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Energy Costs: New Hampshire Leads the Nation with Highest Residential Rates

Across the United States, residential energy costs have been on a steady rise, putting a strain on household budgets. Among the 50 states, New Hampshire stands out with the highest average monthly electricity cost for residential customers.

Factors Contributing to New Hampshire's High Energy Costs

Several factors contribute to New Hampshire's elevated energy prices:

  • Limited Natural Gas Availability: New Hampshire lacks abundant natural gas resources, relying heavily on imported gas from other regions. This dependence on imported fuel increases the cost of gas and electricity generation.

  • Cold Climate: The state's cold winters drive up demand for heating, leading to higher consumption and increased energy costs.

  • Aging Infrastructure: Many of New Hampshire's energy infrastructure, such as power plants and distribution networks, are aging and require expensive maintenance.

  • High Distribution Costs: The cost of delivering electricity to homes and businesses in New Hampshire is relatively high. This is due to factors such as the state's dispersed population and challenging terrain.

Impact on Consumers

The high energy costs in New Hampshire have a significant impact on residents.

  • Increased Household Expenses: Rising energy bills put a strain on household budgets, particularly for low-income families.

  • Reduced Economic Activity: High energy costs can discourage businesses from locating in New Hampshire, affecting economic growth and job creation.

  • Social Inequality: Energy costs disproportionately affect low-income households, exacerbating social and economic disparities.

State and Local Initiatives

Recognizing the burden of high energy costs, the state of New Hampshire and local communities have implemented several initiatives to address the issue:

  • Energy Efficiency Programs: State and local governments offer rebates and incentives for energy-efficient appliances, insulation, and other measures to reduce energy consumption.

  • Renewable Energy Support: New Hampshire promotes renewable energy sources such as solar and wind through tax credits and other financial incentives.

  • Community Solar: The state supports the growth of community solar projects, allowing residents to share in the benefits of solar power without installing panels on their own homes.

Comparison to Other States

New Hampshire's average residential electricity cost is significantly higher than the national average. According to the U.S. Energy Information Administration (EIA), the average monthly electricity bill for a residential customer in the United States is $117. In comparison, the average monthly bill in New Hampshire is $175.

Among the 50 states, New Hampshire ranks highest in residential electricity costs. Other states with high energy prices include Connecticut, Maine, and Massachusetts.

Long-Term Trends and Projections

The long-term trend in energy costs in New Hampshire is one of gradual increase. The EIA projects that electricity prices will continue to rise in the coming years, albeit at a slower pace.

The global energy crisis caused by the Russian invasion of Ukraine has put further upward pressure on energy prices, exacerbating the situation in New Hampshire.


New Hampshire's residential energy costs are the highest in the nation, driven by factors such as limited natural gas availability, cold climate, aging infrastructure, and high distribution costs. This has a significant impact on residents and businesses alike.

State and local initiatives are underway to address the issue through energy efficiency programs, renewable energy support, and community solar projects. However, long-term trends and the impact of global events suggest that high energy costs will continue to be a challenge for New Hampshire residents in the foreseeable future.

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