Cost of electricity in State College, PA

Updated 10/6/2024

Why you can trust EnergySage

The data on this page comes from real solar quotes to real solar shoppers on the EnergySage Marketplace. We give you access to transparent information so you can confidently make informed energy decisions. Learn more about how our Marketplace works and how we make money.

On average, State College, PA residents spend about $182 per month on electricity. That adds up to $2,184 per year.

That’s 22% lower than the national average electric bill of $2,796. The average electric rates in State College, PA cost 15 ¢/kilowatt-hour (kWh), so that means that the average electricity customer in State College, PA is using 1,195.00 kWh of electricity per month, and 14340 kWh over the course of the year.

Electric rates in State College, PA

This data is aggregated over the past 6 months.

Key takeaways about electric rates in State College, PA

Over the next 25 years, you should expect to pay $85,300 on electric bills in State College, PA.
You can reduce your electric bill by using less electricity or by reducing the cost of your electricity (like by installing a solar system).
If you install a solar system, on average, you’ll break even on your solar investment in 11.20 years in State College, at which point you may not owe anything on your electric bills.

On this page

How much can you save on electric bills with solar in State College, PA?
Electric bills in State College, PA
Electric rates in State College, PA
How solar helps you save on electric bills
Frequently asked questions about electricity rates and solar

Electric bill savings with solar in State College, PA

Solar saves you money by reducing or eliminating your monthly electric bill. The amount that you can save with solar in State College, PA is based on two factors: how much you spend on electricity now and how much of your electric bill you can offset with solar.

Based on the intensity and amount of sunlight hours in State College, PA, the average electricity customer in State College, PA will need a 11.8 kilowatt (kW) solar panel system to offset 100% of their annual electricity consumption of 14340 kWh per year. On the EnergySage Marketplace, solar shoppers in State College, PA pay an average of $36,000 for a 11.8 kW solar panel system prior to incentives.

The savings from offsetting 100% of an electric bill with solar can add up fast! Assuming an 3.5% annual increase in electricity prices and that you install your system with a $0-down loan, you can expect to save $2,200 in your first year, $11,700 over five years, $25,700 over 10 years, and $61,900 over 20 years on electric bills in State College, PA. Over your system’s lifetime you’ll save more by financing your solar system with a cash purchase, but you won’t start saving in year one. Learn more about how to finance your solar panel system.

How much can you save by going solar in State College, PA?

Electric bills in State College, PA

factors that make up a total electric bill

Monthly electric bills are a product of how much electricity you use per month and your electric rate. In State College, PA, the average monthly electric bill for residential customers is $182/month, which is calculated by multiplying the average monthly consumption by the average electric rate: 1,195.00 kWh * 15 ¢/kWh.

Electric bills are designed to cover all of the costs of producing the electricity that you use, of running and maintaining the electrical grid to help prevent outages, and of any public benefit funds that promote things like renewable energy and energy efficiency. These costs are rolled into both fixed charges (i.e., monthly customer charges) and variable charges (i.e., ¢/kWh that you use). While fixed charges will remain the same from month to month, the portion of variable charges on your bill each month will change based on how much electricity you use. As a result, there are two ways to reduce your bills: by either using less electricity or by reducing the cost of electricity, by installing solar for instance.

Electric rates in State College, PA

The easiest way to compare the cost of electricity from one region to another is to look at the electricity rate. Residential rates in the U.S. range from 6 ¢/kWh to 71 ¢/kWh depending upon where you live, what types of power plants provide your electricity, and when during the day or year you’re consuming electricity.

The average residential electricity rate in State College, PA is 15 ¢/kWh, which is 15% lower than the average electricity rate in Pennsylvania of 17.91 ¢/kWh. The average residential electricity rate in State College, PA is 18% lower than the national average rate of 19 ¢/kWh.

How solar helps you save on electric bills

Solar panel systems help you save money by reducing your monthly electric bills. Although a $50 or $100 electric bill might not seem like much when you pay it each month, those bills add up quickly over ten, twenty or even thirty years: if you pay $100 per month in electricity now, you’ll pay over $62,000 on electricity over the next thirty years!

EXISTING ELECTRIC BILL	10 YEAR COST	20 YEAR COST	30 YEAR COST
$50	$7,000	$17,000	$31,000
$100	$14,000	$34,000	$62,000
$150	$21,000	$51,000	$93,000
$200	$28,000	$68,000	$120,000
$250	$35,000	$85,000	$150,000

Assuming a 3.5% annual increase based on inflation and average annual electric rate increases.

Installing solar allows you to reduce or even eliminate your electric bill: when you pay upfront for solar panels, you are effectively paying today for the electricity you’ll use over the next 25 or even 30 years. Calculating your savings from investing in solar is as simple as subtracting the amount you pay for solar from what you would have paid for electricity otherwise.

EnergySage can help you go solar and save!

We know electric bills add up over time, and going solar is a great way to save money while helping the environment. When you sign up on the EnergySage Marketplace, you'll be able to receive and compare solar quotes side-by-side from qualified solar installers in your area. We're here to help along the way - talk with one of our Energy Advisors to learn more about your unique quotes, any local solar incentives you may be eligible for, or any other questions about saving on electric bills with solar.

Frequently asked questions about electric rates and solar

What's the typical payback period for a solar system?

In 2022, the average solar payback period in State College is about 11.20 years – this is the point in time at which your solar investment will start to earn you money.

Will I still have an electric bill with solar?

In most cases, you will still have an electric bill with solar. Even if your solar system offsets 100 percent of your electricity use, as long as your property remains grid-connected, your utility will still send you a bill. However, it’s possible that your bill will be $0 or even negative if your electricity supply to the grid is more than you pull (depending on the incentives available in your location).

Will a solar loan be less than my electric bill?

In most cases, your monthly payment towards your solar loan will be less than your electric bill – this means that if you install a solar system with a $0-down loan, you can start saving immediately! However, you’ll still pay more over the lifetime of your system with a solar loan compared to an upfront cash payment due to the interest that accrues.

What are fixed and variable electric rates?

If you live in an area with retail energy providers (REPs), you may choose to switch from your standard electricity utility to a REP. There are two main options for REP contracts: fixed and variable rates. If you choose a fixed-rate plan, you’ll pay a fixed price per kWh that will remain throughout the duration of your contract. On the other hand, if you choose a variable rate plan, the rate you pay for energy will fluctuate based on the wholesale price of electricity from your energy company, which represents how much power plants charge electric companies to buy the electricity they produce.

How do demand charges work?

If you’re on a demand charge electric rate, your electric bill will be based on the maximum amount of power you use over a single time period (like an hour or fifteen minute period) in a given month. You’ll still be billed for your monthly consumption, but the rate you owe for consumption will be low compared to a typical electric bill; thus, the best way to reduce the amount you owe each month is to decrease the amount of electricity you use all at once – like by installing a solar or solar-plus-storage system.

What are time-of-use electric rates?

Time-of-use electric rates are an electricity plan designed to incentivize you to use less electricity when the cost of generation is high. Time-of-use rates follow a set schedule, resulting in your electricity provider charging you more for your electricity consumption when the cost of generation and demand for electricity are high (i.e., the afternoon of a hot summer day) and less when both of these are low (i.e., in the middle of the night). You can save money in two ways: by being thoughtful about when you’re running certain appliances and waiting for off-peak times when cheap electricity is available, and by installing a solar battery to reduce the amount of electricity you pull from the grid when rates are high.

How do solar batteries help avoid surging electric rates?

When your solar panels are producing more electricity than you’re consuming, you can use that excess energy to charge your solar battery. Now let’s say your electricity usage is more than your panels are able to produce when electric rates are surging – with a solar battery, you can choose to use the energy you’ve stored rather than pull from the grid, protecting you from surge rates and high energy costs, and getting you the best electric rate possible.

See the cost of electricity across Pennsylvania

Recommended for You