Small business electric bill basics
The U.S. average business electricity price in 2025 was 13.41 cents per kWh against 17.30 for homes. Every one of the 51 places (50 states and DC) has a business price below its home price.
Three kinds of customer
EIA sorts customers into residential, commercial and industrial. Small businesses are usually billed in the commercial class. The exact class rules are in each utility's tariff, and we have no data on them. In 2024 the EIA retail sales file counts 19,480,886 commercial accounts with 1,450,941 million kWh sold, which averages 6,207 kWh per account per month. That average includes very large buildings, so a small shop may use far less.
EIA says retail prices are usually highest for residential and commercial consumers because it costs more to distribute electricity to them, while industrial customers use more electricity and often take it at higher voltage, so their price is generally close to the wholesale price.
Why the price is one number and the bill is several
A commercial bill often has an energy charge, a customer charge and a demand charge. The average price in our tables is revenue divided by kWh, so it already includes any demand charge. That means a business with a high peak and low use can pay far more per kWh than the state average, and a business with steady use can pay less. EIA's glossary defines a demand charge as "that portion of the consumer's bill for electric service based on the consumer's maximum electric capacity usage and calculated based on the billing demand charges under the applicable rate schedule".
Our kW and demand charge guide explains kW against kWh. Here is a different small example with our own round numbers.
| Our scenario | Peak demand | Assumed demand rate | Demand part of the bill |
|---|---|---|---|
| Before | 25 kW | $11.00 per kW | $275.00 |
| After staggering the big loads, peak cut by 5 kW | 20 kW | $11.00 per kW | $220.00 |
| Difference, per month | 5 kW | $55.00 |
Round numbers for illustration. The demand rate is assumed: EIA does not publish demand rates in the data we use, and tariffs differ by utility.
The saving came from the peak, not from the energy used. Ways to lower a peak are in the guide. We have no data on how many business rates carry a demand charge or what they cost, so we cannot say how much a typical shop pays.
Business and home prices by state
Business prices run from 7.40 cents in North Dakota to 36.37 cents in Hawaii. Relative to home price, the business price is highest in Tennessee (98% of the home price) and lowest in Texas (56%).
United States, Business price over home price, highest and lowest five states, 2025: EIA retail sales.
CSVU.S. average electricity price, business and home, 2010 to 2025, 2010 to 2025: 16 rows
| Year | Home | Business |
|---|---|---|
| 2010 | 11.54 | 10.19 |
| 2011 | 11.72 | 10.24 |
| 2012 | 11.88 | 10.09 |
| 2013 | 12.13 | 10.26 |
| 2014 | 12.52 | 10.74 |
| 2015 | 12.65 | 10.64 |
| 2016 | 12.55 | 10.43 |
| 2017 | 12.89 | 10.66 |
| 2018 | 12.87 | 10.67 |
| 2019 | 13.01 | 10.68 |
| 2020 | 13.15 | 10.59 |
| 2021 | 13.66 | 11.22 |
| 2022 | 15.04 | 12.41 |
| 2023 | 16.00 | 12.59 |
| 2024 | 16.48 | 12.75 |
| 2025 | 17.30 | 13.41 |
16 rows from EIA retail sales.
CSV| State | Business price 2025, cents per kWh | Home price 2025, cents per kWh | Business price over home price | Average kWh per business account a month, 2024 |
|---|---|---|---|---|
| North Dakota | 7.40 | 11.81 | 63% | 12,209 |
| Texas | 8.64 | 15.47 | 56% | 8,790 |
| Nebraska | 8.79 | 12.34 | 71% | 6,649 |
| Oklahoma | 9.08 | 13.12 | 69% | 7,095 |
| Idaho | 9.25 | 11.82 | 78% | 4,681 |
| Nevada | 9.36 | 13.15 | 71% | 6,685 |
| Wyoming | 9.54 | 13.38 | 71% | 7,452 |
| Virginia | 9.55 | 15.28 | 63% | 14,715 |
| Utah | 10.04 | 13.07 | 77% | 8,073 |
| North Carolina | 10.25 | 14.02 | 73% | 5,495 |
| Oregon | 10.56 | 15.37 | 69% | 8,307 |
| Missouri | 10.63 | 13.49 | 79% | 6,100 |
| Arkansas | 10.76 | 12.84 | 84% | 4,745 |
| South Dakota | 10.89 | 13.38 | 81% | 5,441 |
| Washington | 10.95 | 13.11 | 84% | 6,806 |
| Iowa | 11.05 | 13.72 | 81% | 4,243 |
| South Carolina | 11.05 | 14.96 | 74% | 5,303 |
| Louisiana | 11.20 | 12.57 | 89% | 6,542 |
| New Mexico | 11.23 | 15.08 | 74% | 5,398 |
| Kansas | 11.35 | 14.56 | 78% | 5,367 |
| Florida | 11.47 | 15.24 | 75% | 6,315 |
| Georgia | 11.50 | 14.73 | 78% | 7,426 |
| Ohio | 11.60 | 16.96 | 68% | 6,749 |
| West Virginia | 11.75 | 15.41 | 76% | 4,202 |
| Kentucky | 11.88 | 13.24 | 90% | 5,170 |
| Montana | 11.88 | 12.98 | 92% | 3,397 |
| Minnesota | 12.27 | 15.82 | 78% | 6,070 |
| Pennsylvania | 12.44 | 19.30 | 64% | 4,337 |
| Arizona | 12.47 | 15.32 | 81% | 8,634 |
| Colorado | 12.47 | 15.85 | 79% | 4,349 |
| Delaware | 12.64 | 17.13 | 74% | 5,883 |
| Tennessee | 12.87 | 13.18 | 98% | 5,525 |
| Mississippi | 13.03 | 14.03 | 93% | 4,785 |
| Wisconsin | 13.06 | 18.16 | 72% | 5,255 |
| Illinois | 13.07 | 17.69 | 74% | 5,904 |
| Indiana | 13.88 | 16.23 | 86% | 5,261 |
| Michigan | 14.48 | 20.01 | 72% | 5,490 |
| Alabama | 14.52 | 16.10 | 90% | 4,886 |
| Maryland | 14.74 | 19.48 | 76% | 8,852 |
| New Jersey | 16.63 | 22.63 | 73% | 5,721 |
| Vermont | 19.92 | 22.92 | 87% | 2,530 |
| New Hampshire | 20.16 | 24.56 | 82% | 3,047 |
| District of Columbia | 20.41 | 21.94 | 93% | 21,781 |
| Maine | 20.96 | 27.78 | 75% | 3,089 |
| New York | 21.07 | 26.39 | 80% | 5,088 |
| Alaska | 22.32 | 26.09 | 86% | 3,806 |
| Massachusetts | 23.08 | 30.48 | 76% | 4,469 |
| Connecticut | 23.11 | 29.38 | 79% | 6,198 |
| Rhode Island | 23.46 | 29.46 | 80% | 4,878 |
| California | 26.36 | 32.54 | 81% | 5,398 |
| Hawaii | 36.37 | 40.59 | 90% | 3,954 |
Source: EIA retail sales, 2025 (price = revenue divided by kWh, so any demand charge is inside the business figure) and 2024 sales and accounts for average use. Sorted by business price. CSV, 51 rows.
A scenario for a small shop
Say a shop uses 1,500, 3,000 or 6,000 kWh a month. At each state's average 2025 business price, the energy part of the bill would be as below. Real bills add the customer charge, taxes and any demand charge, and prices differ by utility and rate.
| State | Business price 2025, cents per kWh | 1,500 kWh a month | 3,000 kWh a month | 6,000 kWh a month |
|---|---|---|---|---|
| Texas | 8.64 | $130 | $259 | $518 |
| California | 26.36 | $395 | $791 | $1,582 |
| New York | 21.07 | $316 | $632 | $1,264 |
| Florida | 11.47 | $172 | $344 | $688 |
| Washington | 10.95 | $164 | $328 | $657 |
| Ohio | 11.60 | $174 | $348 | $696 |
Source: Our scenario: three round monthly use levels at each state's average 2025 business price, EIA retail sales, 2025; energy only, no fixed charges, taxes or demand charges. Not a quote. Retrieved 2026-10-02. CSV, 51 rows.
Business prices changed over ten years too. From 2015 to 2025 the largest rise was District of Columbia at 70% and the smallest was North Dakota at down 16%, nominal.
Checklist for the bill
1. Find your rate class on the bill. 2. Find the kWh, the kW peak (if shown) and the dates it was set. 3. Divide the total by kWh and compare that cost per kWh with the state average here. If it is far above, the peak or the fixed charges may be the reason. 4. Ask the utility whether another rate plan fits your hours, such as a time-of-use plan; see the smart meter and time-of-use ranking. 5. If the bill looks wrong, see how to dispute a bill. This is our suggestion, not a rule.
What this page cannot tell you
We have no data on small-business tariffs by utility, on demand charge rates, on how many commercial accounts have demand meters, or on the mix of business types. We have no median commercial use, only the average. Look up your utility's tariff on its site or your commission's site for the actual rate. Terms are in the glossary. Sources are on the data sources page.
Key facts and where they come from
| Fact | Value | Source | Date |
|---|---|---|---|
| U.S. business price 2025 | 13.41 cents per kWh | EIA retail sales, 2025 | 2025 annual |
| U.S. home price 2025 | 17.30 cents per kWh | EIA retail sales, 2025 | 2025 annual |
| Places (50 states and DC) with a business price below the home price | 51 of 51 | EIA retail sales, 2025 | 2025 annual |
| Places with a business price at or above the home price | 0 of 51 | EIA retail sales, 2025 | 2025 annual |
| Highest business price: Hawaii | 36.37 cents per kWh | EIA retail sales, 2025 | 2025 annual |
| Lowest business price: North Dakota | 7.40 cents per kWh | EIA retail sales, 2025 | 2025 annual |
| Commercial accounts, U.S. | 19,480,886 | EIA retail sales | 2024 annual |
| Commercial sales, U.S. | 1,450,941 million kWh | EIA retail sales | 2024 annual |
| Average use per commercial account | 6,207 kWh a month | Computed from the two lines above | 2024 |
| Definition of demand charge | Part of the bill based on maximum capacity usage | EIA Energy Glossary, eia.gov/tools/glossary | retrieved 2026-10-02 |
| Why industrial prices are lower | Higher voltage and more use make delivery cheaper | EIA Electricity explained, Factors affecting prices | retrieved 2026-10-02 |
| Our scenario: 25 kW peak at an assumed $11 per kW | $275.00 a month demand part | Assumed rate, illustration only | scenario |
| Our scenario: peak cut by 5 kW | $55.00 a month lower | Computed from the line above | scenario |
Keep reading
Questions
What is the average business electricity price?
13.41 cents per kWh in 2025, against 17.30 for homes (EIA retail sales).
Which state has the highest business price?
Hawaii, at 36.37 cents per kWh in 2025.
Is the business price higher than the home price?
In 51 of the 51 places (50 states and DC) it is below; in 0 it is at or above.
What is a demand charge?
EIA's glossary: the part of the bill based on the consumer's maximum electric capacity usage under the rate schedule. In our scenario, 25 kW at an assumed $11 per kW is $275.00 a month.
Does the average price include demand charges?
Yes. EIA's average price is revenue divided by kWh, so any demand charge is inside it.
How much does a typical business use?
The average commercial account used 6,207 kWh a month in 2024. That includes very large buildings. We have no median.
Why are industrial prices lower?
EIA says industrial customers use more electricity and can take it at higher voltages, so supply is more efficient and the price is generally close to the wholesale price.
Where do I find my exact rate?
In your utility's tariff for your rate class, on its site or your commission's. This site shows state averages only.