In March 2024, the average cost of electricity in the Philadelphia area was 20.6 per kWh, which is 3 more than the U.S. average. Since the average PA home uses 10,248 kWh of electricity a year, the average Philadelphia electric bill is around $176 per month.
With increasingly high energy costs, it can seem tough for Philly residents to keep their lights on without breaking the bank. However, understanding these costs and implementing simple strategies can help save on monthly bills.
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What Makes Philadelphia Electricity Rates High?
To understand electric rates in Philadelphia, it's essential to look back to 1996 when Pennsylvania adopted electricity deregulation, known as Energy Choice.
Energy Choice allows residents and business owners to shop for power from different energy providers. The goal was to increase competition and reduce the average electric bill in Pennsylvania.
Philadelphia Electricity Rates
| Plan | Rate Per kWh |
|---|---|
| Clearview Energy Clear Guarantee 6 6 Months | 7.09¢ Select |
| Tomorrow Energy 12 Month Fixed 12 Months | 7.18¢ Select |
| Tomorrow Energy 9 Month Fixed 9 Months | 7.18¢ Select |
| Direct Energy Live Brighter 18 18 Months | 9.69¢ Select |
| Constellation 36 Month PowerPlug Plan 36 Months | 10.79¢ Select |
- 100% Renewable Sources
- Smart Home System Included
However, despite PA's high energy output, electricity prices in Philadelphia have continued to increase. There are several reasons for these increases, including:
- High congestion costs from transmitting power to a dense, urban area
- Rising natural gas costs
- Aging grid infrastructure and closing coal mines driving up distribution costs
- PECO's rates are increasing faster than many PA utilities
Understanding the "why" behind Philly's high energy costs can help residents make informed choices about managing electricity bills.
How Much Can You Save Philadelphia?
Shop electricity rates from leading providers and make the switch today.
How To Lower Your Philadelphia Electricity Bill
While many aspects that lead to high energy costs are out of the typical consumer's control, there are ways to reduce monthly power bills. Here are tips to lower costs, reduce energy usage, and increase savings:
Shop for Better Rates
The primary way to lower electricity bills in Philly is to shop for competitive supplier rates. According to the Pennsylvania Public Utility Commission, residents switching to alternative suppliers save an average of 15% in the long term.
Increase Energy Efficiency
Simple upgrades and habit changes can reduce energy consumption and lower monthly bills. Replacing old appliances with Energy Star models, swapping incandescent bulbs for LEDs, and adding insulation all bring long-term savings.
Smart thermostats that adjust temperature when you're away provide an easy way to save up to 10% on bills. Unplugging devices when not in use and running full loads of laundry can bring additional savings.
Use Less Energy
In addition to efficiency upgrades, Philadelphians can take steps to actively reduce energy usage and associated costs:
- Set the water heater to 120F to save electricity and money
- Run dishwasher and laundry only when full
- Replace inefficient older HVAC units
- Upgrade windows and seal air leaks to improve insulation
Even minor behavior and usage changes can reduce electricity consumption.
Explore Bill Payment Options
Some utilities offer flexible bill payment programs. For instance, budget payment plans charge a consistent price each month. This may result in slightly higher prices during times of low power usage, but it can help avoid seasonal spikes.
Seek Bill Assistance
Several options exist if you need help paying your electric bill in PA. Qualifying low-income households can receive grants for bill payment through the Low Income Home Energy Assistance Program (LIHEAP). PECO and other electricity suppliers offer multiple assistance programs, including bill discounts and forgiveness for overdue balances.
Programs administered by utilities and state or local agencies can provide audits, rebates, and financing options for efficiency upgrades that lower electric usage. For example, the Philadelphia Energy Authority offers free home energy assessments and rebates on improvements.
Federal tax credits and local incentives may also be available for high-efficiency heat pumps, smart thermostats, insulation, air sealing, and other electric-saving home improvements. Participating in such programs can help reduce your electric bill in Philadelphia and other regions of Pennsylvania.
Stay Ahead of Rising Rates
Philadelphia residents face steep electricity costs due to market deregulation, an aging grid, and other factors largely beyond their control. However, arming yourself with knowledge and resources can lead to savings and finding an energy company that best fits your needs.
By comparing suppliers, upgrading your efficiency, using less energy, and considering assistance programs, you can reduce costs even with increasing rates. Become an informed electricity shopper and user to take charge of your bill.