If you've ever felt a jolt of sticker shock opening your monthly electric bill in New Hampshire, you’re definitely not alone. The Granite State consistently ranks among the most expensive places for electricity in the continental U.S., leaving a lot of us wondering why.
As of mid-2025, the average residential rate was hovering around 22.79 cents per kilowatt-hour (¢/kWh), according to data from the U.S. Energy Information Administration (EIA). To put that in perspective, it’s roughly 30% higher than the national average, a statistic consistently reported by energy market analysts. Understanding where those costs come from is the first real step toward getting a handle on your energy spending.
Why Are New Hampshire Electricity Rates So High?
The reasons for our high rates are a tangled web of regional infrastructure, the fuels we rely on, and the way our market is structured. It’s not a simple picture. Unlike states with a single, heavily regulated utility that sets one price for everyone, New Hampshire has a deregulated market.
Think of it like this: in a regulated state, everyone buys their groceries from one giant supermarket with fixed prices. Here in New Hampshire, it’s more like a sprawling farmers' market. You can shop around for your produce (the electricity supply) from different vendors, but everyone still has to pay the market owner (your local utility) for the building and the aisles (the poles and wires that deliver the power).
This setup is designed to create competition, but it doesn’t magically erase the fundamental costs of generating power and getting it to New England.
The Main Drivers of High Costs
A few key things really drive up the NH electricity rates compared to other parts of the country. A huge piece of the puzzle is our region's heavy reliance on natural gas to generate power. According to ISO New England, the region's grid operator, natural gas fueled over half of the electricity generated in the area in recent years. When global natural gas prices spike—due to weather, demand, or geopolitics—New England feels it directly in our electric bills.
On top of that, the cost of keeping the regional power grid reliable and up-to-date is shared by everyone in New England. These transmission costs, which are absolutely essential for preventing blackouts, are baked right into the "delivery" side of your bill. When you add it all up, it creates a pretty high starting point before you even pick a supplier. You can get a deeper sense of how state-level energy decisions play out by reading our report on the state's offshore wind policy reversal.
Understanding Your Bill and Your Choices
It’s easy to feel powerless, but it's crucial to know which parts of your bill you can actually control. The infographic below shows how your rate (what you pay per unit) and your usage (how much you use) combine to create your final monthly bill.
Here's the key takeaway: while you can’t change the cost of maintaining the regional grid, you have direct control over two things: your own consumption and, because of deregulation, the rate you pay for your electricity supply.
Interestingly, despite the high rates, New Hampshire residents actually use less electricity per person than in most states. A big reason for this is that over 40% of households use fuel oil for heating, according to the EIA, which lowers overall electrical demand, especially in the winter. The state's deregulated market is a reflection of a long-held "Live Free or Die" value of choice, empowering you to shop for a better deal. You can see how NH rates stack up against others on EnergyBot.com.
Breaking Down Your New Hampshire Electric Bill
Your bill really comes in two main flavors: the cost of the actual electricity and the cost to get it to you. This table lays it out so you know exactly what you're paying for and where you have some control.
| Bill Component | What It Covers | Who Sets the Rate? | Can You Change It? |
|---|---|---|---|
| Supply Services | The actual cost of generating the electricity you use. This is the "product" itself. | Your chosen competitive electricity supplier (or the utility's default rate). | Yes. You can shop around for different suppliers to find a lower rate. |
| Delivery Services | The cost of moving electricity from power plants to your home through the grid (poles, wires, substations). | Your local utility company (e.g., Eversource, Unitil), approved by state regulators. | No. This rate is fixed for everyone in your utility's service area. |
Separating these two parts is the secret to understanding your bill. Focus on what you can control: shopping for a better supply rate and reducing your overall energy usage. That’s where you’ll find real savings.
How to Actually Read Your NH Electric Bill
Opening your monthly electric bill can feel like trying to translate a foreign language. It's a dense page of columns, unfamiliar terms, and various charges. It’s easy to just skip to the total amount due and feel a little overwhelmed.
But taking a minute to understand what you’re looking at is the first real step toward getting a handle on your energy costs. Let's break this document down, line by line.
Think of your bill like a receipt from a restaurant. You have the cost of the food you ordered, and then you have a separate cost for the service, the table, and all the restaurant’s overhead. Your electric bill works the exact same way.
The two most important sections are the Supply Charges and Delivery Charges. Getting your head around these two concepts is the key to understanding how NH electricity rates actually hit your wallet.
Your Supply Charge: The Cost of the Electricity Itself
This part of your bill is for the actual electricity you used. It's the "food" in our restaurant analogy—the product you consumed.
This charge is calculated by multiplying your total energy usage, measured in kilowatt-hours (kWh), by your current supply rate. A kWh is just a unit of energy; for a real-world example, running a 1,000-watt microwave for one full hour uses one kWh.
Your supply rate is simply the price you pay for each kWh. In New Hampshire’s deregulated market, you can either get your supply from the utility at their default "Energy Service" rate or you can choose your own competitive energy supplier. This is the one part of the bill where you truly have the power of choice.
Key Takeaway: The Supply Charge is where you have control. By shopping for a better rate from a competitive supplier, you can directly lower this part of your monthly bill without even changing your habits.
Your Delivery Charge: The Cost of Getting It to You
Now for the other half of the equation. The Delivery Charge covers everything it takes to get that electricity from a power plant all the way to your home. This is the "service and table" cost in our analogy. It pays for maintaining the massive, complex network of poles, wires, transformers, and substations that make up the power grid.
This charge is set by your local utility company—whether that's Eversource, Liberty Utilities, Unitil, or the New Hampshire Electric Cooperative—and it’s approved by state regulators. Unlike the supply charge, you can’t shop around for a different delivery rate. It’s a fixed cost for everyone in your utility's territory.
If you look closely at the delivery section, you might see a few smaller, itemized fees, all of which are defined and approved by the NH Public Utilities Commission (PUC):
- Distribution Charge: This covers the cost of operating and maintaining the local power lines right in your neighborhood.
- Transmission Charge: This pays for moving high-voltage electricity across the regional grid, from distant power plants to your local utility's system.
- Stranded Cost Recovery Charge: A lingering fee related to costs the utilities incurred before the market was deregulated.
- System Benefits Charge: This funds state-required programs for energy efficiency and assistance for low-income families.
Putting It All Together
So, how do these pieces add up to your total bill? The formula is actually pretty straightforward:
(Your Usage in kWh × Supply Rate) + (Your Usage in kWh × Delivery Rate) + Fixed Monthly Fees = Your Total Bill
To find your current supply rate, look for a line item showing a price in cents per kWh under the supply section. That's the number you'll use to compare offers from other suppliers.
Your bill will also clearly show your total kWh usage for the month. That number is the most critical factor you can control through conservation. By understanding these components, you turn your bill from a confusing document into a powerful tool for managing your energy costs.
Understanding Recent Trends in NH Energy Costs
If it feels like your electric bill only moves in one direction—up—you’re not imagining it. Looking at the last few years puts today's prices into perspective and shines a light on the bigger market shifts and regional pressures shaping NH electricity rates.
This isn’t about a single price hike. It’s a pattern driven by our region's energy challenges, and understanding that context is key. It explains why our bills look the way they do and why being an active participant in the energy market matters more than ever for Granite Staters.
The Upward Climb of Regional Energy Prices
New Hampshire has seen a steady upward trend in residential electricity prices, but this isn't happening in a vacuum. It’s part of a much broader New England story. The primary drivers are things like volatile natural gas prices—which fuel a huge chunk of our region’s power plants—and the massive cost of upgrading an aging power grid.
These infrastructure projects are non-negotiable. They’re what keep the lights on and prevent outages when we need power most. But the bill for these massive undertakings gets shared across the region, and it eventually shows up on our bills in the delivery charge.
On top of that, shifts in our energy supply, like retiring old power plants without bringing new sources online fast enough, create bottlenecks. That supply crunch pushes prices higher, especially during peak demand like a winter cold snap. Grasping how these pieces fit together is essential for anyone navigating New Hampshire's renewable energy future.
New Hampshire Rates in a National Context
To really get a handle on our local situation, it helps to zoom out and compare. The data shows a clear and steady climb. Between July 2024 and July 2025, for example, the average residential rate in New Hampshire jumped from 21.71 ¢/kWh to 22.79 ¢/kWh, based on federal energy statistics.
That’s a 5% increase in just twelve months, solidifying our spot among the top ten most expensive states for electricity. While our increase was more modest than Maine's nearly 24% jump in the same period, the upward trend is undeniable. You can get the full picture by exploring how state electricity rates compare across the nation.
The consistent rise in NH electricity rates underscores a critical reality for consumers: the era of "set it and forget it" energy billing is over. Proactive engagement with the market is now a key financial strategy.
What This Trend Means for You
This persistent climb signals that high energy costs are likely here to stay in the Granite State. But it also highlights the real power baked into our state's deregulated market.
While you can’t control the cost of a regional transmission project, you can control who supplies your energy and at what price. As default utility rates continue to climb, the gap between that standard rate and the offers from competitive suppliers can get pretty wide.
This isn't just a history lesson; it's your motivation to take action. It transforms you from a passive bill-payer into an informed shopper who can actively seek out better rates, putting you back in control of your budget.
Finding a Better Electricity Rate in New Hampshire
Alright, now that you’ve got a handle on how to read your bill and what’s driving the market, it’s time to take control. New Hampshire's deregulated energy market gives you the power to shop for your electricity supply, and that’s a huge opportunity to lower your monthly costs.
Think of it like this: you have to use the same roads (the utility's poles and wires) to get home, but you get to choose which grocery store you buy your food from. The state has actually made it pretty simple to compare your options.
Your Step-by-Step Guide to Shopping for Power
The New Hampshire Department of Energy runs an official, unbiased energy shopping website. This is your best and safest starting point because it lists every single registered competitive electric power supplier (CEPS) in one place. No guesswork needed.
Here’s a look at the official site where you can start comparing offers.
As you can see, the interface is simple. You just select your utility and customer type, and it pulls up a list of the current offers available to you.
Here's how to use it effectively:
- Go to the Official Site: Head over to the New Hampshire Department of Energy's "Shop for Electricity" page.
- Pick Your Utility: From the dropdown menu, choose your delivery utility (like Eversource, Liberty, Unitil, or the NH Electric Co-op). This makes sure you only see suppliers that serve your home.
- Choose Your Class: Select "Residential" to see plans for homeowners and renters.
- Compare the Offers: The site generates a table with all your options. The key columns to focus on are the Price per kWh, Term Length, and Rate Type.
- Calculate Your Savings: Grab your latest electric bill. Find the supply rate you’re paying your utility now and compare it to the Price per kWh offered by the new suppliers. That simple math will show you exactly how much you could save each month.
Fixed vs. Variable Rates: The Most Important Choice
As you look through the offers, you'll see two main kinds of plans: fixed and variable. Getting this one right is critical to avoiding a nasty surprise on your bill down the road.
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Fixed Rate: This is the straightforward option. You lock in one specific price per kWh for the entire contract term, whether it’s 6, 12, or 24 months. It’s like a fixed-rate mortgage—your supply cost is predictable and won’t budge, protecting you from sudden market spikes.
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Variable Rate: This rate can change every single month, swinging up or down with the energy market. They often lure you in with a super-low introductory "teaser" rate, but that price can shoot up without much warning. Think of it as an adjustable-rate mortgage—it can be cheaper at first, but it comes with a lot more risk.
For most people trying to keep their budget stable, a fixed-rate plan is by far the safer and more predictable choice. It takes the guesswork out of your bill and shields you from the price volatility that often drives NH electricity rates through the roof.
Reading the Fine Print: What to Watch For
Before you pull the trigger and switch, you have to look beyond just the price per kWh. The contract details, usually found in a document called the "Disclosure Label," contain the nitty-gritty terms that can affect your costs and flexibility.
Here are the big things to check for:
- Early Termination Fee (ETF): Does the supplier hit you with a fee if you want to cancel the contract before it's over? Many do, so you need to know what that number is.
- Automatic Renewal Clause: Pay close attention to what happens when your contract ends. Many plans will automatically renew you, but often at a much higher variable rate. Circle the date on your calendar a month or two before your term is up so you have time to shop for a new plan or cancel.
- Introductory Offers: Be skeptical of rates that seem too good to be true. They’re almost always variable rates that will jump up dramatically after the first month. Always confirm that the attractive price is fixed for the entire contract.
By using the state's official comparison tool and taking a few minutes to vet the contract, you can confidently switch suppliers and start trimming down your electric bill.
Proven Strategies to Reduce Your Energy Use
Switching electricity suppliers is a smart move, but it's really only half the battle. The most powerful way to slash your bill is to simply use less power. When you combine a better rate with lower consumption, you're hitting the problem from both sides—and that's where the real savings kick in.
The good news? Lowering your usage doesn't have to mean big sacrifices or shelling out for expensive upgrades right away. It starts with small, deliberate habits that add up. From there, you can move on to some low-cost investments and, eventually, bigger projects that offer true long-term freedom from high NH electricity rates.
No-Cost Changes with Big Impact
The easiest wins are always the free ones. These are all about tweaking your daily routine to cut waste and make your home run a little smarter. You'd be surprised how much these little adjustments can shave off your monthly kWh consumption.
- Adjust Your Thermostat: This is the heavyweight champion of no-cost savings. Bumping your thermostat up a few degrees in the summer and down a few in the winter is one of the most effective things you can do. Every single degree makes a difference.
- Run Full Loads: Your dishwasher and clothes dryer are two of the hungriest appliances in your home. Make every cycle count by waiting until they're completely full to run them.
- Clean Dryer Vents: Get in the habit of cleaning the lint from your dryer’s filter after every single load. A clean filter means better air circulation, which helps clothes dry faster and with less energy.
Smart Investments for Immediate Savings
Once you've nailed down the free habits, the next step is to make a few small, strategic investments that quickly pay for themselves. These are affordable upgrades you can tackle over time, room by room, to steadily lower your electricity use.
Upgrading your lighting is a perfect place to start. Swapping out those old incandescent bulbs for modern LEDs is a weekend project with a fast payback.
An ENERGY STAR-certified LED bulb uses up to 90% less energy and lasts 25 times longer than one of those old-school incandescent bulbs, a claim backed by the U.S. Department of Energy. Over its lifetime, a single LED can save you more than $50 in electricity costs.
Another simple but effective move is to use power strips for your electronics. Things like TVs, game consoles, and computers often pull "phantom" or "vampire" power even when they're turned off. Plug them into a power strip and just flip the switch when you're done—it completely cuts off that wasteful energy drain.
Long-Term Upgrades for Energy Independence
For homeowners ready to make a bigger dent in their energy bills, larger upgrades offer the biggest long-term rewards. These projects require more upfront investment, but they can dramatically reduce—or even eliminate—your dependence on the utility grid.
In 2025, the average New Hampshire resident spends about $226 per month on electricity, which comes out to $2,712 a year. To offset that cost, a homeowner might look at installing an 8.7-kilowatt solar panel system, which could run about $27,000 before any tax credits or incentives. It’s a big number, but it can lead to massive savings over the long haul by letting you generate your own power. You can get more specific New Hampshire solar and electricity cost insights on EnergySage.com.
But it's not just about solar. Improving your home's insulation and sealing up air leaks can slash the energy you need for heating and cooling. Upgrading to high-efficiency ENERGY STAR appliances—like refrigerators, heat pump water heaters, and modern dryers—also provides lasting savings. As more Granite Staters weigh these options, it's worth following the ongoing debate over new solar projects in rural NH.
Common Questions About NH Electricity Rates
When you start digging into ways to manage your NH electricity rates, a few questions always seem to surface. Getting straight answers is the first step to feeling confident about your choices. Let's tackle the most common concerns Granite Staters have when shopping for energy.
A big one is always about safety: can you really trust a third-party supplier instead of your utility? The answer is a hard yes. Every competitive supplier has to be registered and approved by the New Hampshire Public Utilities Commission. Plus, your local utility—whether it’s Eversource, Liberty, Unitil, or the NH Electric Co-op—is still the one responsible for the poles, wires, and getting your power back on after a storm.
What Happens After My Contract Ends?
Another worry we hear all the time is what happens when a supplier contract runs out. Do you get left in the dark? Absolutely not. If your plan expires and you haven't renewed or picked a new one, one of two things will happen.
Most of the time, the supplier will just roll you onto a variable, month-to-month rate. Be warned: this rate can be a lot higher than the fixed price you were paying. In other cases, if the service is stopped, your account simply defaults back to your utility's standard energy rate. You'll never lose power, but you’ll almost certainly pay more.
Key Takeaway: Circle your contract end date on a calendar. That simple reminder gives you plenty of time to shop for a new fixed-rate plan and dodge getting pushed onto a more expensive variable rate.
Your Utility Is Still Your Partner
It’s important to remember this: switching your energy supplier doesn't change who you call when the lights go out. Your relationship with your local utility for delivery and emergencies stays exactly the same.
They own and operate the physical grid—the infrastructure that actually brings electricity to your home. Think of them like the postal service. You can order a package from any online store you want, but the same mail carrier is still the one who brings it to your door. Your utility still reads your meter, fixes outages, and sends you one consolidated bill. Shopping around just changes the price you pay for the electricity itself, giving you control over a big piece of your monthly budget.
At Granite State Report, we believe an informed resident is an empowered one. For more in-depth coverage of the policies and issues affecting your community and your wallet, visit us at https://granitestratereport.com.
