What drives electric bills in Tennessee
Residential electricity in Tennessee averaged 13.9¢ per kWh in January–July 2026, up 4.9% from 13.2¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 13.7¢. The typical home here used 1,154 kWh a month in 2024, 34% more than the U.S. average, so how much power you use matters as much as the price.
- TVA’s monthly fuel cost adjustment. TVA changes its fuel charge every month, so your price per kWh can move even if your local power company hasn’t changed its rates.
- All-electric homes. Most Tennessee homes heat with electricity, often with heat pumps, so winter bills can be as high as summer ones.
- Summer cooling. Hot, humid summers keep A/C running for months.
Who supplies your power
Almost all of Tennessee gets its electricity from the Tennessee Valley Authority (TVA), delivered by about 150 local power companies, including MLGW in Memphis, NES in Nashville, KUB in Knoxville and EPB in Chattanooga.
Ways to pay less in Tennessee
- Use TVA EnergyRight’s free online energy assessment and look for rebates on heat pumps, attic insulation and duct sealing.
- Ask your local power company whether it offers a time-of-use or prepay plan. Some Tennessee utilities have them, and they can lower costs if you can shift usage.
For example, a 1,500 W space heater running 8 hours a day costs about $51 a month at Tennessee prices. Check what your appliances cost to run in Tennessee.
Help paying your bill in Tennessee
- LIHEAP: Tennessee’s program, through the Tennessee Housing Development Agency and local agencies, helps with heating and cooling bills.
- Home Uplift: TVA’s program, with local power companies, provides free home energy upgrades to income-eligible households.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Tennessee?
A typical 7 kW rooftop system in Tennessee produces roughly 9,100 kWh a year, about 66% of what an average home here uses. At the state’s average price of 13.9¢, that power is worth about $1,262 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Tennessee compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Tennessee | 13.9¢ | 1,154 | $160 |
| Arkansas | 13.6¢ | 1,048 | $143 |
| Missouri | 14.0¢ | 1,001 | $140 |
| Kentucky | 14.3¢ | 1,047 | $149 |
| North Carolina | 14.9¢ | 1,015 | $152 |
| Mississippi | 15.2¢ | 1,156 | $176 |
| Georgia | 15.4¢ | 1,074 | $165 |
| Alabama | 16.5¢ | 1,143 | $189 |
| Virginia | 16.8¢ | 1,032 | $174 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.