This Is the Average Energy Bill in Connecticut and How to Save

Energy prices in Connecticut are among the highest in the U.S. Recent rate hikes have pushed them even higher. Why are Connecticut residents paying more for electricity and what can you do about it?

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

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

Despite these challenges, there are strategies Connecticut residents can use to reduce their consumption, get a better rate, and pay less for electricity.

What is the average electric bill in Connecticut?

Connecticut residents pay much more for electricity than the national average, 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 U.S.

The table below shows the average electricity 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 — are contributing to higher bills for Connecticut residents. In fact, the average household in the state uses 20% less energy than other U.S. households, but average monthly electricity bills in Connecticut are still 30% higher than elsewhere in the country.

Buying Electricity in Connecticut

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

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

If you can buy electricity, look for several key features of each plan. Take a look at your current electricity bill and compare it to plans from other providers. You can opt for a fixed-rate plan, which offers a consistent rate and makes budgeting easier over the life of the plan. The other option is a variable rate, which goes up and down as the wholesale market shifts — meaning your rate will sometimes be higher or lower.

Leticia Colon de Mejias, founder of Energy efficiency solutionswhich performs home energy audits, energy efficiency upgrades and renovations throughout Connecticut, recommends the following services: 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 tariff board website.

Read the energy label or similar documents for the plans you are considering before making a decision. Pay attention to early termination fees, payment terms, and other charges. Also check the duration of your plan: if you let it expire, you may automatically be locked into a higher rate. Set a reminder to shop around again before it expires.

Solar panels get installed in Connecticut

If you’ve been thinking about getting solar panels in Connecticut, now might be a good time to do so. According to the Solar Energy Industries Association, the price of installing solar panels in the state has dropped nearly 50 percent in the past decade. Plus, the Inflation Reduction Act’s 30 percent 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 low-interest Smart-E loan from Connecticut Green Bank, which will provide up to $50,000 toward financing residential solar systems. Net metering, in which you sell excess energy generated by your panels back to the grid, can help Connecticut residents who install solar save even more money.

When CNET ranked states based on their residential solar incentives, Connecticut ranked 12th in the U.S. with a D.

Connecticut Electricity Bill Help

Both Eversource And Universal lighting 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 eligible residents to help pay heating bills. Applicants may also qualify for benefits such as replacement or repair of broken heating equipment, disconnection protection, and matching payment plans.
• Operation Fuel: Operation Fuel, a nonprofit organization, provides utility and energy assistance to Connecticut residents in need.
• Winter protection program: Eversource eligible customers can receive a moratorium on utility disconnections during the winter months without being charged late fees.
• Universal Illumination Discounts: The utility offers various rebates to Connecticut ratepayers for energy-efficient appliances and equipment, rebates on home energy assessments, demand response programs that reward households with smart thermostats, and free or low-cost energy efficiency and weatherization services for low-income households.
• Eversource Discounts: This Connecticut utility also offers free 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, which can also include weatherization measures, insulation and other energy-saving improvements.

Energy Saving Tips for Connecticut Residents

When it comes to lowering your electric bill, the rate you pay is only one piece of the puzzle. Strategies like installing smart technology, increasing energy efficiency, and other small changes can all reduce your household’s energy usage, which can make a significant dent in your monthly bills. The Inflation Reduction Act includes tax credits and rebates on energy upgrades to help you save even more.

Have an energy assessment carried out for your home

If you want to make your home more energy efficient, the best way to do this is to have an energy audit carried out.

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

Look for residential energy auditors who are BPI GoldStar Contractors and certified by the Institute for Building Performance.

Add insulation

“Insulation has a one- to three-year return on investment,” Colon de Mejias said. “It reduces heating and cooling costs by as much as 30 percent 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 your HVAC system uses. Insulation and weatherproofing measures are typically implemented first to make HVAC upgrades more effective.

Upgrade to a heat pump

“If you insulate your home, for example if you have electric heating, you should switch 100 percent to a heat pump,” Colon de Mejias said. “You save a lot of money by insulating your walls and switching from baseboard heating to a heat pump.”

Install a smart thermostat

Smart thermostats can help almost anyone save money by adjusting 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. These programs, also called virtual power plants, allow ratepayers to save money and earn rewards in exchange for allowing the utility to make small adjustments to the temperature in their home via a smart thermostat.

Behavioral changes

If you pay more attention to how you use electricity and adjust your energy usage accordingly, you can significantly reduce your energy consumption, resulting in lower bills. Colon de Mejias recommends making small changes: check that windows, doors, and attic vents are fully closed, turn the thermostat up a bit in the summer and down in the winter, and put on a sweater or blanket before turning up the heat.

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