How much did home electricity prices rise in 2026?
EIA's latest data put the U.S. average residential price at 18.31 cents per kWh in July 2026, up 4.9% from a year earlier. What that means for heat pump math.
Published 2 min read
The U.S. Energy Information Administration’s Electric Power Monthly, released on September 24, 2026, puts the average residential electricity price for July 2026 at 18.31 cents per kilowatt-hour. A year earlier, in July 2025, it was 17.45 cents. That is an increase of 4.9%. EIA marks the 2026 figures as preliminary estimates.
How did prices move through 2026?
| Month (2026) | U.S. average residential price, cents per kWh |
|---|---|
| January | 17.45 |
| February | 17.65 |
| March | 18.56 |
| April | 18.83 |
| May | 18.44 |
| June | 18.34 |
| July | 18.31 |
The year’s highest monthly average so far was April, 7.9% above January. Because prices move from month to month, the fairer comparison is the same month a year apart, which gives the 4.9% rise above.
How different are the states?
The national average hides a wide spread. EIA’s state table for July 2026 and July 2025, for the states we checked:
| State | July 2025 | July 2026 | Change |
|---|---|---|---|
| Massachusetts | 30.07 | 30.49 | +1.4% |
| Minnesota | 16.92 | 17.45 | +3.1% |
| Texas | 15.36 | 15.88 | +3.4% |
| Florida | 15.11 | 15.03 | −0.5% |
| Washington | 13.45 | 14.71 | +9.4% |
Prices in cents per kWh. In July 2026, a kilowatt-hour cost about 2.07 times as much in Massachusetts as in Washington. Among these five states, the largest increase was in the cheapest, Washington, and Florida’s price fell slightly.
What about natural gas?
EIA’s monthly residential natural gas price rose from $13.96 per thousand cubic feet in January 2026 to $24.09 in June, a 72.6% increase over five months. Month-to-month changes in residential gas prices are not the same as year-on-year changes, and heating decisions depend mostly on winter prices, so the January figure is the more relevant one for a heating comparison. When we checked, EIA’s monthly residential gas series ran through June 2026.
What does this mean for heat pump costs?
A heat pump’s running cost rises in step with the electricity price, divided by its efficiency. Using the method in our running-cost guide, a heat pump with a seasonal coefficient of performance of 2.2 delivered a million Btu of heat for about $23.27 at January’s national price, and would for about $24.41 at July’s.
Whether a heat pump beats gas depends on both prices in the same winter, and on where you live. Use your own bills: state and utility prices differ from the national average by far more than the year’s change.