Business Electricity Rates
- The average U.S. commercial rate is 13.51¢/kWh — 28% below residential rates.
- A typical small business pays ~$862/month — over $31,032+ across a 3-year term.
- Many businesses qualify for custom rates — comparing suppliers can save 15–30%.
Check electric rates in your area
Real-time rates and plans for businesses.
| State ▲ | Rate (¢/kWh) ▲ | vs. National Avg | Market |
|---|---|---|---|
| North Dakota | 7.44¢ /kWh | 45% below avg | Regulated |
| Idaho | 8.19¢ /kWh | 39% below avg | Regulated |
| Nebraska | 9.58¢ /kWh | 29% below avg | Regulated |
| Virginia | 9.73¢ /kWh | 28% below avg | Limited |
| Utah | 9.81¢ /kWh | 27% below avg | Regulated |
| Oklahoma | 10.08¢ /kWh | 25% below avg | Regulated |
| Wyoming | 10.12¢ /kWh | 25% below avg | Regulated |
| Washington | 10.14¢ /kWh | 25% below avg | Regulated |
| Louisiana | 10.46¢ /kWh | 23% below avg | Regulated |
| Oregon | 10.52¢ /kWh | 22% below avg | Limited |
| Texas | 10.56¢ /kWh | 22% below avg | Deregulated |
| Nevada | 10.93¢ /kWh | 19% below avg | Limited |
| Kentucky | 11.04¢ /kWh | 18% below avg | Regulated |
| North Carolina | 11.10¢ /kWh | 18% below avg | Regulated |
| Arkansas | 11.22¢ /kWh | 17% below avg | Regulated |
| Montana | 11.48¢ /kWh | 15% below avg | Regulated |
| West Virginia | 11.55¢ /kWh | 15% below avg | Regulated |
| Missouri | 11.60¢ /kWh | 14% below avg | Regulated |
| South Carolina | 11.68¢ /kWh | 14% below avg | Regulated |
| South Dakota | 11.74¢ /kWh | 13% below avg | Regulated |
| Tennessee | 11.85¢ /kWh | 12% below avg | Regulated |
| New Mexico | 12.05¢ /kWh | 11% below avg | Regulated |
| Illinois | 12.17¢ /kWh | 10% below avg | Deregulated |
| Georgia | 12.20¢ /kWh | 10% below avg | Regulated |
| Pennsylvania | 12.24¢ /kWh | 9% below avg | Deregulated |
| Mississippi | 12.32¢ /kWh | 9% below avg | Regulated |
| Arizona | 12.38¢ /kWh | 8% below avg | Regulated |
| Florida | 12.51¢ /kWh | 7% below avg | Regulated |
| Ohio | 12.67¢ /kWh | 6% below avg | Deregulated |
| Colorado | 12.84¢ /kWh | 5% below avg | Regulated |
| Kansas | 12.93¢ /kWh | 4% below avg | Regulated |
| Delaware | 13.05¢ /kWh | Near average | Deregulated |
| Minnesota | 13.16¢ /kWh | Near average | Regulated |
| Indiana | 13.44¢ /kWh | Near average | Regulated |
| Iowa | 13.60¢ /kWh | Near average | Regulated |
| Alabama | 13.67¢ /kWh | Near average | Regulated |
| Wisconsin | 13.88¢ /kWh | Near average | Regulated |
| Maryland | 14.17¢ /kWh | 5% above avg | Deregulated |
| Washington DC | 14.28¢ /kWh | 6% above avg | Deregulated |
| Michigan | 14.51¢ /kWh | 7% above avg | Limited |
| New Jersey | 15.92¢ /kWh | 18% above avg | Deregulated |
| Maine | 17.62¢ /kWh | 30% above avg | Deregulated |
| Vermont | 18.90¢ /kWh | 40% above avg | Regulated |
| New York | 19.44¢ /kWh | 44% above avg | Deregulated |
| New Hampshire | 19.78¢ /kWh | 46% above avg | Deregulated |
| Rhode Island | 21.35¢ /kWh | 58% above avg | Deregulated |
| Connecticut | 22.10¢ /kWh | 64% above avg | Deregulated |
| Alaska | 22.41¢ /kWh | 66% above avg | Regulated |
| Massachusetts | 23.87¢ /kWh | 77% above avg | Deregulated |
| California | 25.64¢ /kWh | 90% above avg | Limited |
| Hawaii | 38.79¢ /kWh | 187% above avg | Regulated |
Live Commercial Rates in Texas
Real-time energy-only rates from licensed providers in the Texas deregulated market. Delivery charges are separate and set by your utility.
Rates do not include delivery charges, demand charges, or applicable fees. Enter your ZIP code to see all-in pricing.
Rate Map
Commercial electricity rates visualized. Hover or tap a state to see its rate. Lighter shades indicate lower rates.
Commercial Rates Over Time
National average commercial electricity rate from 2018 to 2026. Rates are up 27% since 2018.
Load Factor & Demand Charges
Demand charges are 30–70% of a large commercial bill. Load factor determines how much you pay. Calculate yours →
Anatomy of a Commercial Electric Bill
Most commercial bills have four or five line items that matter. Everything else is taxes and riders.
Energy Charges
Your total kWh multiplied by the supply rate. This is the part you can shop for in deregulated states. Fixed-rate contracts lock this number in for 1–3 years.
Demand Charges
Your single highest 15-minute power draw in the billing period, multiplied by the demand rate (typically $8–15/kW). One bad spike sets your cost for the entire month.
Transmission & Distribution
What the utility charges to move power from the plant to your meter. Regulated and non-negotiable — the same for everyone in your service territory.
Taxes, Riders & Fees
State and local taxes, renewable energy surcharges, nuclear decommissioning fees, system benefit charges. Generally small relative to energy and demand.
| Business Type | Typical Monthly kWh | Est. Monthly Bill |
|---|---|---|
| Small office (1,500 sq ft) | 1,500 – 2,500 | $212 – $353 |
| Retail store | 3,000 – 6,000 | $424 – $847 |
| Restaurant | 4,000 – 8,000 | $565 – $1,130 |
| Grocery store | 15,000 – 40,000 | $2,118 – $5,648 |
| Office building (10,000 sq ft) | 10,000 – 20,000 | $1,412 – $2,824 |
| Warehouse / distribution | 20,000 – 50,000 | $2,824 – $7,060 |
| Manufacturing facility | 50,000 – 500,000 | $7,060 – $70,600 |
| Data center | 500,000 – 5,000,000+ | $70,600 – $706,000+ |
Types of Commercial Electricity Plans
Businesses in deregulated markets can choose from four main plan structures, each designed for different operational needs and risk tolerances.
Fixed-Rate Plans
Lock in a consistent ¢/kWh rate for 6 to 60 months. Your energy rate stays the same regardless of market fluctuations, providing budget certainty and protection from price spikes.
Variable / Index Plans
Your rate floats with the wholesale market, usually updated monthly. Can be cheaper in mild months, but you're exposed to spikes during summer peaks and winter storms — rates can surge 3–5x.
Block & Index Plans
A hybrid: you fix a price for a predetermined block of expected monthly usage. Consumption above the block is priced at the floating wholesale rate. Balances cost certainty with market upside.
Time-of-Use Plans
Rates vary between peak and off-peak hours — often 30–50% cheaper during nights, weekends, and holidays. Rewards businesses that can shift operations to off-peak windows.
Frequently Asked Questions
Which state has the cheapest business electricity?
North Dakota has the lowest average commercial rate at 7.44¢/kWh. Among deregulated states where businesses can shop for providers, Texas offers some of the most competitive rates with energy-only pricing from 4.31¢/kWh.
Can my business choose its electricity provider?
14 jurisdictions offer full commercial electricity choice: Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Washington DC. Another 5 states offer limited or C&I-only choice: California, Michigan, Nevada, Oregon, Virginia. In full-choice states, businesses typically save 10–25% on the supply portion of their bill.
What is load factor and why does it matter?
Load factor is the ratio of your average electricity demand to your peak demand: total kWh / (peak kW × hours in billing period). A higher load factor means steadier usage, which makes your business more attractive to providers and earns lower per-kWh rates. Improving load factor by 10 points can cut your bill by 8–15%. Calculate your load factor →
How do demand charges work?
Your utility records your highest 15-minute power draw each month. That single peak (in kW) gets multiplied by the demand charge rate (typically $8–15/kW). One bad spike sets your charge for the entire month. Demand charges represent 30–70% of a large commercial bill. If your monthly bill is over $1,000–2,000, you almost certainly have demand charges.
How can my business lower its electricity costs?
The highest-impact strategies: 1) In deregulated states, compare providers — switching alone saves 15–30%. 2) Manage peak demand to reduce demand charges. 3) Improve load factor by spreading consumption more evenly. 4) Invest in energy efficiency (LED lighting, HVAC optimization). 5) Start shopping 60–90 days before contract expiration to avoid expensive holdover rates.
Why are commercial electricity rates lower than residential?
Businesses pay less per kWh (13.51¢ vs. 18.83¢ nationally) for three reasons: higher volume consumption, more predictable usage patterns, and higher voltage delivery requiring less transformation. The national commercial rate is 28% lower than residential.