Electricity Cost in Tennessee
The residential electricity rate in Tennessee is 13.18¢ per kilowatt-hour (kWh), ranking #11 cheapest among all 51 US states. The national average is 17.92¢/kWh, making Tennessee 26% below average.
13.18¢
Residential
#11
Price Rank
13.8%
Renewable
| Residential Rate | 13.18¢/kWh |
| Commercial Rate | 12.87¢/kWh |
| Industrial Rate | 6.74¢/kWh |
| US Average (Residential) | 17.92¢/kWh |
At 13.18¢/kWh, residential electricity in Tennessee is 26% below the U.S. average of 17.92¢/kWh — the 11th cheapest residential rate among 51 states and territories tracked.
Across rate classes, commercial customers pay 12.87¢/kWh and industrial customers 6.74¢/kWh — a 6.13¢/kWh gap that reflects the volume discounts large industrial loads receive. Renewables make up 13.8% of Tennessee's generation mix; the dominant source is nuclear at 42.3%, followed by coal at 22.9%.
In 2024, Tennessee generated about 76,167 GWh of electricity in total.
Source: U.S. Energy Information Administration, 2026.