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Utility Bills 101: Utilities Tips, Average Costs, Fees, and MoreIf you just moved or are planning a move, it’s important to plan your monthly budget around utility bills. In the US, residents should plan to spend at least $290.79 per month on essential utilities like electricity, natural gas, water, and sewer. Depending on where you live and your container size, you should also budget $25–$100 for trash and garbage collection. Additional utilities include internet ($59.99), phone ($114), and streaming services ($48.25). Of course, climate and energy costs vary from one state to another, so utility bills do too. We looked into the average utility costs in individual states to see just how much they vary. Keep reading to learn more about monthly utility costs and get money-saving tips. How to save money on your utility bills
Before we get into more depth about utilities and how much they cost, here’s a handful of ways to save money on your utility bills every month:
How much does heating and cooling your home cost on average?According to the US Energy Information Administration, the average cost of energy in US households was about $117.46 a month in 20201—with nearly half of that money going to heating and cooling. And the average cost of natural gas to power homes in US households was about $61.69 a month in 2021. While your energy source determines the energy cost you pay, your bill also depends on inflation, geopolitics, and how much energy you conserve. Here are some other important factors to consider:
Heating bill charges and usage vary by utility provider and by region. Here is a sample winter electric bill for two people living in a 1391-square-foot home in Wayne County, Michigan. How to save on heating and cooling costsWhile this energy saver guide goes into more detail about specific ways to save on your heating and cooling costs, we wanted to summarize some top takeaways and provide more context here: 1. Seal air leaksHomeowners can save 10%–20% on heating and cooling bills by sealing air leaks around walls, ceilings, doors, fixtures, switches, electrical outlets, and windows. Take a look at these areas in your home and caulk, seal, and weatherstrip all seams, cracks, and openings to the outside. 2. Insulate your homeProperly insulating your home reduces the heat flow through the parts of the home that separate the interior from the outside. Consider adding insulation between the indoors and outdoors to reduce energy and save money. 3. Adjust your thermostatYou can save up to 10% per year on heating and cooling by turning your thermostat down 7°–10°F for 8 hours a day in the fall and winter.3 4. Get a smart thermostatSmart thermostats allow you to schedule adjustments to your heating and cooling systems and track energy consumption all through a mobile device. Keep in mind that smart thermostats work best in homes with a furnace and/or central air conditioning.4 In 2021, about 40% of U.S. homes had smart thermostats.5 It is worth noting that homeowners should work with thermostat providers to better understand how to program their thermostats for maximum efficiency and with their utilities to stagger scheduling to avoid overwhelming the electrical grid, according to recent findings. Get credit for paying your utility billsIn the past, having good standing with your utility providers and paying all your bills on time hasn’t really mattered in regards to your credit score. Some residents—particularly those with limited or fair credit—benefit from having their utility payment history attached to their financial footprint because it can help give them the leg up they need in the home buying process or even in making upgrades to their home. In 2019, Experian created a free tool called Experian Boost, which connects your utility bills to your checking or savings account (with your permission) and gives you credit for making on-time utility bill payments. With Experian Boost, you can improve your credit score and build a credit history by connecting utility, telecom, and even Netflix bills you pay every month. Learn more about the service or register for your free credit score report. How much does the average electric bill cost?The average monthly electric bill in the US is $117.46. In 2021, the average price per kilowatt-hour (kWh—the unit of measurement for electricity) for the residential US was 11.8 cents.6 Some appliances and electronics use more power than othersIt may come as no surprise that running an electric clothes dryer uses more kWh than charging your mobile phone or using other small electronics. Silicon Valley Power (a municipal utility provider in California) breaks down energy use by appliance.7 Energy use by appliance
Data from Silicon Valley of Power, City of Santa Clara. Last updated January 2022. Access date July 2022. How to save on your average electric billSolar panels can save you money on your electric bill and increase the value of your home. You can actually see for yourself how much money going solar can save you using Google’s Project Sunroof tool. Use a site like Solar Power Authority to find solar companies in your area and compare prices from local solar panel installation experts. Aside from installing energy-efficient, cost-effective systems like solar or geothermal, here are some quick, affordable routes to conserve electricity that your household generates: 1. Use your ceiling fanCeiling fans are cheap to run (around a cent per hour) and can help save energy costs when used with an efficient air conditioner. By using your AC and fan at the same time, you can increase the thermostat by four degrees. 2. Avoid using the oven in the summerCooking with an oven uses more energy than a microwave, air fryer, or grill, and it forces your air conditioner to work harder to keep your home cool during the summer months. 3. Keep shades or blinds closed during the dayAbout 30% of a home's heating energy is lost through windows.8 Keeping your blinds closed during the day, especially when the sun is the brightest, will prevent heat from radiating through the windows. There are also different styles and colors of window coverings that deflect more heat than others. 4. Use a power strip with a switchAppliances in standby mode account for 5% to 10% of residential energy use a year.9 You can use a power strip with a switch to plug in your appliances and flip off the power strip when you’re not using the appliances to help save on your home’s electricity or simply unplug appliances you’re not using. How much is the average natural gas bill?The average monthly cost of natural gas to power homes in US households was about $61.69 a month in 2021, though natural gas costs more in some states than others. Reading your gas bill may feel like reading a science report, so let’s get down to the most important acronym, BTU. It’s short for British Thermal Unit, a unit of energy. Your bill isn’t based strictly on BTUs. You may also see some other items on your gas bill—such as taxes. Check with your local provider for details to see what’s included in your bill. How to save on your gas billAside from fitting your home with one of the smart thermostats we recommended earlier, the best way to save on your gas bill is to regularly replace your air filters and perform annual furnace maintenance. 1. Replace your air filters at least once every one to three monthsYour HVAC’s air filters become dirty and clogged over time, forcing systems to work harder to achieve efficiency. Clean or replace your furnace and air conditioner system's filters once a month to every three months for optimal performance. Replacement can lower your air conditioner's energy consumption by 5% to 15%.10 It’s important to know what size filter you need. Here are some of the most common air filter sizes homeowners use:
2. Clean air conditioner coilsOutdoor condenser coils get dirty over time, so it’s important to remove any dirt or debris that collects. Clean the coils, remove debris, and trim the foliage back at least two feet to allow for adequate airflow. 3. Get annual maintenance for your HVAC systemsThink of your HVAC system as a car. If you wait too long to service your car for regular maintenance, you could be looking at hefty repairs down the road. While it costs from $5,000 to $10,000 to install a new HVAC system, it costs around $75 and $200 per year to ensure the existing appliance is running smoothly.11 Consider getting an annual HVAC maintenance checkup to make sure your systems are efficient and saving you money and headaches in the future. How much does the average water bill cost?The average American water bill is $45.44 per month. And Americans use an average of 82 gallons of water a day at home.12 The best way to see how much water you’re using is to look at the breakdown of charges on your water bill. Here is a guide on how to decipher what each of those charges on your water bill means. America’s water bills have been on the rise for a while. A study in 2019 found that low-income households must now spend an average of 12.4% of their disposable income and/or work 10.1 hours at minimum wage to pay for basic monthly water and sewer services.13 Aside from growing concern over high water bills, water conservation is also an especially timely topic in the US. With droughts and heat waves impacting regions across the US, homeowners are especially interested in ways to save water in states like California, Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. Water charges and usage vary by utility provider and by region. Here is a sample water bill from two people living in a 1,900-square-foot home in Salt Lake City, Utah. How to save on your water billIf you’re looking to combat water costs, pay special attention to appliances that use more water than others and identify what is necessary for water use. 1. Fix leaksThe average family can waste 180 gallons per week, or 9,400 gallons of water annually, from household leaks.12 The most common leak culprits are the kitchen and bathroom faucet, shower hose, toilet flapper, hot water tank, and supply line. Check out this plumbing repair cost guide for the most common household leaks and how much goes into a repair. 2. Replace fixtures with WaterSense productsThe average family can save more than $380 annually from retrofitting with WaterSense-labeled fixtures and ENERGY STAR-certified appliances.12 Here are some more facts on savings from WaterSense-labelled products:
3. Turn off the tap while you brush your teethThis age-old water-saving tip may not sound like much, but apparently, turning off the tap while brushing your teeth can save eight gallons of water per day.12 4. Collect rainwater for your landscape needsDepending on the region, homeowners use between 30% and 70% of their water outdoors.14 It may seem like a no-brainer, but you can use water that collects on your roof or other catchment areas to water your lawn or clean your car. You’ll need a barrel, which will run you $50–$200 from your local hardware store or online, and to follow some simple rainwater harvesting tips. 5. Water lawns early morning and after the sun goes downIt's best to water lawns and landscapes early in the morning and when the sun goes down in the evening. Watering during this time prevents evaporation during the hottest parts of the day. Other watering tips:
What about the average sewer bill?The average US sewer bill is $66.80 a month. The reason it ranges depends on your water and wastewater utilities and the source of your water. An estimated 283 million people rely on public-supply water for their household use.15 Homeowners pay a monthly bill that covers the cost of the water and draining that water into the public sewer. Depending on where you live, you may be billed for water usage and wastewater treatment separately. Sometimes you’ll even see water, sewage, and trash all on the same bill with one monthly fee. Homeowners who rely on well and septic systems (15% of the US population),16 however, pay for the well and septic to be drilled, inspected, maintained, and, in the case of septic, emptied regularly. This means they don’t get a monthly water or sewer bill. According to recent findings from a Bluefield Research that surveyed 50 utilities in the US, combined household water and wastewater bills have increased an average of 4.2% per year over the past 9 years.17 The study also found that utilities are trying to balance water affordability with the cost of operating water and wastewater systems by using tiered pricing to make water use less costly. Ways to save on sewer charges:
What is the average trash collection bill?The average homeowner typically pays between $25 to $100 per month for residential trash and garbage collection services, depending on the location and size of the container.20 One of the easiest ways to get rid of belongings in your home is to reach out to a junk removal company, which donates and recycles things like furniture and appliances that may be of use to others. For information on junk removal options and costs, check out our article on the average cost of junk removal. You can also donate items to various charities for reuse. What about recycling?Roughly half of Americans have access to curbside recycling, and those that do are charged about $4 per month for the service.21 The national recycling rate is 34.7%.22 Recycling varies by city, county, and state, and there’s long been an overemphasis on consumers’ responsibility to recycle, though the process is anything but simple. Only 9% of plastic is recycled.23 Not to mention that the recycling industry has dramatically declined since the plastic import halt in 2018. Many communities choose landfills over recycling for cost, convenience, and environmental reasons (while recycling has a lower carbon footprint and greenhouse gas emissions than landfills and burning, energy and resources still vary by recycled material). Here are some things you can recycle:24
How to reduce your trash bill
The best way to reduce what you spend on trash collection is to reduce your waste. Here are some tips on how to reduce your trash:
What is the average internet bill?The average internet bll is around $59.99 per month. The monthly cost of your internet will vary widely based on connection type and speed. Slow dial-up connections cost as little as $10 per month, but the fastest fiber optic connections can cost up to $150 each month.25 How to save on your internet billSimilar to paying for channels you don’t watch, it’s possible you could be paying for internet you don’t use. If that’s you, consider reducing your internet speed or lowering your data usage. According to Reviews.org, other ways to save on your internet bill include:
Find internet prices for your new home
How much is the average phone bill?The average phone bill in the US is $114,26 but you can expect to pay as little as $60 for a single line per month to $240 per month for a family of four.27 Nearly half of Americans think they are paying too much for cell phone service, and 73% worry that phone rates will rise, according to a recent WhistleOut survey. So, you’re not alone if you think your phone bill is too high. How to save on your cell phone billThe best way to save money on your cell phone bill is to keep an eye on each mobile carrier’s promotions. You’ll often see promotions advertising discounted prices on phone plans (and even new smartphones) if you add an extra line to your plan or switch carriers. If you aren’t concerned about using a lot of mobile data each month, a prepaid mobile plan may be right for you. Prepaid plans are often less expensive than standard postpaid plans, and many of the major mobile carriers have prepaid plan options to choose from. What is the average cost of streaming services?
The average cost Americans pay for streaming services is $48.25. There are over 100 streaming TV services available, from on-demand streaming (Netflix, Hulu, and Prime Video) to TV streaming platforms (Hulu + Live TV, Sling TV, and YouTube TV) to network-owned streaming apps (HBO Max, ESPN+, and Peacock). Streaming accounts for nearly 33.7% of total television consumption.28 According to Reviews.org, nearly 54% of Americans are still paying for cable television (roughly $79 a month), often in addition to their streaming service bills. To learn more about what to look for in a streaming service, what you’ll pay, and what are the best providers out there, take a look at this article on the best streaming services. And if you’re looking for ways to save on your streaming costs, check out these 10 helpful tips. Average monthly utility costs by stateNow that we’ve discussed the national averages for utility expenses and how to save money on your utility bills, let’s talk about how much utilities cost per month in different states. States with the least expensive utilities1. Utah: $344.93Utah residents have paid some of the lowest utility costs in the country for years. Dominion Energy provides natural gas to about 90% of the population, and Rocky Mountain Power supplies electricity to more than 80%. Between policymakers, regulators, and gas and electric utility companies, the state has been consistent in keeping energy prices affordable for homeowners and other residents. 2. Idaho: $350.25Idaho residents enjoy the lowest average electricity price of any state, partially because a lot of its electricity comes from hydropower, which accounted for 51% of the state's generation in 2021.29 Idaho’s other renewable energy sources include solar and wind energy to power homes. Idaho ranks as one of the best states for energy overall. 3. Colorado: $355.83About 7 out of 10 Colorado households use natural gas as their primary home heating source, which makes sense given it has the seventh-largest natural gas reserves of any state.29 While water utility bill costs in Colorado are in line with the rest of the country, there has been growing concern over the state’s water resources and an increase in wildfires. Colorado also has one of the highest monthly averages for streaming services ($50). 4. New Mexico: $359.48Not even one year ago, New Mexico was number one on our list for the lowest utility costs in the US. Rising energy costs have been a recent concern for many New Mexicans, while others continue to look to the future of renewable energy with initiatives like the Energy Transition Act. 5. Montana: $360.27Montana's extreme temps and small population (1.062 million) contribute to the state's residential sector being the second-highest per capita energy consumption of any state besides North Dakota. About half of Montana households use natural gas as their primary energy source for home heating. The state also has the largest single underground natural gas storage site in the US.29 Montana ranks as one of the best states for energy overall but one of the top states for slowest internet with the highest costs. 6. Wyoming: $366.07Wyoming is a national leader in energy production from coal, uranium, natural gas, and crude oil. Not only does Wyoming make our list for the least expensive utility bills, but its residents also enjoy one of the lowest costs of living of Rocky Mountain states and no state income tax. It’s a shame not many American homeowners get to enjoy these benefits, as the state has the smallest population in the US, aside from Alaska. Internet speeds in Wyoming do seem to run pretty slow and at a higher cost. 7. Maine: $375.59The easternmost state of the US is known for its plethora of forests and for having some of the coldest winters. While three-fifths of Maine's households use fuel oil as their primary energy source for home heating—a larger share than any other state—most of Maine's electricity comes from renewable resources, mostly from hydroelectric dams, wind turbines, and wood and wood-derived fuels.29 Maine was on our most expensive utilities list not even a year ago, and many contribute this major win to its recent expansion of renewable energy. 8. Iowa: $376.026 out of 10 households in the Hawkeye State use natural gas as their primary heating fuel. The windy farmland was responsible for producing 58% of Iowa’s total electricity, the largest wind power share of any state.29 Aside from low utility bills, the state enjoys being 9% below the national average in costs of living. 9. Michigan: $376.11Michigan jumped from the middle of our list from last year (#30) to a spot here in the top 10 due to its decrease in energy bills. Along with some of the best utility bills in the country, Michigan enjoys a cost of living that is 9% below the national average. When it comes to the cost of water, however, the Great Lakes State hasn’t always had a great track record. A recent report finds that the rising cost of water and sewer service in Michigan is consuming a larger share of household income. 10. Illinois: $376.80The most populous state in the Midwest barely made it into our top 10, but we’re happy to welcome it aboard as a state with some of the lowest utility bills. Fun fact: about 95% of Illinois households use electric air conditioning, but only one in six Illinois households rely on electricity for home heating. (Almost 8 in 10 Illinois households use natural gas for heating).29 The Land of Lincoln also enjoys a low cost of living, among other things. States with the most expensive utilities1. Hawaii: $611.87While Hawaii is known for its incredible beaches and laid-back lifestyles, it costs the average islander a pretty penny to live there and afford utilities, food, and housing. Hawaii has the highest electricity price, nearly triple the US average rate, and the state relies on imported petroleum for 60% of its electricity generation.29 In just one year, Hawaii pushed out Connecticut as the state with the most expensive utilities. 2. Connecticut: $462.62We’re sorry, Connecticut, but we’ve saved a spot for you as the runner-up on our most expensive utilities list. The average electric bill squeaks close behind Hawaii’s average electric bill at $161.55. It’s hard for the state to point to a single reason why Connecticut homeowners face astronomical electric bills, but lawmakers are looking to create more measures to scrutinize utility companies. 3. Alabama: $439.16Alabama’s hot summers account for some of the highest electricity bills in the country, where 7 out 10 Alabama residents rely on electric energy to power their homes.29 Alabama took the eleventh spot on our list last year. While their average electric and natural gas bills decreased, other states experienced more drastic decreases. 4. Georgia: $438.18Georgia has some of the highest average electric ($129.92), natural gas ($85.88), and streaming service ($50.75) bills in the country. Luckily though, Georgians enjoy a lower cost of living, which is, on average, 50.38% lower than the national average. 5. Arizona: $436.05Arizona made a dramatic ascension from #32 on our list of monthly utility averages. Arizonans saw an increase in their average natural gas bill from $37.00 to $78.22. Arizona also has some of the highest water bills in the country. 6. Massachusetts: $433.30Massachusetts makes a comeback on our list of the most expensive monthly utility bills. The number of residents who have been scrambling to keep up with high costs is worrisome. A recent report finds that 794,947 Massachusetts residential customers owe nearly $674.7 million in electric and gas bills. 7. Rhode Island: $432.18Rhode Island also makes a comeback to this list. While it doesn’t have the highest average bill for any single utility, each of the bills we checked was among the highest in the US. Who would have thought that the smallest state would have some of the biggest utility prices? 8. New Hampshire: $421.84New Hampshire made our list for the most expensive monthly utilities two years in a row. New England relies heavily on natural gas, and like many of the states in the country, New Hampshire is taking a heavy hit along with the rest of the global market. 9. South Carolina: $418.23At $138.16 a month, South Carolina’s average electricity bill is one of the highest in the nation. Like a few other states in our top ten, South Carolina has a hot climate that necessitates a lot of AC, which contributes to these hefty bills. 10. Texas: $415.41Everything is bigger in Texas, as they say, including monthly utility bills. Texans remember the 2021 winter storm, where millions were without electricity and many homeowners found themselves with astronomical electric bills. There are many reasons Texas residents are facing high utility costs, including a volatile deregulated electric market, extreme weather, and demand from a growing population. Joe Roberts contributed to this article. MethodologyFor energy bill costs, we pulled the average electricity consumption figures and pricing information from the U.S. Energy Information Administration.30 For natural gas bill costs, we pulled the average rate per 1,000 cubic feet for 2021 from the U.S. Energy Information Administration31 and assumed each household used 168 cubic feet a day. We used a national average where natural gas data isn't available (Arkansas, California, Florida, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Minnesota, Mississippi, Nebraska, New Mexico, New York, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin). We used Bluefield Research’s17 average monthly household water and wastewater bill for 2021 for each state. Our data about the average cost of streaming services come from a survey conducted by Reviews.org.32 The sum of these utilities makes up our averages for each state’s total utility costs per month. States were ranked solely based on how much these utilities cost their residents each month on average. Other factors were not considered for our rankings. While we included trash collection20 in the estimated US total average, we did not use it in our state rankings. Rankings and full data set
Written by Sarah Cimarusti Sarah Cimarusti has been writing and editing for the last 10 years. Most recently she was a lead copywriter for catering and event companies, and before that she was the editor of two nationally known trade publications. She brings her passion and content creation expertise to help movers and shakers get where they want to be. She earned dual degrees in English and social work from Loyola University Chicago. In her free time, she writes fiction and spoils her dog, Maya. Is 2000 kWh a month a lot?How much electricity does the average person use per month? According to the U.S. Energy Information Administration, the average U.S. person consumed approximately 877 kWh per month in 2019, but it can vary from anywhere between 700 and 2000 kWh depending on the size of your property and your daily habits.
How much electricity does a single person use?With an average electric bill of $117.65/month and an average household occupancy of 2.63 people in the United States, you can determine that the average electricity cost for one person in the United States is $44.73/month.
What is the average electric bill for a 1 bedroom apartment in Texas?The average electric bill for a 1 bedroom apartment in Texas is in the range of $105-$120 per month. Some renters mention electricity bills under 500 kWh with less air conditioning, while careless usage can easily lead to power bills above 1,000 kWh.
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