Cheapest electricity for running a heat pump
Reference 2,000 sq ft home · EIA prices · March 2026
Low electricity prices are the single biggest tailwind for a heat pump. These states have the cheapest residential electricity in the US, so a heat pump's per-BTU heating cost is lowest here - often beating every fossil fuel.
Source: EIA Electric Power Monthly, Table 5.6.A (residential). Data as of June 2026.
| State | Electricity ¢/kWh | Heat pump $/yr (ref.) |
|---|---|---|
| #1 North Dakota | 11.95¢ | $1,331/yr |
| #2 Idaho | 13.01¢ | $890/yr |
| #3 Nebraska | 13.10¢ | $896/yr |
| #4 Utah | 13.17¢ | $901/yr |
| #5 Iowa | 13.42¢ | $918/yr |
| #6 Missouri | 13.44¢ | $506/yr |
| #7 Montana | 13.48¢ | $1,501/yr |
| #8 Oklahoma | 13.56¢ | $511/yr |
| #9 Wyoming | 13.59¢ | $1,514/yr |
| #10 Arkansas | 13.63¢ | $514/yr |
| #11 Louisiana | 14.16¢ | $208/yr |
| #12 Nevada | 14.17¢ | $208/yr |
| #13 South Dakota | 14.29¢ | $1,592/yr |
| #14 Washington | 14.40¢ | $543/yr |
| #15 New Mexico | 14.81¢ | $217/yr |
Frequently asked questions
Which states have the cheapest electricity for a heat pump?
North Dakota tops this list. Low electricity prices are the single biggest tailwind for a heat pump. These states have the cheapest residential electricity in the US, so a heat pump's per-BTU heating cost is lowest here - often beating every fossil fuel. See the full picture on each state page.
How is this ranked?
Each state uses a reference 2,000 sq ft home at its default climate zone, priced at the state's EIA electricity, natural-gas, oil and propane figures, with a 95% AFUE gas furnace and a climate-appropriate heat-pump seasonal COP. It is an estimate - your home will differ.
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Source: EIA Electric Power Monthly, Table 5.6.A (residential) and EIA gas/oil/propane. Estimates only — see methodology and disclaimer.
Last updated: 2026-06-29