How Much Does Electricity Cost Per Month for an Apartment?

TL;DR: The average electricity cost for a 1-bedroom apartment in the US is ~$50-$90 per month, but it varies depending on location, building age, appliance usage, and number of tenants. Landlords should consider these factors when setting rates.

In American households, the average monthly electric bill tends to range between $90 and $150 per month. Everything from the weather to national politics has the potential to impact that rate. However, multi-unit apartment buildings often contain many different tenants, each with their own schedules and usage habits.

How much does electricity cost per month for an apartment? And how do you know if you’re charging enough—or, subsequently, paying too much—for power?

A lot of factors contribute to the cost of electricity in a given apartment unit. In this guide, we’ll break them down to ensure you aren’t undercharging or overpaying for power. Continue reading to learn how much electric costs for an apartment and why.

An old building with lots of charm looks great from the street. With that said, the age and style of the apartment building can have a major impact on its energy efficiency. Older buildings may have older insulation, windows, and HVAC systems. They’re often more challenging to heat or cool.

Why? In the past, buildings were not constructed with energy efficiency in mind. They may not follow the latest building codes. Buildings renovated with modern, energy-efficient appliances may be an exception.

Consider how many units there are in a given apartment building and how many residents occupy each one. All of those individuals have unique energy usage and consumption habits. The more tenants in a building, the higher the potential overall energy use.

With that said, the efficiency of the building and the habits of the tenants also play a role.

What appliances come standard in your apartment building? Does each unit have an individual washing machine and dryer? Is there heating and cooling? Does each apartment have a refrigerator, microwave, and electric oven in the kitchen?

The more individual appliances are in use, the higher the energy bill will be overall. Appliances that heat or cool for long periods of time tend to draw the most power.

Where is your apartment building located? Buildings in more extreme climates tend to require significant heating or cooling. That will often result in higher electricity bills. Also, consider seasonal fluctuations, such as hot summers and cold winters.

There are two ways that landlords typically charge tenants for electricity.

They may set a fixed monthly rate, which does not change based on individual unit consumption. They may also choose to submeter or only charge tenants for the electricity they actually use.

In general, submetering is considered to be a more equitable solution. It gives tenants more control over their monthly expenses and does not penalize them for making green, sustainable choices. No tenant will feel that they are subsidizing other units.

Likewise, tenants with higher energy consumption will be accountable for their utility use. It may provide a direct incentive to make sustainable changes.

In fixed-rate units, it’s up to landlords to determine what to charge tenants. They should factor in the following:

• Past utility bills and historical data
• Building size and occupancy
• Local averages
• Common appliances and building amenities

Landlords should not forget to factor in electricity usage in common areas, including hallways and elevators. Likewise, the building’s energy efficiency rating may come into play.

Tenants can do their research by requesting a justification for the rate. This may be outlined in your lease agreement. You can also do your own research by looking into historical data and local averages.

If you fear you are being overcharged, be sure to document everything. You may need to consult with a local tenant organization or an attorney. It’s crucial to understand the landlord-tenant laws in your area before taking action.

It can be difficult to determine an “average” electricity cost for apartments in the United States. America is large, with a broad range of climates and building types. Likewise, a penthouse or suite will use more electricity than a studio apartment.

Furthermore, electricity rates vary considerably by state. They range from close to 10 cents per kilowatt-hour (kWh) in Utah to over 40 cents in Hawaii. It can be helpful to look at the average energy rates in the United States. We’ll use that figure to calculate an approximate

approximately how much electricity costs for a studio apartment or a one-bedroom apartment.

At the time of writing (January 2025), the average electricity rate in America is about 17 cents per kWh. To calculate your rate, you’ll need to know how much electricity you consume.

In sub-metered apartments, you should have access to precise data. In the average small apartment, individuals use approximately 200-400 kWh of electricity per month. For our purposes, let’s assume an average of 300 kWh per month.

You can calculate your monthly rate using the following formula:

Electricity Consumption (kWh) x Electricity Rate ($/kWh) = Monthly Cost

In our example, that’s 300 kWh x $0.17/kWh = $51.00

The estimated 1 bedroom apartment electricity cost would be around $51.00 per month. That assumes that electricity is sub-metered and that the unit has one occupant. It doesn’t factor in any other utilities (water, cable, gas, internet, etc.) or power to common areas. With that in mind, your monthly rate may vary.

If you live in a deregulated energy state, you may be able to offer your tenants lower rates. Browse the energy marketplace at Energypricing.com to compare rates and plans for your region.

A lower rate per kWh means a lower electricity bill for everyone. You can switch plans in as little as two minutes. Enter your zip code to get started.