Why is my electric bill so high? 9 reasons and how to fix them

The most common reasons for a high electric bill include energy-hungry appliances, phantom loads, poor insulation, and rate increases — most of which are fixable. Here’s how to identify what’s driving your bill and what to do about it. 

If your electric bill is higher than it should be, you’re not alone. Energy costs across the U.S. have climbed steadily and show no sign of coming down.

But there’s almost always a specific reason your bill is high, and most of them are fixable. Below, we break down 9 of the most common causes plus what can actually make an impact.

See how much solar could cut your electric bill →

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In this article: 

• Understanding your electric bill
• 4 common hard-to-fix reasons for high electric bills
• 6 fixable reasons your household electric bill might be high
• Potential solutions and tips for reducing bills
• Considering renewable energy options
• The one bill you can lock in
• What’s the holdup? Trust
• Finding an installer you can trust
• Frequently asked questions

What counts as a high electric bill?

The national average is around 18.83 cents, but where you live matters a lot.

State	Avg. monthly bill
North Dakota (lowest)	~ 12.35 cents
U.S. average	~ 18.83 cents
Hawaii (highest)	~ 46.62 cents

If your bill is consistently above your state’s average — or jumped significantly from one month to the next — one of the causes below is likely responsible.

Understanding your electric bill

It’s important to understand that kilowatts (kW) and kilowatt-hours (kWh) are not the same thing. A kW measures power, the rate at which electricity is used at a given moment. In contrast, a kWh measures energy, the total amount of electricity consumed over time.

When you look at your electric bill, you’ll notice that you’re charged based on the number of kWh your household uses over the billing period.

Did your bill suddenly spike?

Sometimes your bill doesn’t creep up, it doubles. If that happened to you, a few specific culprits are worth checking before you work through the full list of causes below.

Check these first if your bill jumped unexpectedly:

Your billing period was longer than usual. Utilities don’t always bill on exactly 30-day cycles. A 35-day billing period means a higher bill,  even if your usage was completely normal. Check the number of days covered on your current statement vs. last month’s.

Your meter was estimated, not read. Utilities sometimes estimate meter reads instead of taking an actual reading. If estimates ran low for a few months, you could get a “catch-up” bill when they finally take a real reading. Your bill will usually say “estimated” if this happened.

You were quietly enrolled in a TOU rate plan. Some utilities automatically move customers to time-of-use rates. If that happened without you noticing, your usage during peak hours (typically 4–9 PM) is now much more expensive. Check your bill for your current rate plan name.

A new appliance or EV is drawing more than expected. A new EV charger, mini-split, hot tub, or electric water heater can add $50–$200+ per month. If you added anything recently, that’s the first place to look.

Extreme weather drove up your HVAC use. A heat wave or cold snap can cause your heating or cooling to run far more than normal. Compare your usage to the same month last year to see if weather explains the jump.

If none of these explain it, the billing errors section and the fixable causes below are worth a close look.

What makes up the cost of electricity?

Electricity bills can vary by utility and state, but most break down into two main categories:

1. Supply (also called Generation or Energy Charge)

This is the cost of producing or purchasing the electricity you consume. Utilities either generate electricity at their own power plants or buy it on the wholesale market. The sources might include natural gas, coal, nuclear, hydro, wind, or solar.

2. Delivery (also called Transmission and Distribution or T&D)

This is the cost to deliver electricity from the power plant to your home. It includes:

• Transmission: High-voltage lines that carry electricity long distances.
• Distribution: The local network of poles, wires, and transformers in your area.

This fee supports the maintenance of shared infrastructure and grid reliability.

Other common charges on your bill

In addition to supply and delivery, your bill may include the following line items:

• Base charge (also called Fixed customer charge or Basic service fee): A flat monthly fee that covers administrative costs like billing, meter reading, and account maintenance — regardless of how much electricity you use
• Time-of-use (TOU) rates: If you’re on a TOU plan, your per-kWh rates vary depending on when electricity is used
  • Peak hours (typically late afternoons and early evenings) have higher rates
  • Off-peak hours (usually overnight or midday) have lower rates. For example, running your dishwasher at 9 p.m. might cost less than at 6 p.m.
• Transition charges (also called Public purpose charges): May include stranded cost recovery (paying off past utility investments like closed plants), system benefit charges (supporting low-income programs, energy efficiency, or clean energy initiatives), and public goods programs (funding outreach, research, or environmental improvements)
• Taxes and regulatory fees: Local or state taxes and other utility surcharges that may appear as separate line items

The amount you are ultimately charged each month is determined by how much kWh your household consumes. According to the U.S. Energy Information Administration (EIA), on average, households in the U.S. used about 899 kWh each month in 2022 (the most recent data available). 

4 hard-to-fix reasons your electric bills are high

Your electric bill can be high for many reasons — some you can fix, others you can’t. These are the more common issues that you have less control over. 

1. Seasonal changes and climate impact

Seasonal weather can greatly impact your household’s electricity usage and monthly bills. Any time you have to increase the use of electric heating or cooling, you’ll pay more. Air conditioners, in particular, are known for how much energy they consume. 

Climate change has also led to more extreme weather patterns. Electric prices can be volatile at any time of year because of the increased storms and longer periods of hot or cold weather. 

2. Increased household occupancy

While some energy costs, like heating, are less likely to change with more household members, other smaller uses can add up. For example, more people in a home means more devices charging, extra lighting, and more appliance use. Plus, more bodies in one area can increase the temperature of a room, meaning more A/C in the hotter months. 

3. Usage of energy-intensive appliances

Most homes have energy-intensive appliances — like your HVAC, water heater, and oven — that are unavoidable power draws, making up a large share of your monthly electricity costs. 

Energy-Intensive Appliances	Percentage of residential energy usage
Air conditioning	19%
Space heating	12%
Water heating	12%
Refrigerators	8%
Lighting	6%
TVS and related	6%
Clothes dryers	4%
Source: U.S. Energy Information Administration (EIA) 2023 report

4. Utility rates keep rising year after year

Even if your usage doesn’t change, your bill can go up. Utility rates have climbed consistently over the past decade, driven by three main factors:

Aging grid infrastructure. The U.S. electric grid is overdue for a major overhaul, and utilities are spending hundreds of billions on upgrades. Those costs get passed along to ratepayers as line items you may not even notice on your bill.

Fuel price volatility. Many utilities still generate power from natural gas. When gas prices spike electricity rates follow, often with a lag.

Climate-driven demand. More frequent and intense heat waves and cold snaps mean higher sustained demand for heating and cooling. More demand means tighter supply and higher prices.

That’s part of why solar is such a strong long-term investment. Once your system is paid off, you’re generating your own electricity at essentially zero cost. Whatever the utility decides to charge next year is their problem, not yours.

6 common reasons your electric bill is high (and how to fix them)

Chances are that one of the main fixable reasons for high electric bills applies to you. While these fixes can be more expensive upfront, they can significantly reduce your overall energy usage. 

1. Inefficient home appliances and systems

Outdated or inefficient home systems, such as HVACs or appliances, can be big energy drains. Updating to newer, more energy-efficient models is one way to quickly reduce energy consumption. 

• Older refrigerators typically consume about 35% more energy than an ENERGY STAR refrigerator.
• Inefficient air conditioning units: Replacing an aging AC with a new, high‐efficiency unit can cut cooling energy use by 30% or more.

2. Phantom loads and standby power

Just because an electronic device isn’t being used doesn’t mean it isn’t using power. Some appliances and devices are known as phantom loads, standby power, or even vampire users. That means they are constantly using power if they are plugged in. 

Although these devices don’t use as much electricity as your fridge, phantom loads can add up to 5-10% of total residential energy usage. Here are some common phantom load users to keep an eye out for: 

• Toasters
• Coffee makers
• Cell phone and laptop chargers
• Floor or desk lamps
• Voice-activated devices (like Google Home)
• TVs
• Projectors
• Microwave ovens
• Printers/Scanners
• Hairdryers

3. Insufficient home insulation

When you seal and insulate your home properly, you can cut heating and cooling costs by about 15% each year. Since a home’s HVAC system is already such a significant energy user, it uses even more electricity if the home isn’t properly insulated.  

Even if you believe your home is well insulated, there is a good chance it isn’t. According to an October 2024 study by the North American Insulation Manufacturers Association, approximately 89% of single-family detached homes are under-insulated. Focus on insulating these high-loss spots first: attics, basements, crawl spaces, floors, and walls. 

4. Utility billing errors

Billing errors are unfortunately more common than you may realize and remain an important reason to check your electric bill every month. Keep in mind that some of the errors are undercharges rather than overcharges.  

Common billing errors include:

• Bill miscalculation
  • This is one of the most common. You can avoid overpaying these errors by calculating the bill yourself, line by line. If the amount doesn’t match your bill, contact your utility company. 
• Invoicing periods
• Incorrect rates
• Inaccurate meter readings
• Duplicate charges

5. Time-of-Use (TOU) rate plans

You might unknowingly be on Time-of-Use (TOU) rate plans, which charge different rates for electricity depending on the time of day. Under TOU plans, electricity is more expensive during peak demand hours, which is usually late afternoon to evening. 

TOU plans mean you could be paying up to three times more per kWh when demand is highest. Shift heavy loads — like laundry or electric vehicle charging — to off-peak windows to shave money off your bill. For example, the SRP TOU plan states that customers on average save 4.8% on their annual electric bill. 

You can check to see if you’ve been default-enrolled into a TOU plan by checking your utility bill. If you’re defaulted in and want to switch back, look for an “opt-out” form or contact customer service  — some utilities let you revert to flat rates within a set window. (If you are a solar customer, many utilities require you to be on a TOU plan.) Opting out might make more sense if you need the most energy during peak high-cost times. However, with many utilities, if you have solar panels, you’re required to be on a TOU plan.

6. Net metering discrepancies

If you have solar panels and your electric bill is still surprisingly high, the cause might be a misunderstanding of your net metering agreement or an issue with your solar system’s actual performance. Net metering allows you to send excess solar power to the grid for credits, but the value of these credits can vary. Some utilities offer full retail rate credit, but many have shifted to “net billing,” where exported energy is valued less than the electricity you buy. 

Additionally, your system’s output can be affected by seasonal changes, unexpected shading, or equipment problems, leading to less self-generated power than anticipated. Increased household energy consumption can also outpace your solar production. 

To address this, carefully review your net metering policy on your utility’s website or DSIRE to understand how credits are calculated and applied. Also, regularly check your solar monitoring system for any production anomalies and compare current energy use to when your system was installed. If discrepancies persist, contact your solar installer for a system check-up to ensure you’re maximizing your solar investment.

Renting? A few extra causes apply to you

If you’re in an apartment or rental unit, some causes of a high electric bill are specific to your situation.

Shared or split meters. Some older buildings split utility costs across units in ways that aren’t proportional to actual use. Ask your landlord how the meter is set up if you’ve never confirmed it.

Landlord-controlled HVAC. In some apartments, thermostat settings or HVAC schedules are managed by the building. If you can’t control when your heat or A/C runs, you’re paying for whatever the building defaults to.

Older insulation and appliances. Rental units frequently have older, inefficient appliances and poor insulation that you can’t upgrade but that drive up your energy use significantly compared to a well-insulated home.

Common area electricity. In some buildings, hallway lighting, laundry machines, or elevator power is billed across tenant accounts. A line item on your bill is the only way to know.

If you’re renting and your bill seems unreasonably high, ask your landlord for a breakdown of exactly how utility costs are calculated and metered in your building.

The most permanent fix for a high electric bill is generating your own power. Homeowners with solar typically cut their utility bills by 50–75%. And once the system is paid off, those savings are all yours.

See what solar would save you → Get a personalized estimate

How to lower your electric bill: practical tips and solutions

With such big chunks of electricity usage accounted for already, you may be wondering how to save electricity elsewhere. 

Here are several ways to reduce your energy bills: 

• Audit your energy usage: A professional energy auditor (sometimes called an “energy rater”) will inspect your home, pinpoint its energy efficiency, and suggest ways to improve it.
• Strategize energy use: If you strategize your energy usage for major appliances like washing machines between peak and off-peak hours, you’re likely to save money. Companies often charge higher rates for electricity during peak periods like 2 PM to 7 PM when more people are using it.  
• Check your filters: Even an up-to-date HVAC system won’t work as well if the filters are dirty. Regularly replacing them can improve the system’s energy efficiency by up to 15%. 
• Upgrade to energy-efficient appliances: You can cut your utility bill by up to 20% by replacing old models with modern, ENERGY STAR–rated appliances. Of course, this depends on how old and outdated your current appliance is.
• Use smart home technology: Devices like smart thermostats, which automatically switch off your heating/cooling system when the room reaches the set temperature,  can save you up to 8% on annual heating and cooling. 
• Fix-up ductwork: Just like poorly insulated houses, leaky ductwork also contributes to increased energy costs. When ducts can’t carry warm or cool air through the home efficiently, the HVAC has to use more energy to keep temperatures comfortable. 
• Don’t run small loads: When you’re able to, wait until your washer or dishwasher is full before running a cycle — this cuts down on extra energy and water use by minimizing the number of loads you run.

Considering renewable energy options

Have you thought about how you can take advantage of renewable energy options, which reduce your carbon footprint? Some of the more common renewables for residential properties include solar, wind, and hydropower. However, one way you can save the most money on your electric bills, in the long run, is by investing in solar power for your home. 

Although the average solar panel system takes 6-10 years to pay off, homeowners can expect to see a 50%-75% reduction in their energy bills. The payoff period and energy bill savings depend on location, usage and net metering policy. However, some people with enough sun access and solar panels can have little or no electric bill.

Find out if solar makes sense for your home → Get estimates from local installers (no contact info required)

Pros of solar power: 

• Low maintenance
• Reduced reliance on the power grid
• Increased home value
• Panels usually last 30+ years
• Reduce personal environmental impact
• Reduction in energy bills
• Tax benefits to reduce installation costs

Cons of solar power:

• If needed, relocation of solar panels is difficult
• Solar storage can be expensive
• Require a lot of roof space
• Upfront costs can be high
• Weather dependent

The one bill you can lock in

Here’s why solar keeps coming up in a summer like this: It’s the rare energy cost you get to fix. Instead of paying whatever your utility decides to charge next year, and the year after, you generate a chunk of your own power at a price you set on day one. As rates keep climbing, that trade gets better.

Most people are already there in their heads. In our 2026 research, 71% of homeowners said they’re at least open to going solar, and 80% see it as a solid, sustainable industry. So, homeowners are interested. What’s holding us back?

So what is the holdup? Trust.

When we asked homeowners what actually stops them from going solar, cost was the number one factor. But, trust came in second. About 36% of homeowners said the trustworthiness of solar companies was a top concern. This means that for a lot of people the nervous part has nothing to do with the panels or the payback math. It’s wondering whether the person at the door is going to be honest with them. Sound familiar?

The encouraging part is that it’s getting better. Across our last three surveys, the share of homeowners who got through their dealings with a solar pro without a bad experience climbed from 20.2% to 29.8% to 34.6%. We track this info every quarter in The Aurora Solar Trust Signal, and the trend has continued for three straight quarters.

See where you land

The national average is one thing. What you probably want to know is how people in your situation actually feel. Well, take a look. Just answer two quick questions (no identifying info or email required) and it shows you how homeowners like you responded in our 2026 survey of more than 1,000 Americans. 

Find yourself in the data (no contact info required) → Get started 

How to find a solar company you can trust

When you’re ready for quotes, the homeowners who felt best about their decision pointed to a few things.

A straight answer on cost was most important. A believable install price, plus a clear look at when the savings start, is what 57% said earned their confidence. If a rep dodges the payback question, that tells you something.

Proof came next. Reviews and testimonials were important for 54% of homeowners, and certifications and technical credentials mattered to the same 54%. Ask for both, and actually read them.

And people wanted numbers they could check for themselves instead of a polished pitch. Clear pricing and real performance data beat charm every time.

“Every homeowner’s situation is different,” said Fox Swim, Senior Solar Industry Researcher at Aurora Solar. “But, I can say that a conversation with a trustworthy solar sales professional should be able to answer these questions.”

Real homeowners bear this out. Kyle, in Arizona, went from a $350 to $400 monthly electric bill to about $30 after adding solar with battery storage, and he says the backup power during grid failures is the part he values most.

Frequently asked questions

How much does 1 kWh of electricity cost?

The average cost of electricity in the U.S. is 16.44 cents per kWh as of February 2025, according to the U.S. Energy Information Administration. Rates vary significantly by state — North Dakota has the lowest at 8.25 cents per kWh, while Rhode Island has the highest at 30.15 cents per kWh.

How often do electricity prices per kWh change?

Electricity prices can change at any time — there is no fixed schedule. Depending on your utility, rate plan, and factors like supply and demand or weather conditions, prices can shift daily, seasonally, or year to year. 

Why are electric rates going up almost every year?

Electric rates rise nearly every year due to a combination of inflation, higher fuel costs, an aging power grid, and increasingly extreme weather patterns driven by climate change — all of which increase the cost of generating and delivering electricity.

Can solar panels lower my electric bill?

Yes — solar panels can significantly reduce or even eliminate your monthly electricity costs by generating power from sunlight rather than drawing from the grid. The amount you save depends on your home’s energy usage, your local utility rates, and the size of your solar system. Aurora’s solar advisors can give you a personalized estimate based on your actual bill.

What uses the most electricity in a home?

Air conditioning accounts for the largest share of home electricity use at 19%, followed by space heating (12%), water heating (12%), refrigerators (8%), and lighting (6%), according to the U.S. Energy Information Administration. Targeting these high-use appliances is the most effective way to reduce your bill.

Why is my electric bill so high this summer?

Mostly two things at once: a heat wave pushing your AC to run nonstop, and electricity rates that now sit near 20 cents per kilowatt-hour (US average), roughly 10% higher than a year ago.

Will solar actually lower my electric bill?

It can, and by a lot, because you generate power at a fixed cost instead of buying all of it at rising utility rates. Kyle in Arizona went from $350 to $400 a month to about $30. Your own results depend on your roof, your usage, and local rates, which is exactly what an estimate sorts out.

Are solar companies trustworthy?

Trust is improving. The share of homeowners reporting no negative experience with a solar pro rose across our last three surveys. It still pays to vet: Look for honest cost and payback numbers, real reviews, and current certifications.

What is The Aurora Solar Trust Signal?

A quarterly read on whether homeowners’ trust in the solar industry is improving, based on their real experiences with solar professionals. You can see how homeowners like you responded right on the page.

What is considered a high electric bill?

The national average runs about 18.83 cents per kWh as of mid-2026, but it varies a lot by state. North Dakota sits at the low end (12.35¢) and Hawaii at the high end (46.62¢). As a rule of thumb, if your per-kWh rate is consistently above your state’s average, or your bill has jumped more than 20% from the same month last year, something has likely changed. The most common culprits are increased HVAC use, a new high-draw appliance, a rate plan change, or a billing error, all covered in detail above.

Why did my electric bill double this month?

A sudden doubling usually has a specific, identifiable cause. The most common: a longer billing period than usual, a catch-up bill after estimated meter reads, being auto-enrolled in a time-of-use rate plan without realizing it, a new appliance drawing more power than expected, or an extended stretch of extreme weather that drove up HVAC use. Start by comparing the number of billing days on this month’s bill to last month’s — that alone often explains a big jump.

Can solar panels really lower my electric bill?

Yes, significantly. Homeowners with solar typically see their utility bills drop by 50–75%, depending on system size, location, and local net metering policy. Some households with enough roof access and a well-sized system end up with little or no monthly electric bill at all. The payback period for a system averages 6–10 years — after which the savings are essentially free for the life of the panels (25–30+ years). Get a free estimate to see what solar could save you specifically.

How do I find out what’s using the most electricity in my home?

The fastest way is a plug-in energy monitor. Devices like the Kill A Watt meter let you plug in individual appliances to see exactly how many watts they draw. For a whole-home view, systems like Sense or Emporia monitor your electrical panel and break down usage by device. A professional energy auditor can do an even deeper analysis and identify building envelope issues like poor insulation that drive up your bills but don’t show up in device-level monitoring.

Sources: The Aurora Solar Trust Signal (quarterly, Dynata, about 1,000 homeowners per wave) and the Aurora Solar Snapshot 2026 (Coleman Parkes, n = 1,112). Electricity-price and heat-wave context from public EIA and BLS data and current reporting, summer 2026.