Utility Costs in Tennessee (TN)
The average household in Tennessee pays $233 per month for utilities, which breaks down to $135/mo for electricity (at 11.5¢/kWh), $60/mo for natural gas, and $38/mo for water. This is $14 (5.67%) below the national average of $247/mo. This ranks Tennessee #29 out of 51 states (1 = most expensive), with utilities consuming approximately 3.7% of the median household income. TVA provides affordable power. Hot summers drive AC usage. Low overall utility costs.
Utility Costs by City in Tennessee
The table below shows average monthly utility costs for 4 cities in Tennessee, sorted by total cost from highest to lowest. Costs can vary within a state due to different utility providers, local water systems, and microclimates. Nashville is the most expensive at $240/mo, while Chattanooga is the most affordable at $222/mo.
| City | Electric | Gas | Water | Total/Mo | Annual | vs. State Avg |
|---|---|---|---|---|---|---|
| Nashville | $138 | $62 | $40 | $240 | $2,880 | +$7 |
| Knoxville | $132 | $55 | $38 | $225 | $2,700 | -$8 |
| Memphis | $130 | $58 | $35 | $223 | $2,676 | -$10 |
| Chattanooga | $128 | $58 | $36 | $222 | $2,664 | -$11 |
How Tennessee Compares to Other States
Below is a comparison of Tennessee with five states that have similar total monthly utility costs. This comparison helps illustrate where Tennessee stands nationally and shows how the cost breakdown (electric vs. gas vs. water) can differ even when totals are similar.
| State | Electric | Rate | Gas | Water | Total/Mo |
|---|---|---|---|---|---|
| Tennessee (TN) | $135 | 11.5¢/kWh | $60 | $38 | $233 |
| North Carolina (NC) | $130 | 12.0¢/kWh | $60 | $42 | $232 |
| Illinois (IL) | $115 | 14.5¢/kWh | $80 | $40 | $235 |
| Louisiana (LA) | $140 | 11.8¢/kWh | $55 | $40 | $235 |
| Missouri (MO) | $125 | 12.5¢/kWh | $70 | $40 | $235 |
| Colorado (CO) | $115 | 14.2¢/kWh | $65 | $50 | $230 |
Utility Cost Breakdown for Tennessee
Electricity in Tennessee
The average electricity bill in Tennessee is $135/month, with a rate of 11.5¢/kWh. This is well below the national average rate of about 16 cents per kWh, making Tennessee one of the more affordable states for electricity. The total bill of $135/mo is below the national average of $137/mo.
Natural Gas in Tennessee
Natural gas costs average $60/month in Tennessee. This is near the national average, reflecting moderate heating needs and gas pricing. The national average gas bill is approximately $65/month.
Water in Tennessee
Water and basic sewer service averages $38/month in Tennessee. This is near the national average for residential water service. The national average water bill is approximately $45/month.
Estimated Utility Costs by Home Size in Tennessee
The averages above are based on a standard household. Here is how monthly utility costs in Tennessee typically vary by home type and size. These estimates apply the state's specific electric rates, gas costs, and water charges to different living situations.
| Home Type | Electric | Gas | Water | Total/Mo | Annual |
|---|---|---|---|---|---|
| Studio/1BR Apartment | $61 | $24 | $19 | $105 | $1,258 |
| 2BR Apartment/Condo | $88 | $33 | $25 | $144 | $1,734 |
| Small House (3BR) | $122 | $51 | $32 | $203 | $2,433 |
| Average House (3-4BR) | $135 | $60 | $38 | $233 | $2,796 |
| Large House (4-5BR) | $176 | $75 | $49 | $298 | $3,579 |
How to Save on Utilities in Tennessee
Based on Tennessee's specific cost profile, here are the highest-impact strategies for reducing your utility bills:
Maintain Low Electric Costs
Your state already has below-average electric costs at $135/mo. Maintain this advantage by using a programmable thermostat, switching to LED lighting, and running major appliances during off-peak hours when your utility offers time-of-use rates.
Check for Rebates and Programs
Contact your local utility provider in Tennessee about energy audit programs (often free), appliance rebates, weatherization assistance, and budget billing to smooth seasonal cost swings. Low-income households may qualify for LIHEAP (Low Income Home Energy Assistance Program) and WAP (Weatherization Assistance Program) benefits.
Frequently Asked Questions About Utilities in Tennessee
What is the average utility bill in Tennessee?
The average household in Tennessee pays approximately $233 per month for utilities, or $2,796 per year. This includes $135 for electricity, $60 for natural gas, and $38 for water. This is $14 below the national average.
How much is electricity per kWh in Tennessee?
The average residential electricity rate in Tennessee is 11.5¢/kWh, which translates to an average monthly electric bill of $135. This is well below the national average of approximately 16 cents per kWh.
Which city in Tennessee has the highest utility costs?
Among the cities tracked, Nashville has the highest average utility costs at $240/month, while Chattanooga has the lowest at $222/month. Costs can vary further depending on your specific utility provider and usage.
How can I lower my utility bills in Tennessee?
To reduce your utility costs in Tennessee, consider: upgrading to energy-efficient appliances (look for ENERGY STAR ratings), improving home insulation and sealing air leaks, using a programmable or smart thermostat, switching to LED lighting, and fixing any water leaks promptly. Check with your local utility for rebate programs and energy audit services.
Are utility costs in Tennessee going up?
Utility costs nationwide have been increasing at approximately 2-4% per year due to infrastructure investments, fuel costs, and growing demand. In Tennessee, trends depend on local factors including energy source mix, regulatory decisions, and weather patterns. States with hydropower or wind energy tend to see more stable pricing. Contact your local utility provider for rate change notices and budget billing options.
Compare Utility Costs Across States
Use our utility cost lookup tool to compare Tennessee with any other state, or browse all 50 states ranked by cost to see where Tennessee stands nationally. Understanding utility costs can help with budgeting, relocation decisions, and identifying savings opportunities.