Tennessee Electricity Prices

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.