Why is electricity so cheap in Virginia?
Virginia pays 17.55¢/kWh for residential electricity, 4.2% below the U.S. average of 18.31¢/kWh and the #32 lowest of 51 jurisdictions. At 900 kWh a month that is about $157.95, against $164.79 at the U.S. average.
Rates are EIA residential averages through July 2026, refreshed Sep 28, 2026. The U.S. average is the EIA U.S.-total residential price; rank and region figures compare the 51 jurisdiction averages.
How Virginia compares
| Measure | Virginia |
|---|---|
| Residential rate (EIA, July 2026) | 17.55¢/kWh |
| U.S. average (EIA) | 18.31¢/kWh |
| Difference | −4.2% (−0.76¢) |
| Rank among 51 jurisdictions | #20 highest (#32 lowest) |
| South average (17 states) | 16.24¢/kWh |
| Affordability tier | Very Affordable (index 86/100) |
| 12-month change | rose 11.2% (15.78¢/kWh → 17.55¢/kWh) |
| 5-year change | rose 40.1% (12.53¢/kWh → 17.55¢/kWh) |
See every state in one ranked table on electricity cost per kWh by state or the South region.
What the EIA series shows for Virginia
- Past 12 months (July 2025 → July 2026)
- The Virginia residential rate rose 11.2% (+1.77¢/kWh), from 15.78¢ in July 2025 to 17.55¢ in July 2026.
- Past 5 years (July 2021 → July 2026)
- The rate rose 40.1% (+5.02¢/kWh), from 12.53¢ in July 2021 to 17.55¢ in July 2026.
- Past 10 years (July 2016 → July 2026)
- The rate rose 50.9% (+5.92¢/kWh), from 11.63¢ in July 2016 to 17.55¢ in July 2026.
- Highest and lowest month on record
- In this series the Virginia rate peaked at 17.61¢/kWh in May 2026 and bottomed at 6.84¢/kWh in January 2001. The series covers January 2001 to July 2026.
- Steepest 12-month increase
- The largest single-year move in the series ended in January 2009: the rate rose 22.0% (+1.80¢/kWh), from 8.19¢ in January 2008 to 9.99¢ in January 2009. That is when the change happened; the series does not say what caused it.
- Against the rest of the country
- Over the same window the unweighted average across the 51 jurisdictions with data for this period rose 33.7%, so Virginia's +40.1% outpaced the nationwide move by 6.3 percentage points. That gap is the part of the movement this dataset cannot attribute to a nationwide trend — it does not identify what else was involved.
- Rank among jurisdictions (July 2021 → July 2026)
- Measured over that identical five-year window, Virginia's change is the 13th largest of the 51 jurisdictions whose series covers it — rank 1 is the biggest increase, rank 51 the biggest decrease. The rank places the movement; it does not explain it.
Between January 2001 and July 2026 the rate peaked at 17.61¢/kWh in May 2026 and bottomed at 6.84¢/kWh in January 2001.
Every month is charted on the Virginia electricity price history page, with the year-over-year table and the same measured facts.
What sits on top of the rate in Virginia
Dominion Energy Virginia's standard residential tariff adds $7.58 a month before the first kilowatt-hour, 10.71¢/kWh in riders, for an all-in 18.40¢/kWh at 900 kWh.
The line items are on hidden electricity fees and taxes for Virginia.
Reviewed price drivers for Virginia
A rate series shows what changed, not why. The factors below are reviewed context for Virginia maintained separately from the price data — they are not causes measured from the movement above, and no share of the change is attributed to any of them.
- Utility rate case activity (Regulatory Rate Cases, medium confidence). Virginia utilities periodically file rate cases with the State Corporation Commission. Approved adjustments can reflect infrastructure investment, fuel costs, and changing load profiles.
- Data center cluster and potential demand growth (Data Centers & AI, low confidence). Virginia hosts a significant concentration of data centers, particularly in Northern Virginia. This level of commercial load may be associated with increased electricity demand in the region, though the extent to which it affects residential rates depends on regulatory and market structure. No specific quantitative claims are made.
- Large-load interconnection requests (Demand Growth, low confidence). Grid operators in Virginia may be evaluating interconnection requests from large commercial customers. Sustained demand growth can influence transmission planning and long-term rate trajectories.
The full set is on Virginia electricity price drivers; the factors themselves are documented on electricity generation cost drivers.
What the rate means for a Virginia bill
| Monthly usage | Virginia (17.55¢/kWh) | U.S. average (18.31¢/kWh) |
|---|---|---|
| 650 kWh | $114.08 | $119.01 |
| 900 kWh | $157.95 | $164.79 |
| 1,200 kWh | $210.60 | $219.72 |
| 1,600 kWh | $280.80 | $292.96 |
- Average electric bill in Virginia, by home size and city.
- Estimate a Virginia bill from your own usage.
- Why is my electric bill so high? When the rate is low but the bill is not.
Frequently asked questions
Why is electricity so cheap in Virginia?
Virginia pays 17.55¢/kWh for residential electricity, 4.2% below the U.S. average of 18.31¢/kWh and the #32 lowest of 51 jurisdictions. Over the past 12 months the rate rose 11.2% (15.78¢/kWh → 17.55¢/kWh), and over five years it rose 40.1% (12.53¢/kWh → 17.55¢/kWh). Reviewed context for Virginia points to utility rate case activity, data center cluster and potential demand growth, large-load interconnection requests — documented factors, not measured contributions to the rate.
How does Virginia's electricity rate compare with the U.S. average?
17.55¢/kWh in Virginia against 18.31¢/kWh for the U.S. average (EIA, July 2026): 4.2% below, the #32 lowest of 51 jurisdictions. The South average across 17 states is 16.24¢/kWh. At 900 kWh a month that is about $157.95, against $164.79 at the U.S. average.
Is electricity in Virginia getting more expensive?
Over the past 12 months the rate rose 11.2% (15.78¢/kWh → 17.55¢/kWh), and over five years it rose 40.1% (12.53¢/kWh → 17.55¢/kWh). In EIA data from January 2001 to July 2026, the rate peaked at 17.61¢/kWh in May 2026 and bottomed at 6.84¢/kWh in January 2001. The full monthly series is on the Virginia electricity price history page.
How much is a typical electric bill in Virginia?
At 900 kWh a month that is about $157.95, against $164.79 at the U.S. average. 650 kWh: about $114.08; 900 kWh: about $157.95; 1,200 kWh: about $210.60; 1,600 kWh: about $280.80. Dominion Energy Virginia's standard residential tariff adds $7.58 a month before the first kilowatt-hour, 10.71¢/kWh in riders, for an all-in 18.40¢/kWh at 900 kWh.