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Tennessee Electricity Prices

Average retail price by sector.

Residential
14.07¢ /kWh
▲ 1.8%vs. last year
Commercial
13.94¢ /kWh
▲ 4.1%vs. last year
Industrial
6.87¢ /kWh
▼ 4.8%vs. last year

Data current through June 2026 — the latest available from the U.S. EIA, which publishes monthly figures on a roughly two-month delay.

Average monthly bill

Full bill breakdown →
$163per month▲ 6.6% vs. the year before

13.51¢/kWh × 1,204 kWh a month. Residential revenue divided by residential customers, averaged over the 12 months to June 2026 — the 17th highest among the 50 states and DC.

Compared with the U.S. and neighboring states

Average monthly residential electricity bill, in US dollars
Tennessee
$163
U.S. average
$156
Alabama
$185
Virginia
$172
Mississippi
$170
Georgia
$161
Kentucky
$155
North Carolina
$151
Missouri
$145
Arkansas
$139

Tennessee is $7 a month above (+4.3%) the U.S. average of $156. Average monthly bill, July 2025 – June 2026.

How Tennessee makes its electricity

Fuel mix & 10-year trend →Power plants →
Renewable
12.5%
Carbon-free
58.6%
Largest source
Nuclear 46%
Tennessee electricity generation by source, July 2025 – June 2026
SourceShareGeneration
Natural gas20.5%16,654 GWh
Coal21.5%17,477 GWh
Nuclear46.2%37,557 GWh
Wind0.0%0 GWh
Solar2.2%1,786 GWh
Hydro9.7%7,877 GWh
Other-0.0%-4 GWh

81.3 TWh of net generation over the 12 months to June 2026. Generation, not consumption — power crosses state lines.

Tennessee electricity prices in context

Tennessee residents pay 14.47¢/kWh for electricity, a rate 21.5% below the US average of 18.44¢/kWh. The state ranks 40th among the 50 states and DC, counting down from the most expensive. Against its neighbors, Tennessee offers some of the lowest rates in the region. Only Arkansas at 14.36¢/kWh and Missouri at 13.68¢/kWh undercut it, while Virginia at 17.61¢/kWh, Alabama at 16.77¢/kWh, Mississippi at 16.16¢/kWh, Georgia at 15.84¢/kWh, North Carolina at 15.09¢/kWh, and Kentucky at 14.98¢/kWh all charge more.

Over five years since May 2021, the rate has climbed 26.6% from 11.43¢/kWh. The twenty-year trajectory since May 2006 shows a 76.5% increase from 8.20¢/kWh. Since records began in January 2001, the rise has been 136.8% from 6.11¢/kWh. The current rate sits below the state's record high of 15.08¢/kWh set in March 2026, and far above its record low of 6.11¢/kWh in January 2001.

Tennessee's average monthly residential bill stands at $162 for 1,199 kWh, compared with the national average of $155 for 871 kWh. Despite a below-average rate, the bill runs slightly higher because usage is considerably above the national figure. Commercial and industrial rates in the state are 13.52¢/kWh and 6.45¢/kWh respectively. Electricity rose 5.4% year over year as of May 2026.

Written from the EIA figures on this page, covering data through May 2026.

12-month trend

ResidentialCommercialIndustrial
5.5¢8.1¢11¢13¢16¢Jul '25Oct '25Jan '26Mar '26Jun '26ResidentialCommercialIndustrial

Price history since 2001

ResidentialCommercialIndustrial
2.8¢6.1¢9.4¢13¢16¢Jan '01May '07Oct '13Feb '20Jun '26ResidentialCommercialIndustrial

Average retail price in all three sectors, every month since January 2001.

Residential

Jan '01
6.11¢
Now
14.07¢
Change
▲ 130.3%
Range
6.11–15.08¢

Recent months

MonthResidentialCommercialIndustrial
June 202614.0713.946.87
May 202614.4713.526.45
April 202614.9414.076.95
March 202615.0814.537.06
February 202612.8213.216.80
January 202613.1012.976.50
December 202512.8712.626.24
November 202513.4712.726.43
October 202513.0612.286.50
September 202513.2912.986.70
August 202513.0212.867.00
July 202513.2112.817.24

Prices in ¢/kWh.

Frequently asked questions

›How much does electricity cost in Tennessee?
Residential electricity in Tennessee costs 14.07¢ per kilowatt-hour as of June 2026, the 47th highest rate among the 50 states and DC. Commercial customers pay 13.94¢ and industrial customers 6.87¢ per kilowatt-hour.
›Why is electricity relatively cheap in Tennessee?
Tennessee's residential rate of 14.07¢/kWh is -21.5% versus the U.S. average of 17.92¢/kWh. What a household actually pays also depends on how much it uses: the typical Tennessee home consumes 1,204 kWh a month against a national average of 870 kWh, which is why its average bill comes to $163.
›Have electricity prices in Tennessee gone up?
Residential electricity in Tennessee has moved +130.3% since 2001, reaching 14.07¢/kWh in June 2026. Over the last year alone the change was +1.8%.
›Is electricity cheaper in states neighboring Tennessee?
Of the states bordering Tennessee, Arkansas has the lowest average monthly bill at $139 and Alabama the highest at $185. Tennessee averages $163 a month, against a U.S. average of $156.