The cost of energy is expected to rise slightly in 2024, following a 6.2% increase in electricity prices in 2023. This increase, coupled with inflation and hotter weather, is predicted to strain household budgets. WalletHub compared the total monthly energy bills in each state, including electricity, natural gas, motor fuel, and home heating oil. So, how does Arizona fare in this comparison?
WalletHub’s Energy Cost Rankings
WalletHub’s recent comparison of monthly energy bills across all states provides a comprehensive overview:
- Overall Rank: 49 (out of 50, with 50 being the cheapest)
- Total Energy Cost: $400
- Monthly Electricity Cost: $152 (Rank 22)
- Monthly Natural Gas Cost: $69 (Rank 50)
- Monthly Motor Fuel Cost: $167 (Rank 19)
- Monthly Home Heating Oil Cost: $13 (Rank 46)
Despite the anticipated rise in costs, Arizona ranks 49th in the nation for total energy expenses, making it one of the most affordable states for energy. This means that, compared to many other states, Arizona remains an affordable place to manage energy expenses.
Breaking Down the Costs
- Electricity: At $152 per month, Arizona ranks 22nd in the nation for electricity costs. Given the state’s reliance on air conditioning to combat the desert heat, this isn’t surprising. However, it’s worth noting that Arizona’s solar energy incentives can help mitigate these costs for those who invest in renewable energy solutions.
- Natural Gas: Arizona boasts the lowest monthly natural gas costs in the country, ranking 50th. This is likely due to the state’s mild winters, reducing the need for extensive heating.
- Motor Fuel: With an average cost of $167 per month, Arizona ranks 19th for motor fuel costs. Given the vast distances between cities and towns, this is a significant factor for residents, especially those commuting daily.
- Home Heating Oil: At just $13 per month, Arizona ranks 46th for home heating oil costs. The warm climate reduces the need for heating oil, keeping these costs minimal.
Tips for Managing Rising Energy Costs
As energy costs rise, here are a few tips to help manage your household budget:
- Invest in Energy Efficiency: Consider upgrading to energy-efficient appliances and improving home insulation. This can reduce electricity consumption and lower monthly bills.
- Utilize Renewable Energy: Explore solar energy options. Arizona’s abundant sunshine makes it an ideal location for solar panels, which can significantly reduce electricity costs.
- Optimize Heating and Cooling: Use programmable thermostats to optimize heating and cooling schedules. This ensures your home is energy-efficient without compromising comfort.
- Stay Informed: Keep an eye on energy rates and consider switching providers if better rates are available. Energy companies often offer competitive rates to attract new customers.
While the anticipated rise in energy costs may strain household budgets, Arizona remains one of the most affordable states in terms of overall energy expenses. With the state ranking 49th in the nation for total energy costs, homeowners in Arizona benefit from relatively low monthly bills. By staying informed and taking proactive measures, homeowners can navigate these changes effectively.
For more insights on how to manage your home’s energy efficiency and stay updated on real estate trends in Arizona, visit AriZona Real Estate Insider. Stay cool, stay efficient, and make the most of what Arizona has to offer!
Total Energy Costs by State
| Overall Rank* | State | Total Energy Cost | Monthly Electricity Cost (Rank) | Monthly Natural-Gas Cost (Rank) | Monthly Motor-Fuel Cost (Rank) | Monthly Home Heating-Oil Cost (Rank) |
|---|---|---|---|---|---|---|
| 1 | Wyoming | $1591 | $119 (45) | $107 (13) | $278 (1) | $1087 (1) |
| 2 | North Dakota | $840 | $150 (23) | $95 (29) | $180 (12) | $415 (3) |
| 3 | Iowa | $798 | $129 (35) | $99 (26) | $150 (36) | $421 (2) |
| 4 | Montana | $787 | $125 (40) | $88 (38) | $178 (13) | $396 (5) |
| 5 | Minnesota | $782 | $123 (41) | $103 (18) | $148 (38) | $409 (4) |
| 6 | Massachusetts | $759 | $158 (17) | $157 (2) | $135 (43) | $309 (9) |
| 7 | Connecticut | $750 | $192 (4) | $151 (3) | $128 (45) | $280 (12) |
| 8 | Alaska | $716 | $149 (24) | $143 (4) | $155 (33) | $269 (15) |
| 9 | South Dakota | $709 | $153 (21) | $81 (46) | $160 (26) | $315 (8) |
| 10 | Virginia | $694 | $158 (18) | $105 (16) | $155 (32) | $276 (14) |
| 11 | Rhode Island | $690 | $142 (31) | $117 (8) | $112 (49) | $319 (6) |
| 12 | Utah | $684 | $96 (50) | $81 (45) | $190 (7) | $316 (7) |
| 13 | Alabama | $677 | $202 (2) | $87 (40) | $204 (2) | $184 (30) |
| 14 | Pennsylvania | $669 | $144 (30) | $111 (11) | $136 (42) | $277 (13) |
| 15 | Maryland | $665 | $146 (28) | $116 (9) | $152 (35) | $251 (17) |
| 16 | New Hampshire | $662 | $187 (5) | $110 (12) | $124 (47) | $241 (19) |
| 17 | Wisconsin | $659 | $123 (42) | $89 (35) | $163 (22) | $285 (11) |
| 18 | West Virginia | $659 | $171 (12) | $86 (41) | $161 (24) | $240 (21) |
| 19 | Maine | $645 | $164 (14) | $113 (10) | $156 (31) | $212 (26) |
| 20 | Indiana | $645 | $156 (19) | $89 (36) | $194 (6) | $206 (27) |
| 21 | Vermont | $644 | $137 (33) | $106 (15) | $157 (30) | $245 (18) |
| 22 | New Jersey | $643 | $122 (44) | $98 (27) | $125 (46) | $298 (10) |
| 23 | Ohio | $630 | $128 (36) | $103 (17) | $158 (29) | $241 (20) |
| 24 | Illinois | $622 | $122 (43) | $129 (7) | $146 (39) | $225 (22) |
| 25 | Washington | $618 | $114 (47) | $99 (23) | $145 (40) | $260 (16) |
| 26 | Oregon | $591 | $117 (46) | $84 (42) | $169 (18) | $221 (24) |
| 27 | Idaho | $591 | $128 (37) | $69 (49) | $175 (14) | $219 (25) |
| 28 | New York | $589 | $126 (39) | $136 (5) | $102 (50) | $225 (23) |
| 29 | Hawaii | $583 | $204 (1) | $212 (1) | $163 (21) | $4 (48) |
| 30 | Michigan | $583 | $130 (34) | $102 (19) | $145 (41) | $205 (28) |
| 31 | Missouri | $578 | $148 (25) | $100 (21) | $199 (4) | $130 (34) |
| 32 | Delaware | $564 | $153 (20) | $90 (33) | $132 (44) | $190 (29) |
| 33 | North Carolina | $557 | $147 (26) | $102 (20) | $160 (27) | $148 (31) |
| 34 | Kentucky | $556 | $163 (16) | $94 (30) | $172 (16) | $127 (35) |
| 35 | Arkansas | $541 | $165 (13) | $100 (22) | $173 (15) | $102 (37) |
| 36 | Nevada | $538 | $141 (32) | $74 (48) | $182 (9) | $141 (33) |
| 37 | Georgia | $533 | $178 (9) | $133 (6) | $181 (10) | $41 (41) |
| 38 | South Carolina | $533 | $181 (8) | $93 (31) | $148 (37) | $112 (36) |
| 39 | Tennessee | $524 | $164 (15) | $89 (34) | $171 (17) | $100 (38) |
| 40 | Oklahoma | $477 | $173 (11) | $98 (28) | $181 (11) | $25 (43) |
| 41 | California | $476 | $145 (29) | $88 (39) | $197 (5) | $47 (40) |
| 42 | Louisiana | $474 | $192 (3) | $81 (44) | $164 (20) | $37 (42) |
| 43 | Colorado | $470 | $107 (48) | $99 (25) | $122 (48) | $143 (32) |
| 44 | Florida | $462 | $186 (7) | $99 (24) | $154 (34) | $22 (44) |
| 45 | Mississippi | $457 | $175 (10) | $83 (43) | $199 (3) | $1 (50) |
| 46 | Nebraska | $453 | $127 (38) | $91 (32) | $160 (28) | $75 (39) |
| 47 | Texas | $437 | $186 (6) | $88 (37) | $160 (25) | $2 (49) |
| 48 | Kansas | $436 | $147 (27) | $107 (14) | $162 (23) | $22 (45) |
| 49 | Arizona | $400 | $152 (22) | $69 (50) | $167 (19) | $13 (46) |
| 50 | New Mexico | $376 | $103 (49) | $76 (47) | $186 (8) | $11 (47) |
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