Which States Have the Cheapest Electricity? Those With the Most Renewable Energy

Tuesday 31 March 2015

Over the past couple of years, we've been pointing to examples where states with the most renewables pay the lowest electric rates, and now a study confirms the pattern.

The 10 states with the largest proportion of renewable energy pay less for electricity than the national average and well below states that have the least renewable energy, according to DBL Investors. And with costs for solar and wind trending further down, this gap will only strengthen.

When renewables were first introduced to the market, electricity prices were slightly higher, but those days are over. States with the most fossil fuels have the most expensive electricity, they say.

States with cheapest renewable energy: California, Iowa, South Dakota, North Dakota, Idaho, Minnesota, Kansas, Oklahoma, Maine, Washington, DC (Hawaii is excluded even with its high proportion of renewable energy because its remoteness dictates energy price more than any other factor).

10 laggard states: Florida, Connecticut, Rhode Island, Delaware, West Virginia, South Carolina, Ohio, Missouri, Tennessee, and Kentucky.

Because solar and wind energy are free after construction is completed, the price of renewable energy is based almost entirely on the cost and efficiency of the hardware. As you know, these costs keep declining. In contrast, the cost of fossil fuel-based electricity depends overwhelmingly on volatile commodity prices.

This article appeared on www.sustainablebusiness.com

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