Every household use to pay money for the electricity. After receiving electric bill we reach to the electricity provider to pay the due amount of the bill. But do you know how is the electric bill calculated? You might say that we pay the bill according to units of electricity that we use. But, do you even know what is an unit of electricity? Is that kWh? Are we paying for every kWh? Then what is the cost of electricity per kWh in your area? Let’s discuss this.
Contents in this article:
- What is kWh?
- Why do we need to pay for electricity?
- On which factors do the cost of electricity depend?
- How much electricity cost per kWh?
- State wise electricity cost in US
What is kWh?
The full form of kWh is Kilo-Watt hour. We know that the electric power has an unit of Watt. 1kW = 1000 Watts. Since, power is multiplied with the time, then kWh is the unit of energy. kWh is actually the unit of electricity that we use. 1 unit of electricity means 1kWh energy. It has other name as Board of Trade unit (BOT unit).
So, 1 kWh is equal to the one unit of electricity which is actually a unit of energy.
1 kWh = 1 BOT = 3.6 × 106 Joule.
Why do we need to pay for electricity?
There is a rule of business that “pay to use something“. Government is also doing a business on electricity.
Government supplies electricity to us and we need to pay for it depending upon the usage of electricity. The electric power generation is costly. Therefore, electricity suppliers need to invest money to develop the mechanism to produce electricity. There are also some losses in electricity while transmitting it which causes extra investments of the providers.
So, the government or power suppliers invest a certain amount of money to produce electricity and transmit it to us. Therefore, they charge us.
On which factors does the cost of electricity depend?
The cost of electricity depends on several factors. Here we have listed a few of those –
- The production cost of electricity.
- Your locality, whether it is rural or urban.
- Whether you are using in house or in a business place.
- The time of usage. Generally it charges lesser at night.
Apart from these, there are some other factors that effect on electricity pricing. But these are mostly applicable for some specific area.
How much electricity cost per kWh?
Now, if you want to calculate the electric bill in a month, you need to calculate how much kWh you have used in that month and how much is electricity cost per kWh.
You can easily calculate the electricity usage of your house or room. But, electricity cost per BOT is not same for users. It varies country wise, state-wise, locality-wise, even it depends of types of customers.
For example: A normal residential person of U.S pays electric bill at the rate of 14.47 cents per kWh while a business customer id U.S pays 11.77 cents per kWh. This data is for the month of June 2022.
I have shared the electricity cost per kWh in some states of United States of America (U.S.A) at below. Check that list to find the electricity cost in your state.
If you do not belong to any of these states, don’t worry. The electricity provider will mention the cost in electric bills. You can get the information of electricity rates from there also.
Electricity cost per kWh by states of US
Here is the cost of electricity per unit in some of the states of USA for the month of March 2022. This data is given by US Energy information Administration (EIA) in June 2022.
|State of USA||Electricity cost per kWh|
|New Jersey||16.93 Cents|
|New Hampshire||22.97 Cents|
|New Mexico||13.44 Cents|
|New York||19.74 Cents|
So, the average electricity cost in California is 26.71 Cents/kWh, in Florida is 13.50 Cents/kWh, in Texas is 12.80 Cents/kWh, New York is 19.74 Cents/kWh and so on for the month March 2022.
California, Hawaii, Texas, Hampshire, New York, Massachusetts, etc. costlier in terms of electric bills and Washington, Idaho, Montana, etc. states are lowest in cost of electricity.
This is all from this article on the cost of electricity per kWh. Hope you have your answer. If not, then you can ask me in the comment section. I will try to inform you as soon as possible.
- Electric Power Formula