Hawaiʻi pays 64% above national average for electricity

With an electricity bill averaging $213 per month, Hawaiʻi tops the nation with the highest electricity bills despite have over two times more renewable energy.

According to the U.S. Energy Information Administration (EIA) Hawaiʻi relies heavily on petroleum for 67% of its electricity generation and must import all of it since there is no local production.

While Hawaiʻi’s average monthly usage is lower than the U.S. average, its average rate per kWh is significantly higher, at 39.62 cents per kWh, which is well over double the national average of $137 per month.

Over the past decade, Hawaii’s electricity prices have surged by 50.75%, ranking as the 9th steepest increase nationwide.

To combat premium prices, Hawaiʻi is on the forefront of sustainability with 66.58% of its energy comes from renewable sources, which is over four times the national average.

Kauaʻi Island Utility Cooperative said 60% of its electricity comes from renewables and rates on Kauaʻi range between 33 and 39 cents, but the need for energy storage capacity becomes apparent when the sun doesn’t shine and the wind stops blowing.

In 2023, Governor Josh Green renewed Hawai‘i’s commitment to achieve the nation’s first-ever 100 percent renewable portfolio standards by the year 2045 through an Executive Order in January 2025.

With federal uncertainty regarding renewable energy and concerns over grid stability in the state, Green wanted to commit to expanding and accelerating Hawaiʻi’s renewable resource development, and has outlined priorities to reduce energy costs, prevent blackouts, and slash emissions for Hawaiʻi residents and businesses. 

The executive order, developed with the Hawaiʻi State Energy Office and the input of various energy stakeholders, outlines new policy objectives and directives for the state of Hawaiʻi. These include:

• Accelerating renewable development for neighbor island communities to hit 100% renewable portfolio standards from 2045 to 2035
• Setting a statewide goal of 50,000 distributed renewable energy installations (such as rooftop solar and battery systems) by 2030
• Directing state departments to streamline and accelerate the permitting of renewable developments to reduce energy costs and project development timelines. 

“Hawaiʻi needs to take some drastic steps to reduce energy costs, which have continued to rise and have contributed to the high cost of living for our people,” Green said. “We know that high energy costs in Hawaiʻi are due to our reliance on burning oil for electricity and old infrastructure, which is really unacceptable. We can and must do more to get this under control.”

Despite the federal administration signaling a turn away from renewables, Green is doubling-down on a diversified, renewable-centered approach to cut costs and emissions.

“This executive order represents the start of real action to lower costs, support a stable energy system, and reduce emissions,” said Chip Fletcher, the Governor’s climate advisor and interim dean of the School of Ocean and Earth Science and Technology (SOEST), University of Hawai‘i at Mānoa. “Governor Green is cutting the red tape to realize our shared energy goals, including the first-ever push to get neighbor island communities to energy independence a decade sooner.”

The order also calls upon the Hawaiʻi Public Utilities Commission and Hawaiian Electric Company for support in reducing redundancies and inefficiencies in energy permitting and to prioritize reduced energy costs and energy stability for Hawaiʻi’s people.  

“The goal of 50,000 distributed renewable energy installations before 2030 demonstrates the state of Hawaiʻi’s commitment to ensuring more affordable and resilient energy for Hawaiʻi’s people,” said Rocky Mould, executive director of the Hawaiʻi Solar Energy Association. “We are excited to aggressively expand opportunities for rooftop solar and energy storage and unleash its power and promise for the clean/decarbonized grid of the future under Governor Green’s leadership.”

According to Green, high energy costs are a drag on Hawaiʻi’s economy and can also have a massive impact on households and add additional tax burdens by increasing government operating expenses.

In February, the Hawaiʻi State Energy Office released a comprehensive alternative fuels, repowering and energy transition study that proposes an updated Hawai‘i energy transition strategy to improve electricity affordability and grid reliability, accelerate renewable energy adoption and support national security.

“Viable pathways exist that allow for the rapid replacement of costly and carbon intensive residual oil, offering cost savings to ratepayers while strictly adhering to our RPS targets,” said Chief Energy Officer Mark Glick. “The addition of highly efficient power generation and bridge fuels like natural gas can save money while the state transitions to the most viable firm renewable energy options as they become economical.”

To learn more about electricity costs and plans for the future, visit the Hawaiʻi State Energy Office website.