Average Power Bill in Connecticut: What to Expect and Smart Ways to Save

Electricity isn’t cheap, and the energy prices in Connecticut are some of the highest in the US. Recent rate hikes have driven them up even higher. If you are a Connecticut resident or are considering moving to the area, you might be wondering why residents are paying more for electricity, and if there’s a way to lower the bill.

One factor in Connecticut’s high electricity bills is that neither of the state’s two electric utilities, Eversource and United Illuminating, produce their own energy, according to NBC Connecticut. Instead, the utilities have to purchase energy generated elsewhere. That means energy prices in Connecticut are subject to fluctuations in the wholesale market, which can be affected by everything from spikes in demand to foreign wars. 

There’s also the cost to maintain Connecticut’s power grid, which must withstand heavy usage during both sweltering, stormy summers and snowy New England winters. Both Connecticut utilities offer so-called time-of-use rates, meaning they charge more for electricity used during the peak hours of noon to 8 p.m.

Despite these challenges, there are strategies Connecticuters can use to lower their usage, get a better rate and pay less for electricity. 

What’s the average electricity bill in Connecticut?

Connecticut residents pay far above the national average for electricity, often competing with states like Hawaii, Alaska, California and other small New England states like New Hampshire and Massachusetts for the highest energy prices in the US.

The table below shows the average electric bill in Connecticut in 2022, according to data from the Energy Information Administration:

Those high electricity rates — 63% higher per kilowatt-hour than the national average in 2022 — contribute to higher bills for Connecticut residents. The average household in the state actually uses 20% less energy than other US homes, but average monthly electric bills in Connecticut are still 30% higher than elsewhere in the country. 

Shopping for electricity in Connecticut

Connecticut residents may be able to get a better rate by shopping around for an electricity supplier. The state is one of 18 with a deregulated energy market, meaning most ratepayers can choose their energy supplier — the entity that generates energy for your home. 

You’ll still pay for energy through the same utility that delivers the energy to your home, but a new supplier may help lower your bills. However, several areas of Connecticut operate as energy cooperatives, and residents there aren’t able to choose their electricity supplier.

If you are able to shop for electricity, pay attention to several key features of each plan. Look at your current electric bill, then compare it with plans from other suppliers. You can choose a fixed-rate plan, which offers a consistent rate and easier budgeting throughout the duration of the plan. The other option is a variable rate, which will go up and down as the wholesale market shifts — meaning sometimes your rate will be higher or lower. 

Leticia Colon de Mejias, founder of Energy Efficiencies Solutions, which performs home energy audits, energy efficiency upgrades and retrofits throughout Connecticut, recommends the Connecticut State Office of Consumer Counsel as a resource for understanding electricity rates. Eversource and United Illuminating customers can choose and compare plans on the EnergizeCT Rate Board website. 

Read the energy facts label or comparable documents for the plans you’re considering before making a decision. Keep an eye out for early termination fees, payment terms and any other costs. Check the duration of your plan, too — if you let it expire, you may be automatically locked into a higher rate. Set a reminder to shop around again before it expires. 

Getting solar panels in Connecticut

If you’ve been thinking about getting solar panels in Connecticut, now could be a great time to do so. The price to install solar in the state has dropped by nearly 50% over the past decade, according to the Solar Energy Industries Association. Plus, the Inflation Reduction Act’s 30% tax credit on solar projects is a big incentive. 

Connecticut also has several state-specific solar incentives, including sales tax exemptions, property tax exemptions and the Connecticut Green Bank’s low-interest Smart-E Loan, which will provide up to $50,000 to finance residential solar systems. Net metering, in which you sell excess power generated by your panels back to the grid, can help Connecticut residents who install solar save even more money. 

When CNET scored states based on their residential solar incentives, Connecticut was tied for 12th place nationwide with a D.  

Electric bill assistance in Connecticut

Both Eversource and Universal Illumination offer utility assistance programs such as payment plans, matching payment programs, “new start” programs that eliminate old past-due balances, and discounted rates for qualifying households. Connecticut residents may also be able to take advantage of these energy assistance programs and incentives: 

• Connecticut Energy Assistance Program (CEAP): This state program provides a benefit of $180 to $530 for qualifying residents to assist with paying heating bills. Applicants may also be eligible for benefits like the replacement or repair of defective heating equipment, shutoff protection and matching payment plans. 
• Operation Fuel: A nonprofit organization, Operation Fuel provides utility and energy assistance to Connecticut residents in need. 
• Winter Protection Program: Qualifying Eversource customers can receive a moratorium on utility shutoffs during the winter months without accruing late payment charges. 
• Universal Illumination rebates: The utility offers several rebates to Connecticut ratepayers covering energy-efficient appliances and devices, discounted home energy assessments, demand response programs that reward households that have smart thermostats and free or low-cost energy-efficiency and weatherization services for low-income households. 
• Eversource rebates: This Connecticut utility also offers no- or low-cost home energy audits, a demand response program and rebates on energy-efficient items like smart thermostats, water heaters and HVAC equipment. 
• EnergizeCT’s Home Energy Solutions: This program offers $75 home energy audits that can also include weatherization, insulation and other energy-saving upgrades.  

Energy-saving tips for Connecticut residents

When it comes to lowering your electric bill, the rate you pay is only part of the puzzle. Strategies like installing smart technology, increasing energy efficiency, and other small changes can all cut energy use in your household — making a significant dent in your monthly bills. The Inflation Reduction Act includes tax credits and rebates on energy upgrades to save even more. 

Get a home energy assessment

If you’re serious about making your home more energy efficient, one of the best ways to go about it is with a home energy audit. 

“Call EnergizeCT to sign up for an energy assessment. You can also call a home energy efficiency company and pay for it out of pocket,” said Colon de Mejias, noting that the assessment could be free or low-cost after a rebate.

Look for home energy auditors who are BPI GoldStar Contractors that have been certified by the Building Performance Institute. 

Add insulation 

“Insulation has a one- to three-year return on investment,” said Colon de Mejias. “It draws down heating and cooling costs by up to 30% when installed according to Department of Energy guidelines.” 

Insulating attics, basements, exterior walls and other areas can help your home better retain heat in the winter and stay cool in the summer, reducing the amount of energy used by your HVAC system. Insulation and weatherization measures are typically performed first to make HVAC upgrades more effective. 

Upgrade to a heat pump

“Once you insulate your home, if you have electric heat, for example, you should one hundred percent convert to a heat pump,” said Colon de Mejias. “You’re going to save a lot of money by insulating your walls and converting from baseboard heat to a heat pump.” 

Install a smart thermostat

Smart thermostats can help just about anyone save money by customizing heating and cooling to your schedule and working around peak energy rates. In Connecticut, both major electric utilities charge time-of-use rates, but they also offer demand response programs. Also called virtual power plants, these programs allow ratepayers to save money and earn rewards in exchange for allowing the utility to make slight adjustments to the temperature in their home through a smart thermostat. 

Behavioral changes

Paying closer attention to how you’re using electricity and adjusting accordingly can seriously cut your energy use, resulting in lower bills. Colon de Mejias recommends making small changes — checking to ensure that windows, doors and attic vents are fully closed, bumping up the thermostat a little in the summer and down in the winter, and putting on a sweater or blanket before turning up the heat. 

“People generally don’t pay attention to how they’re using energy, so that’s the first thing to look at,” she said. “It’s good for the environment and it’s good for your bill.”