Compare the Best Electricity Rates in Virginia in 2024

If you plan on moving to Virginia, you will be surprised to know that this state has some of the lowest electricity rates in the US. The state of Virginia also has a lot more to offer to all newcomers, so if you would like to move here, or live here and are looking forward to switching your energy contract, read on. We will look at Virginia electricity rates in detail. 

Virginia Electricity Rates

The cost of electricity is one of the main expenses for most households and businesses, and it’s crucial to find the best rates and plans that suit your needs and budget. Understanding Virginia’s electricity rates and the various options available for choosing an energy provider is the first step towards finding the right plan and saving money on your energy bills. Whether you’re a homeowner, business owner, or tenant, here’s a comparison of Virginia electricity rates to the lowest and highest rates in the US:

You will notice that Virginia rates are on the lower side of the electricity price spectrum among the US states. This is great news for both residential and commercial (business) customers planning on moving to Virginia.

Average Electric Bill in Virginia

The average monthly residential electricity bill in Virginia is $120.  This energy bill ranks 8th in the United States. This is 15.89% higher than the national average of $107, making it relatively expensive compared to other states. Despite this, Virginia still ranks relatively well in terms of electricity consumption, with an average of 1,117 kWh/month, which is the 10th highest in the country. This is 23.7% higher than the national average of 903 kWh/month, which demonstrates that residents in Virginia are using more electricity than the national average.

However, it’s important to keep in mind that these numbers are just averages and may not reflect the individual experience of residents in Virginia. Factors such as your home size, the number of occupants, and the appliances used can all have a significant impact on the monthly electricity bill. In addition, the state’s climate can also play a role, as air conditioning usage can increase electricity consumption during the hot summer months. Overall, understanding these factors can help residents in Virginia make informed decisions about their energy usage and potentially reduce their monthly electricity bill.

Factors That Affect Electricity Rates

The energy rates you pay to your electric supplier depend on the pricing of all the materials and services that go into the electric service.. Below, you will find the complete list of factors that determine the energy price you. As electricity rates in Virginia are varied and you have the power to choose, always make an informed choice, but beware of any hidden costs and one-time payments.

Fuels

Fuels are a crucial component of the electricity generation process. The cost of fuels makes up a significant portion of your energy bill, which means that fluctuations in fuel prices directly affect the price of electricity. The use of fossil fuels like coal, oil, and natural gas to generate electricity has a large carbon footprint, making the shift toward renewable energy sources crucial for a sustainable future. 

The modernization of the electric grid and increased use of renewable energy sources like wind, solar, and hydro is expected to bring down energy rates in the future since renewable energy sources do not require any fuel to generate electricity. To save money in the meantime, it is recommended to choose lower-priced energy rates and be mindful of how you use electricity.

Power Plant Prices

Even with the latest technology, power plants still have operational costs that need to be covered. These costs include maintenance and upkeep, as well as the costs associated with running a business. All of these costs are reflected in the price you pay for electricity through your energy plan. It is important to understand that these costs are necessary to ensure a reliable electric supply for all customers. As they are included in the kWh price, energy savings mean sparing your wallet as well. By reducing energy consumption, you can also reduce your carbon footprint.

Transmission and Distribution Area System

Your local transmission and distribution system is another important factor that affects the price you pay for electricity. The charges for the use of these systems make up a portion of the electricity rate you pay and can be found on your monthly bill, usually under the heading of TDU or utility delivery charges. It is important to understand these charges and ask questions if you have any concerns. Your utility customer care center can offer instructions on how to better understand the charges and find ways to reduce your energy costs. By taking control of your energy consumption and being informed about the different charges, you can make an informed choice when selecting an energy plan that suits your needs.

Area Regulations

Local area regulations play an important role in determining the price of electricity you pay. With so many energy products and suppliers available, there was a need to standardize these products and protect customers from misleading information or hidden charges. Local area regulations have been imposed to help understand energy supplier options and energy plans. 

These regulations usually dictate the energy price and cap off the amount you can pay for an early termination fee and per kilowatt hour of power you use. They also dictate the conditions of your contract and how the information will be presented to you when you shop for electricity. By being aware of these regulations and choosing an energy plan that aligns with your needs, you can ensure that you are paying a fair price for electricity.

Weather Conditions

Local weather conditions can also have an impact on the price of electricity. Extreme weather events like the Texas February 2021 outages. Here, extreme weather froze gas pipes and left many without access to electricity, highlighting the impact that weather can have on energy prices. Similarly, particularly hot weather can also increase energy prices. Whenever there is extreme weather, electricity prices are subject to these fluctuations in weather patterns. 

Types of Electricity Plans in Virginia

In order to make the best choice for your energy plan, it’s important to consider multiple factors beyond just the electricity rates. One of the key considerations is the type of energy plan, as there are many options available including fixed-rate, variable-rate, green energy, prepaid, business, and renewable (green) energy plans. The contract term is also a factor to consider, as different lengths of energy plans ranging from 3 months to 5 years will include different pricing and be suited to different needs. Additionally, it’s important to think about the type of energy you want, whether it’s renewable or non-renewable, as well as the reputation of the power provider, which can be evaluated by looking at both their website and online reviews. Finally, it’s also important to consider the energy products they offer, such as freebies, smart thermostats, free energy audits, etc.

Fixed-Rate Plans

A fixed-rate plan is an attractive option for many Virginia homeowners, as it provides stability and peace of mind when it comes to the cost of electricity. With this type of plan, you can avoid the surprise of a high electricity bill at the end of the month, which is a risk associated with variable-rate plans. The cost of electricity varies from month to month, depending on the generation of energy you consume, but with a fixed-rate plan, you can lock in an electric rate per kilowatt-hour (kWh) of energy. This way, you’ll know exactly how much you’ll be paying for your energy use each month, regardless of fluctuations in the cost of electricity.

Variable-Rate Plans

With a variable-rate energy plan, the cost of electricity can fluctuate each month based on demand. During periods of low energy demand, like autumn and spring in most US states, you may be able to save money compared to the average rates. However, during the winter and summer months, electricity rates are often on the rise and during extreme weather events, you may end up paying significantly higher rates which could cancel out any previous savings. For this reason, this type of energy plan is not recommended.

Prepaid Energy Plans

In Virginia, prepaid energy plans might not be the best option for those looking to save money on their electricity costs. These plans can come at a higher rate per kilowatt hour compared to other plans but offer the advantage of giving you control over your monthly energy expenditure. With SMS notifications and energy provider apps, you can keep track of the number of kilowatt hours you have remaining on your prepaid plan. This allows you to better manage your energy use throughout the year and avoid unexpected electric rate charges.

Business Energy Plans

For business owners in Virginia, business energy plans are the ideal option for electricity. It’s important to note that finding the best business energy plan online can be challenging, so it’s advisable to reach out to several power providers and see what offers they have available. Given that businesses tend to use more energy than the average household, energy quotes will be customized specifically to your business.

The benefits of choosing a business energy plan are numerous. Power providers may offer additional benefits and freebies, including cost-saving opportunities. For example, a free energy audit could help streamline your business and optimize energy expenses. Additionally, some power providers may offer free electricity during nights and weekends, which can be a great option for businesses that are closed during these periods, enabling you to run your CCTV and security lights without any additional cost.

Green Energy Plans

In Virginia and across the country, homeowners and businesses have the option to choose green energy plans to power their homes and offices. These plans allow for the purchase of clean, renewable electricity, helping to reduce carbon footprints and fight against climate change. While the cost per kWh of green energy may be slightly higher compared to other rates, it’s expected to become more affordable in the future. Both fixed and variable rate options are available for green energy plans, giving consumers the flexibility to choose the best plan to suit their needs and budget.

Energy Deregulation in Virginia

Energy deregulation in Virginia is a policy that allows for a competitive marketplace for the sale of electricity. This means that the state’s residents and businesses have the option to choose their electricity provider, instead of being limited to only one energy provider. This competition creates incentives for energy providers to offer better prices, plans, and services to customers. 

By opening up the energy market to competition, customers are able to benefit from a wider variety of energy plans and choose the one that best fits their needs and budget. Furthermore, deregulation encourages investment in new energy technologies and increased energy efficiency, which can lead to a more sustainable energy future for Virginia. Overall, energy deregulation in Virginia provides greater choice, competition, and innovation in the state’s energy market, resulting in better outcomes for customers and the environment.

How To Find the Best Energy Plan?

Virginia, when considering a switch to a new energy provider, it’s important to have a clear idea of what kind of energy plan you want to choose. There is a variety of factors to take into account, including the type of electricity, whether renewable or nonrenewable, the contract term, and the type of energy plan, either fixed or variable-rate.

Additionally, it’s worth considering any freebies or time-based tariffs, such as free energy products like Google Nest or other smart devices that can help you save energy, or a free energy audit, especially if you’re running a business. Lastly, it’s crucial to look at the energy rate, or how much you’ll be paying per kWh of electricity used. Having this data in mind will help you make an informed decision and find the best energy plan.

How To Switch Your Electricity Provider?

Switching energy providers in Virginia can be a straightforward process if you follow these steps:

1. Research and compare electric rates: Start by researching different energy providers and compare their electric rates, including the average cost per kilowatt-hour (kWh). Take your time to understand the rates and make an informed decision. 
2. Determine your energy usage: Knowing your average energy usage over the past year will help you to choose an energy plan that suits your needs. 
3. Choose a new energy provider: Based on your research and energy usage, select a new energy provider and plan that works for you. Make sure you understand the rates and contract terms.
4. Contact your new energy provider: Contact your selected energy provider to finalize the switch. You may be required to provide some personal and billing information.
5. Confirm the switch: Once your new energy provider has all the necessary information, they will handle the switch and inform you when it will take place.
6. Monitor your bills: After the switch, keep an eye on your energy bills to make sure you are being charged the right rates.

By following these steps, you can switch your energy provider in Virginia and start enjoying lower electric rates and a better energy plan.

Solar Energy in Virginia

If you’re looking to save on your electric bills and reduce your carbon footprint, solar energy may be a great option for you. Every hour, the sun provides more energy than the entire human population uses in a year. There are technologies that have been developed to harness this energy, including photovoltaic systems, solar hot water, and space heating and cooling. 

If we assume a 1.2% annual increase in electricity costs, the average monthly bill can be expected to reach $150 after 10 years, $200 after 20 years, and $250 after 30 years. By installing solar panels, you can reduce or even eliminate your electric bill, effectively paying upfront for the electricity you’ll use over the next 25 to 30 years.

By investing in solar, you can save money on your electric bills over the long term. According to the calculation, if you were to invest in solar today, you could save approximately $26,000 after 30 years, compared to paying the average monthly electricity bill in Virginia without solar. Not only does this represent a significant saving over time, but it also helps reduce your carbon footprint and supports the use of renewable energy.

About Virginia

If you plan to move to Virginia, it is a great state with many opportunities and a strong economy. Whether you’re looking to start a family, further your career, or run a business, Virginia has a lot to offer. With a diverse range of industries, a highly educated workforce, and a growing economy, it is a great place to call home. In addition, the state’s relatively high average monthly electricity bill presents an opportunity for you to save money by investing in solar energy.

Popular ZIP Codes

If you’re planning to move to Virginia, there are many great neighborhoods to choose from that offer a range of activities and attractions. For those interested in culture and history, neighborhoods near the Virginia Museum of Fine Arts in Richmond (ZIP code: 23220) or the National Museum of the Marine Corps in Triangle (ZIP code: 22172) are a great options. For those who enjoy outdoor activities, neighborhoods near popular parks such as George Washington Memorial Parkway in Northern Virginia (ZIP code: 22209) or James River Park in Richmond (ZIP code: 23225) are a great choice. 

FAQs

Conclusion

Regardless of what your plans are, if you want to move to Virginia, you will be met with plenty of opportunities for outdoor and cultural activities and low energy bills. Virginia also offers a lot of rebates for solar installations, so if you like nature and want to keep it the way it is, make sure to check them out. Life in Virginia can be comfortable and cheap, while the economy is good and enables everyone to save and invest. 

Updated on 02-28-23