some of these are nearly flat. Even with Connecticut's drop, it remains among the pricier states.

Regional differences

EIA also groups states into census divisions. August 2026 residential prices:

Division	August 2026	A year earlier	Change
Pacific Noncontiguous	40.79¢	34.72¢	17.5%
New England	28.31¢	29.01¢	-2.4%
Pacific Contiguous	25.59¢	25.42¢	0.7%
Middle Atlantic	25.17¢	23.73¢	6.1%
East North Central	19.6¢	18.11¢	8.2%
South Atlantic	16.04¢	15.64¢	2.6%
West North Central	15.92¢	15.17¢	4.9%
West South Central	15.3¢	14.79¢	3.4%
Mountain	14.86¢	14.57¢	2%
East South Central	14.47¢	13.99¢	3.4%

The Great Lakes area (East North Central) rose the most among the mainland divisions. New England was the only division to fall. Why does the map look like this? Fuel mix, power-line costs and local rules all play a part, as explained in why electricity prices differ by state and electricity prices by region.

Where prices are highest and lowest

At the top, Hawaii (47.18¢), Maine (32.11¢), California (29.75¢), Alaska (29.41¢) and New York (28.65¢) stand out. At the bottom are Nevada (12.72¢), Louisiana (12.87¢), North Dakota (13.31¢), Utah (13.31¢) and Idaho (13.37¢). Our guide to the cheapest and most expensive states for electricity covers the full ranking, and each state has its own page, such as Texas electricity prices and New York electricity prices.

What this means for your bill and for solar

Your bill is roughly your kWh use times your rate, plus fixed fees. A higher rate means each kWh you avoid buying is worth more. That is the core idea behind solar payback: rooftop panels offset purchased power, so a state with higher prices can repay a system faster, all else equal. Our guide on electricity prices and solar payback explains the link, and solar payback period explained shows how the math works.

Price is only one input. Sun hours, system cost, how your utility credits exported power, and whether you have incentives all matter. The federal 30% Residential Clean Energy Credit (Section 25D) is not available for property placed in service after December 31, 2025, according to the IRS. Net metering and incentives vary by state and utility; DSIRE keeps a database of current programs. Berkeley Lab reports a median installed price of $4.0 per watt for host-owned residential systems installed in 2024, with cash purchases at a median of $3.5 per watt.

Our example home

When we model a home, we use these assumptions: a 7 kW system, 10,500 kWh of yearly use, 40% of use while the sun is up, $3,500 per kW ($24,500 total), no incentives, $100 a year for maintenance, electricity prices rising 2.5% a year, panel output falling 0.5% a year, a 25-year horizon, and export credits capped at a year of grid purchases. Production comes from PVWatts, the Department of Energy's free solar estimator, for a south-facing roof at a 20° pitch with 14% losses. Full details are in our methodology.

Steps you can take now

1. Find your own rate on your latest bill and compare it with your state's average above.
2. Try the electricity cost calculator to see what your use costs.
3. Read how to lower your electric bill for no-cost habits and low-cost upgrades.
4. If you are curious about solar, run your numbers in the solar calculator and get several quotes before deciding.
5. Check solar panels without the tax credit to see how payback changes with no federal credit.

Bottom line

Prices rose in most states in August 2026, and the U.S. residential average of 18.16¢/kWh was up 3.4% from a year earlier. The size of the change varies a lot: Hawaii and Maine jumped, while Connecticut fell. Because EIA's latest month is preliminary, treat these numbers as a snapshot. For decisions about your home, rely on your own bill and written quotes, and use our price tables to see how your state compares.