Top 7 U.S. States with the Lowest Utility Costs, Check List Here!

If you are wondering about relocating in the U.S. then learning about the Top 7 U.S. States with the Lowest Utility Costs can help you save huge chunks of money. This is specially when utility costs hover near $500 or less. Many U.S. states offer affordable electricity, efficient infrastructure, and smart energy sourcing. There are states having the nation’s lowest electricity rate as well. Delve into the details to know more, in this article.

Aug 10, 2025, 11:50 EDT
Top 7 U.S. States with Lowest Utility Costs
Top 7 U.S. States with Lowest Utility Costs

For people planning to relocate, utilities such as electricity, water, heating, internet are a major recurring expense. Therefore, you must know where in the United States they are most affordable. It will significantly help you in deciding the budgets and choosing the right place to live. Many retirees live on fixed incomes, so finding states with low utility bills can significantly stretch their money. Imagine paying just around $500 a month for all your utility bills, and still having money left over for savings or investments. Keep reading to uncover the full cost-saving list.

Check Out: List of Top 10 Most Solar States in the U.S. with Solar Capacity

List of Top 7 U.S. States with the Lowest Utility Costs

Getting to know the states in the U.S. with the lowest cost of living and utility expenses can help you in determining housing options, and relocation easily. Therefore, we have listed the states in the table below based on official stats from This Old House (citing U.S. EIA) and Axios, showing the average monthly utility cost, implied affordability according to each state:

Rank

State

Avg. Utility Bill (USD/mo)

1

Idaho

$495

2

Utah

$502

3

Iowa

$507

4

West Virginia

$508

5

New Mexico

$517

6

Nebraska

~$1.35/kWh (among lowest)

7

North Dakota

~$0.087/kWh (lowest)

Source: ElectricChoice and This Old House 

Here are the top 7 States in the U.S. which have the lowest utility costs according to recent statistics: 

1. Idaho

Idaho comes at top with the lowest average utility bill at just $495. The state combines a combination of affordable electricity, gas, water, and waste services. This is all because of  available resources and efficient infrastructure.

2. Utah

When it comes to Utah, then the residents pay around $502/month, which benefits from low electricity rates and thoughtful utility distribution. Moreover, this is specifically for electricity averaging just $0.11/kWh.

3. Iowa

At $507/month, Iowa’s utility affordability is backed by various clean energy investments. The state is most notably one of the top states in relying on wind energy according to Axios which helps stabilise the costs even as demand grows.

Check Out: What are the 10 Most Expensive Places to Live in the U.S.? Check List and Data Here!

4. West Virginia

Energy costs in West Virginia are manageable at $508/month. This places the state in among the lowest-utility-bill states despite its climate requirements.

5. New Mexico

New Mexico offers low utility expenses as compared to other states and averages around $517/month. This is specifically with one of the modest costs across electricity, water, and other services as well.

6. Nebraska

Nebraska ranks in the top states all because of its low electricity rate of around 13¢/kWh. This keeps the monthly bills well below national averages, as per ElectricChoice.

7. North Dakota

With the lowest electricity rate nationwide (~8.7¢/kWh), North Dakota consistently offers affordable energy costs year-round.

Conclusion

Therefore, if you're looking to trim your monthly expenses without sacrificing comfort, these seven states offer compelling value. From rural Idaho’s low bills to North Dakota’s rock-bottom energy rates, they demonstrate how geography, infrastructure, and energy sources shape affordability today.

Enter your Blink text here...

Manvi Upadhyaya
Manvi Upadhyaya

Content Writer

    Manvi Upadhyaya is an experienced content writer who is passionate about creating authentic content by delivering credible facts to people. She holds a degree in Journalism and Mass Communication and is fond of art, languages, culture, and education. She has been a published co-author and compiler for many anthology book projects. She creates educational and informative content for international audiences. You can reach out to her at manvi.upadhyaya@jagrannewmedia.com

    ... Read More

    FAQs

    • Do renewable energy sources help reduce utility bills?
      +
      Absolutely. States investing in renewables, like Iowa, often see lower and more stable electricity costs.
    • Are utility costs rising across the U.S.?
      +
      Yes, the average residential electricity prices have increased by over 6% year-over-year. It includes the regional disparities in energy generation and infrastructure investments influencing rates.
    • What is the average U.S. utility bill per month?
      +
      The national average for utilities, including electricity, gas, water, and internet hovers around $590/month.

    Trending Tags