With the introduction of electricity into our lives, it is almost indispensable for the daily running of household equipment to be supplied with electricity. Electricity bills are also an integral part of daily expenses for most families. With the advancement of technology, what is the standard of our electricity bills today and how does your own electricity bill compare to the average. This article will take you through the process of analyzing your household bill and finding out what the average electricity bill is.

1. What will the average household electricity bill be in 2024?

Electricity prices have been rising in recent years for a variety of reasons. And with people using more and more heating and cooling systems due to extreme weather conditions, all of these factors are working together to make the average household electricity bill higher and higher. According to statistics, in 2024, the monthly household electricity consumption reached 800-100kwh, according to the average price of $0.15 per kWh, each family will spend $120-150 per month on electricity, which will amount to about $1,500 a year, and this figure still does not include the monthly fixed basic costs.

Of course, this is just the average cost of electricity for an everyday household. Depending on the location, electricity prices and usage can vary greatly, and so can the cost of electricity. In some areas, the electricity expenditure can reach a difference of 2-3 times.

2. How to know your average electricity bill and electricity consumption

2.1 Check your bill

First of all, the easiest way to know the average electricity bill is definitely by checking the bill.

But before checking the bill, we need to distinguish which is the correct electricity bill. Since some energy companies write all the energy costs, such as gas and electricity, on one bill, you need to distinguish between gas and electricity. The main reason for this distinction is the difference in the units used on the bill, as gas bills are calculated by measuring gas consumption in kilocalories, while electricity bills are calculated by measuring electricity consumption in kilowatt-hours.

Once you have learned how to view your electric bill, you can collect bills from the past year to see your average monthly electric bill and the amount of electricity you use, which allows you to account for seasonal variations in your bill due to heating and cooling.

However, when you only have the previous month’s bill, you can also estimate your average cost and usage. This can be done by using the electricity consumption icons attached to your bill for the past 12 months to estimate the fluctuations in your electricity consumption over the year, and then checking the corresponding monthly tariffs to get an idea of the average cost of electricity. However, it is worth noting that such graphs are generally abbreviated, and the data obtained above is not accurate, so the data obtained through this method will have certain errors and can only be used as a reference.

2.2 What is time-based billing and tiered billing? What are rates? How to Calculate Your Average Electricity Cost and Consumption When Your Electricity Bill is Time-of-Use or Tier Billed

Energy suppliers and utility companies often use time-of-day billing to reduce the strain on the grid during peak hours and the large amount of electricity needed in a short period of time: peak hours are the most expensive and off-peak hours are the cheapest. This provides some incentive for people to use electricity separately. And to spread the word about saving electricity, some companies offer tiered billing plans: the more electricity you use, the more expensive it will be. The tariff rate is the amount you pay per kilowatt hour, and if your energy supplier has time-of-day or tiered billing, this means that the rate is different for different billing zones.

In this case, you can start by calculating the average rate for the month: take the amount of electricity due on your bill directly, subtract the fixed service charge you need to pay each month, and divide it by the amount of electricity you use to get the average rate.

Once you have the average rate, multiply it by your average monthly electricity consumption to get your monthly electricity bill.

3. What can you conclude by comparing your electricity bill to the average?

Once you have arrived at your average electricity bill and the amount of electricity you use, you can compare it to the average for your location. This enables you to assess your electricity consumption while keeping the outside environment consistent.

3.1 Analyze the level of expenditure on electricity

If your electricity bill is higher than the average, it doesn’t necessarily mean that you are overly reliant on energy – think about the size of your home, the number of people in your household, and the large power-hungry appliances that you have in your home, such as electric cars. However, if you are not able to come up with an outside reason why you have a higher electric bill after evaluating it, you need to consider this high electric bill as a red flag, whether it is due to problems with appliances in your home, or if your family members have any bad habits with electricity, etc.

Generally speaking, the monthly electric bill for a person living alone ranges from $90-$100, and the average electric bill for two people living together is in the $150 range. Whether or not your household electric bill is too high will go a long way in determining whether or not you have an “electricity burden”. Generally speaking, your electric bill should be kept at 2% of your gross income, as if a household with an annual income of $10,000 a year spends an average of $200 a year on electricity, or about $160 a month. But when your electricity bill reaches 5%, you can be sure that your electricity bill is too high for your income, and you have already created an “electricity burden” and need to consider some ways to reduce the “electricity burden”.

4. Why are home electricity bills so high?

From 2023-2024, electricity costs have been rising in almost all areas. On average, the rate of increase is 6% to 7%, which is the main reason for the increase in household electricity bills. In addition to this, there are many other factors that contribute to the high level of household expenditure on electricity:

4.1 Increase in energy use

First of all, the energy usage has increased, which is mainly due to the fact that as electricity becomes more popular in people’s lives and as more and more devices become intelligent and automated, the household’s electricity consumption will gradually increase.

4.2 Wrong choice of energy plan

Secondly, the energy plan you choose will vary from one energy supplier and utility company to another, depending on the region you are in. Some energy plans are suitable for households with low electricity consumption and some are suitable for households with high electricity consumption. If you choose the wrong energy plan, you may end up paying more for your home’s electricity than other homes with the same amount of electricity.

4.3 Harsh climate

It could also be due to your location’s climate, when your location has extreme weather conditions with long, harsh winters or high temperatures throughout the year. Your energy needs, and those of your neighbors, will increase, which will not only lead to an increase in electricity consumption, but may also lead to a further increase in the price of electricity by the energy company during the winter or summer peak periods.

4.4 Home Improvement Defects

The quality of your home, and the quality of the materials used to decorate it, can also increase your energy consumption. For example, poorly insulated walls, gaps around windows and doors, and overworked HVAC units can increase your home’s electricity bill.

4.5 Using inefficient, old appliances

Use old or low eco-rated appliances. Some of the large appliances, such as: air-conditioners, refrigerators, washing machines, etc., the environmental rating of these homes will largely determine the amount of electricity used in the home. When their energy efficiency as well as their environmental ratings are too low, it will increase a large portion of the extra electricity consumption, which will also increase your home electricity bill.

5. What measures should be taken to reduce the “electricity burden”?

With the increasing cost of electricity, more and more families are beginning to pay attention to how to reduce the “burden of electricity”. Apart from practicing good electricity habits and saving electricity, there are a number of options that can help you reduce your electricity bill.

5.1 Choose the right energy supplier

Generally speaking, the state will authorize a single energy company to control all the electricity utilities in a certain area, and the price of electricity will be set by the government and the company together. However, in some areas, the government deregulates the energy sector, so you can choose the most suitable energy supplier from a number of them, in which case the tariff is set by the energy company. You will be able to get better tariffs in such cases due to commercial competition.

5.2 Choosing different energy plans

The different energy plans are mainly reflected in the pricing of electricity and the agreement between the energy supplier and you, according to the policies of your region, the rate of increase of electricity tariffs and the household’s energy use, choose a different energy plan, which can help you to reduce the burden of electricity.

Common energy plans include fixed rate plans, time-of-use plans, tiered rate plans, variable rate plans, green energy plans, and prepaid plans. Excluding the time-of-use plans and tiered rate plans explained above, the key elements of the other plans are as follows:

Fixed Rate Plan: The price of electricity remains the same for the duration of the contract, but early termination of the contract is subject to high penalties, and the contract required for this type of energy plan ranges from 1-3 years.

Variable Rate Plan: There is no need to sign a contract with an energy company, and you have the flexibility to switch between suppliers at any time, depending on the rate of increase of the electricity price of each energy company.

Green Energy Plans: All the electricity you use is generated from clean energy sources such as solar, wind and tidal power, helping you to reduce your carbon footprint.

Prepayment plans: You can choose to pre-pay for your electricity in advance and the cost of the energy you use will be deducted directly from your account. However, you need to ensure that your balance is above $0.

5.3 Choosing to install a solar PV system

Although the average cost of electricity is affected by a number of factors such as household situation, climate and weather conditions. However, due to the increasing cost of labor and fossil fuels, rapid increases in electricity bills may become the norm in the future. In order to be able to reduce electricity bills at the source, more and more households are opting to install solar panels.

Solar panels rely on the sun’s energy to generate electricity and can help reduce electricity costs by 60-70%. If you install solar panels or choose a grid-tied solar system, it can cover almost 100% of your household’s energy needs. In recent years, there have been numerous national policies supporting the solar industry, and in response to these policies, choosing a solar system to power your home may be the most favorable choice and investment.