What Is The Average Electric Bill in Tennessee [2025 Updated]

Tennessee's average electric bill of $153.93 is relatively moderate compared to other states. For example, Oklahoma's bill is lower than Tennessee and stands at $138.33, and Connecticut has a higher electric bill that stands at $214.52 monthly. Minnesota's bills range from $90 to $150, depending on the state's consumption and seasonal changes. New York's average monthly bill is lower at $150.95, while Maryland's is higher at $170.22.

Here's a detailed table illustrating the different rates of major states in the US.

What Are The Electric Rates in Tennessee?

In May 2025, the residential electric rate was 13.88 cents per kWh in Tennessee. Electric rates refer to the cost per unit of electricity that consumers have to pay based on their usage. These charges vary depending on the type of consumer -- residential, commercial, or industrial. 

Commercial rates are slightly lower at 12.83 ¢/kWh, offering competitive pricing when compared against the national average of 12.96 ¢/kWh. Similarly, industrial users benefit from an even more favorable rate of 6.66 ¢/kWh, which is significantly lower than the national average of 8.30 ¢/kWh.

In Tennessee, electricity rates are defined by the different service providers. Here are the different electricity providers in Tennessee:

Tennessee Valley Authority (TVA)

TVA is the nation's largest public power corporation, providing electricity to over 10 million people. This government-owned agency owns most of the state's electric generating capacity and provides electricity to 153 local power companies.

Rate: The Tennessee Valley Authority (TVA) does not directly set electricity rates for consumers. Instead, it sells wholesale power to local power companies, who then set their own retail rates for their customers

Memphis Light, Gas and Water (MLGW)

MLGW serves the Memphis area, provides electricity to 440,000 customers, and offers gas and water-related services. The company also has 43,000+ customers who use electricity for their commercial work.

Rates: Customers pay a base service charge of $15.94 monthly or less. For every 500 kWh of electricity consumption during the summer, the charges are 9.68 ¢/kWh and 9.56 ¢/kWh for additional usage. Similarly, during winter, the rate is 9.28 ¢/kWh for the first 500 kWh and 9.17 ¢/kWh for additional consumption.

Nashville Electric Service (NES)

NES is another largest public electric utility provider in the US, serving more than 370,000 customers in Middle Tennessee. The company provides a detailed 'Neighborhood Comparison Access' where one can compare their home size and analyze their monthly usage and respective bills.

Rates: The current energy rate is 10.216 ¢/kWh, with a base charge of $14.06 per month if the customer's highest monthly consumption is not more than 500 kWh. However, the base charge increases to $18.96 if the consumption ranges from 500 - 2000 kWh. If the consumption ranges from 2001 kWh - 4000 kWh, the base service charges will be $26.96 per month.

Knoxville Utilities Board (KUB)

KUB provides high-speed internet, electric, gas, water, and wastewater services to the Knoxville area in Tennessee. Currently, KUB has more than 400,000 customers in Knoxville and different parts of the neighboring counties.

Rate: The base service charge for KUB customers is $20.50, and the electricity rate for a single-family dwelling is 12.32 ¢/kWh.

As you can see, Tennessee's electricity providers offer varied rates based on their demographics and infrastructure. On one hand, MLGW charges 9.68 ¢/kWh for the first 500 kWh in summer with a $15.94 base fee. At the same time, NES rates are 9.254 ¢/kWh with base fees from $14.06 to $26.96 based on monthly usage. KUB's rate is 12.32 ¢/kWh with a $20.50 base charge.

Given the fact that there are so many service providers, it might become confusing for a few as to which one they should choose. Determining the best electric rate or supplier requires careful consideration of several factors, but all begins with a careful understanding and analysis of your usage patterns. Here are a few practical factors to help you make an informed decision:

Understand Your Usage

Always begin by analyzing your electricity consumption. You can check and review your past bills to understand your monthly usage in kilowatt-hours. If your monthly power consumption is lower, you can choose the one that offers moderate rates. However, if your consumption exceeds, let's say, 1000 kWh per month, then go ahead with the one that has more competitive rates.

Compare Rates

You can also always compare rates from the electricity providers. Go to their official websites and look for the updated rates they offer their residential and commercial customers. You can check out TVA's updated wholesale rate or go ahead with MLGW if you are looking for tiered rates based on the season.

Check Contract Terms

Always pay close attention to the contract terms and conditions. Some electricity providers have hidden cancellation charges or rate changes over time. Contact their customer support team and understand the terms in detail.

How Much Does It Cost to Live in Tennessee?

The average cost of living in Tennessee is $1300 per month, which does not include housing rent. The cost of living in Tennessee will increase depending on your locality. For instance, a 1-bedroom apartment near the city center might cost around $2000 per month, and the same square foot area outside the city center will cost around $1500 per month.

That said, Tennessee is known for its relatively low cost of living compared to other states because the state offers affordable housing and lower utility costs. At the same time, with no state income tax, the state becomes an attractive option for both families and individuals. Overall, the cost of living in Tennessee is 10% lower than the national average of $2,500 and $3,500 per month.

Some of the common utilities here in Tennessee are:

Electricity: With an average electricity rate of 13.88 ¢/kWh and monthly consumption of 1,109 kWh, the average monthly electric bill in Tennessee is $153.93, which comes to $1,847.16 yearly.

Domestic Gas: The average domestic gas that is used by any domestic consumer for cooking, water heating, clothes drying, and refrigeration costs around 16.48 dollars per thousand cubic feet.

Water Charges: Water rates in Tennessee depend on different providers. For most households, the charges come to around $36-$76 per month.

Cable TV and Internet: Tennessee has different cable and internet providers, each offering its individual rates. For instance, T-Mobile Home Internet provides 245 Mbps at $50 monthly. Similarly, Earthlink offers 5000 Mbps at $49.95 per month. Other than this, there are several cable TV providers, each offering different features. On average, the cost of cable TV and Internet comes to around $121 per month.

Additionally, the cost of living in Tennessee also depends on multiple other factors. For instance:

Housing Cost

Compared to the nationwide average, housing costs in Tennessee are a little more affordable. The median home value is around $231,600, which is about 20% lower than the national average. Similarly, a 1-bedroom apartment in the city center would cost around $2000, but renting a place outside the city center will cost you around $1500.

Groceries & Food

Tennessee is famous for its agricultural production, which is why the average cost of groceries here is about 5 - 7% lower than the national average. On a monthly basis, individuals can expect to spend around $251 on groceries. This does not include the cost of dining out in expensive restaurants.

Transportation Cost

The average annual cost of transportation in this state ranges from $5,477 for a single adult to $15,530 for a family with three children. However, transportation varies according to gas prices, travel frequency, and usage of public transport.

The above data and cost are the state average, as the cost varies significantly across different cities. For example, the cost to live in Nashville will be comparatively higher than in cities like Memphis and Chattanooga, which offer affordable living options and lower utility costs. Similarly, Knoxville also falls on the more affordable side and offers a balanced cost of living.

Compared to other states, Tennessee's overall cost of living is about 10% lower than the national average, making it one of the more affordable states in the US. Having said that, there is always room to cut costs and expenditures without losing comfort.

Why Is My Electric Bill So High in Tennessee?

Several factors contribute to high electric bills in Tennessee. For instance, the choice of electricity providers, city, and number of appliances play a major role in determining the average electric bill in this state. Some of the notable factors are:

Climate Condition

Compared to other large states, Tennessee generally has a humid subtropical climate. In Tennessee, the temperature in summer goes around an average of 90°F or 32°C. Compared to summer, winters tend to be mild to cool. The change in such weather conditions directly influences the electric bills.

Usage Consumption

The average electricity consumption in Tennessee is around 1,109 kWh, which is higher than the nationwide average of 899 kWh. If your household suddenly starts using excessive appliances, the rise in consumption will directly affect the average electric bill in Tennessee.

Usage Timing

On-peak and off-peak usage hours significantly influence electricity costs. Peak hours are when the electricity demand is highest, and off-peak hours are when the demand is lowest.

In Tennessee, the on-peak hours typically occur during the hottest parts of the day in summer and early evening in winter, leading to higher rates. In contrast, the off-peak hours usually occur late at night and early in the morning, offering comparatively lower rates.

If you wish to use all of your electric appliances without worrying about the on-peak or off-peaks while managing your monthly average cost of living, you can check out Jackery Solar Generators that can power your core household appliances, leading to a lower dependency on grid power. This way, you can have an eco-friendly source of power and will have a lower average electric bill in Tennessee.

Jackery Solar Generators for Lowering Your Electric Bill

Tennessee homes see bills spike during humid summers and cold weather when HVAC runs longer, and rates can vary across TVA-served utilities. Jackery offers a wide range of solar generators that can help you spend less on grid power at the priciest or most energy-hungry times. You can harness free sunlight during the daytime with solar panels, store it in the power station, and use the stored energy in the evenings for essential appliances. That means fewer kilowatt-hours purchased, less exposure to seasonal bill swings, and quieter, cleaner backup when storms roll through.

Jackery Solar Generator 5000 Plus 

If you live in a larger household, the Jackery Solar Generator 5000 Plus helps you lower electric bills in Tennessee by a significant margin. You can use the stored solar power when your home draws the most: meal prep, laundry, and cooling in the early evening. By offloading these heavier routines to stored solar, you reduce grid purchases during your costliest periods. During outages, this essential home backup keeps key circuits and major essentials running without fuel or noise.

Appliances Running Time

• Refrigerator (300W) = 12.2H
• TV (150W) = 21.4H
• HVAC System (1500W) = 2.7H 
• Microwave (1000W) = 4.1H
• Cooler (300W) = 12.2H 

Who Should Buy This 

The Jackery Solar Generator 5000 Plus is ideal for high-usage homes, home offices with heavier loads, or small households that want maximum evening offset and resilient backup for outages. 

Customer Review 

I received the Explorer 5000 Plus solar generator to use to run my home if power goes out. It works great and will run my whole home if the power goes out.

— Dennis Carlson.

Jackery Solar Generator HomePower 3600 Plus

The Jackery Solar Generator HomePower 3600 Plus helps you run core household appliances with the help of stored energy instead of pulling from the grid every hour. When you add the expansion batteries, the solar generator can keep a fridge running for close to two weeks, which opens up room to power other everyday loads without touching billed electricity. It also handles other heavier appliances, and the wheeled design makes it simple to move from one place to another.

Appliances Running Time

• Refrigerator (300W) = 9.5H
• TV (150W) = 17.7H
• HVAC System (1500W) = 2.0H 
• Microwave (1000W) = 3.0H
• Cooler (300W) = 9.5H 

Who Should Buy This 

If you live in Tennessee and want to reduce the total electricity pulled from the grid to lower your monthly electricity bills, then the Jackery Solar Generator HomePower 3600 Plus is a reliable choice.

Customer Review 

I have 2 3600 plus with the big plug to join together I used 1 to see how long it will run my 20 year old side by side refrigerator and my 5 month old 7 cubic freezer and my spider lamp with 6 lights total watts old refrigerator 145 watts freezer 100 lites 70 charged 85 percent ran 3 days few hours to Jackary 3600 will run me for a week.

— Lamont C.

Jackery Solar Generator HomePower 3000

The Jackery Solar Generator HomePower 3000 is an easy home backup solution that can power core home appliances. It can power your living room or kitchen appliances, such as fridges, microwaves, lights, etc., so your meter works less when demand is highest at home. It is the lightest and smallest 3kWh LFP solar generator that can be easily relocated to areas where power is required.

Appliances Running Time

• Refrigerator (300W) = 8.1H
• TV (150W) = 15.2H
• HVAC System (1500W) = 1.7H 
• Microwave (1000W) = 2.6H
• Cooler (300W) = 8.1H 

Who Should Buy This 

If you want a dependable and essential home battery backup solution that can keep core kitchen appliances powered during outages or blackouts, the Jackery Solar Generator HomePower 3000 is a reliable option.

Customer Review 

I'm very impressed with my new HomePower 3000 Solar Generator....it's been doing everything I've put on it load-wise and more!!

— David Mantei. 

Jackery Solar Generator 2000 Plus

Jackery Solar Generator 2000 Plus is ideal for those looking for a high-capacity generator that emits no fumes and operates whisper-quietly. You can use the stored energy to run lights, WiFi, a fan, your router, and devices without relying on the grid. Over time, that routine trims daily usage while giving you portable backup for brief outages. Its compact footprint fits apartments and small homes, and you can scale panels or batteries later as your needs grow.

Appliance Working Hours

• Refrigerator (300W) = 5.3H
• TV (150W) = 10.0H
• HVAC System (1500W) = 1.1H 
• Microwave (1000W) = 1.6H
• Cooler (300W) = 5.3H 

Who Should Buy This

If you want an easy, portable way that can be expanded based on your power needs and can help you cut small-to-moderate bills, the Jackery Solar Generator 2000 Plus is an ideal solution.