Electricity Rates by County

Why Electricity Rates Matter for Heat Pumps

Your electricity rate is the single biggest factor in how much a heat pump costs to operate. A heat pump in a county paying 10¢/kWh will cost roughly half as much to run as the same system in a county paying 20¢/kWh. This variation across the country is dramatic — rates range from under 6¢/kWh in parts of the Pacific Northwest and rural South to over 30¢/kWh in parts of New England and California.

What Drives the Differences?

Electricity rates depend on the local utility's fuel mix, transmission infrastructure, state regulation, and demand patterns. Counties served by hydroelectric utilities (common in the Pacific Northwest) enjoy some of the lowest rates in the nation. Deregulated markets in the Northeast and Texas can produce both very low and very high rates depending on the provider. Rural electric cooperatives in the Midwest and South typically fall in the middle range.

Heat Pump Economics by Region

In low-rate counties (under 10¢/kWh), heat pumps are exceptionally cost-effective — even a standard-efficiency unit costs less to run than a high-efficiency gas furnace. In high-rate counties (over 20¢/kWh), investing in a high-efficiency heat pump (18+ SEER2) becomes critical to keep operating costs manageable. The payback period for premium efficiency is much shorter when electricity is expensive.

About This Data

Rates shown are residential averages from the NREL/OpenEI Utility Rate Database, aggregated from ZIP-level utility data to the county level using Census ZCTA-to-county crosswalks. Actual rates vary by utility provider, rate plan, and usage tier. Time-of-use rates, demand charges, and seasonal adjustments are not reflected in these averages.