What Is The Average Cost of Electricity Per Month in Chicago?

A combination of historic infrastructure, economic development, and changing policies forms Chicago’s energy landscape. Being one of the biggest cities in the United States, it greatly influences the broader energy conversation and shapes national and regional patterns. In this post, we’ll look at Chicago’s average cost of electricity per month, focusing on all the factors that affect how much consumers pay.

How much is electricity per month? From pricing policies to several energy sources running Chicago, the state’s energy system is multifarious. We will look at how businesses and homes consume energy, as well as the rules and laws controlling their cost and use.

This article explores the possibilities and difficulties of electric billing in Chicago, together with tips and ideas to help businesses and households control and lower their average electricity bills.

How To Guarantee Chicago’s Best Electricity Rates

Illinois is one of several states with a deregulated energy market, meaning that you can select your energy provider and the individual plan. This is a primary factor that influences electricity costs for both households and businesses.

Your electricity bill per month depends on your supplier and the utility’s energy distribution costs, which the Illinois Commerce Commission regulates. Although Commonwealth Edison (ComEd) serves many Illinois people, other well-known utility companies, such as Ameren Illinois and MidAmerican, may have higher or lower rates. Plans and electricity providers, however, can charge anywhere between 10.5 and 19.4 cents.

Chicago’s average electricity price is 16.1 cents per kilowatt-hour (kWh) as of December 2024, which is 1.5 cents (8.5 per cent) less than the national average of 17.6 cents per kWh. Over the past five Decembers, electricity costs in the Chicago area have fluctuated between 14.1 and 16.1 cents per kWh.

Source: U.S. Bureau of Labor Statistics

 

Apart from the utility company, several additional elements can influence your Chicago power use. If you know your expenses, you can more fairly project them. Let us examine them more closely.

Factors Affecting Chicago’s Residential Energy Consumption

Many homes get the energy plan with the lowest per-kWh pricing. This is understandable, but additional important considerations can impact the total cost. Price matters, but average kWh per month and contract terms affect your monthly or annual electricity bill. Below, we’ll explain how these elements affect your experience and energy expenses.

The Energy You Use

The average monthly energy use of your home should be considered first. This is crucial since many Chicago electrical companies offer tiered plans that charge households based on the average kWh per month. Tiered plans typically cost the lowest per kWh to consumers who use 721 kWh a month. A non-tiered plan can save you much money if your usage is well below or beyond that limit.

The time of day you spend most energy is also important. Some providers utilize time-of-use (TOU) rates, which vary the electricity cost per kWh depending on when you consume the electricity. The ICC doesn’t regulate peak and off-peak times; thus, they vary by provider. Check your provider’s peak and off-peak hours — a TOU structure may be beneficial if you use energy mainly during off-peak.

Contract Length

Consider the length of your power company’s contract. Some plans have no terms, while others lock you into a fee for three months to three years. Early termination costs apply if you break your contract early, although local energy prices may rise, and save you money. Additionally, longer contract lengths usually result in a lower price per kWh.

Apart from length, other terms of the contract should be given thought. Your long-term electricity prices per kWh might be greatly impacted by sign-up fees and initial rates that vary for a few months to a year.

Electricity Plans in Chicago

Chicago residents can tailor their electricity plans to their usage, cost, and sustainability needs. Chicago has several electricity plans:

• Fixed-Rate Plans

A fixed-rate electricity plan guarantees a price per kWh for the contract, usually 12, 24, or 36 months. This means market swings won’t affect your rate, offering you predictable electricity prices during the contract. Fixed-rate plans are perfect for budget-conscious clients who avoid seasonal demand and energy market price surges.

• Variable-rate plans

Market circumstances, demand, and other factors affect the price per kilowatt hour in a variable-rate energy plan. Demand might surge during summer heatwaves or winter cold snaps, raising the rate. Although variable-rate plans offer lower starting rates, their erratic pricing makes them inappropriate for consumers on a tight budget.

• TOU Plans

The average utility bill can vary based on the time of electricity usage. Time-of-use (TOU) programs charge various fees for power used at different times. Electricity costs less overnight and more during peak hours (afternoons and evenings). Households that can operate dishwashers or laundry machines at night to take advantage of lower rates should choose this plan.

• Renewable energy plans

Chicago electricity suppliers often use wind, solar, or hydroelectric power in their plans. Environmentally minded consumers who want to lessen their carbon footprint and promote clean energy may like these “green” or “renewable” plans.

• Prepaid Power Plans

Prepaid electricity programs let customers prepay for electricity, like prepaid phone plans. This option benefits people without monthly bills or needing energy cost flexibility. Customers pay a predetermined amount, and the plan deducts charges based on average kWh usage per month.

• Budget Bills

Budget billing plans average annual energy consumption and spread the charges evenly throughout the year, helping to reduce electricity price volatility. Your fixed monthly payment based on average usage enables you to control your electricity expenses, particularly in seasons of peak consumption, like winter and summer. At year’s end, any overpayments and underpayments are reconciled, and your monthly payment may be adjusted.

Every plan has special advantages and flexibility, letting Chicago residents select one that best matches their environmental choices, money, and consumption. Choosing the correct strategy will enable you to control your power use and save money.

How Solar Can Help Lower Electricity Bills

When considering solar panels, you might ask: “What is the real saving and is it worth it?”. The answer is yes, but savings depend on energy usage, panel type, components, and system size. Let us review some typical Chicago household statistics. Based on your average kWh per month, you can estimate your savings by comparing the cost of electricity per kWh before and after installing solar panels.

Source: SaveOnEnergy

 

It looks like a big investment. Indeed, the initial price is a big sum of money. Still, you should consider the incentives and solar programs supported in Chicago to promote going solar and make solar energy more affordable.

The Federal Solar tax credit will reduce the price by 30%, making a 7 kW system cost around $18,420. Additionally, Chicago residents can use the Net metering program to send extra energy to the grid. Installing a solar system with battery storage offers even greater benefits — energy independence and reliable backup power during outages.

The average payback period in Chicago is 12 years, with thousands of dollars in savings expected over the panels’ 25-year lifespan. It’s a long-term investment that brings energy independence, lowers carbon emissions, and supports a greener future.

Why Solar is the Smart Choice for Chicago Homeowners

Depending on factors such as energy use, the size of the home, and the provider, the average kilowatt usage per month in Chicago can vary. Additionally, there are a variety of pricing plans and programs for electricity that are available to assist you in managing your spending. 

Everyone interested in achieving long-term financial gains can benefit from installing a solar system because it can help them become more independent of the grid, reduce their reliance on unpredictable energy bills, and save a lot of money over time. If you invest in solar energy, you gain control over your power consumption, manage your average kWh per month, and enjoy reduced and more predictable bills for many years.

Don’t waste another second — get a free solar quote today!

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