Report: Energy prices higher in Blue states due to policies

States prioritizing renewables over reliability, affordability see higher costs

by Tate Rosentreter, The Center Square, Aug 13, 2026

(The Center Square) – Energy prices are higher on average in Blue states than they are in Red states because of energy policies that prioritize renewable sources such as wind and solar “over reliability and affordability,” two energy groups argue in a joint report and website.

Energy policy analyst Sarah Maltalbano at Always On Energy Research – one of the two groups involved in the website and report – told The Center Square: “Our report shows that state-level energy policies are major drivers of consumer costs.

“High-regulation Blue states typically have far higher electricity prices than lower-regulation Red states,” Maltalbano said. 

“For example, California’s rates are the second-highest nationwide at 27.63 cents per kWh in 2025, more than double the national average of 13.63 cents, and have risen 11.05 cents per kWh since 2018 (the largest absolute increase of any state), a 29.9% real increase after inflation,” Maltalbano said.

Maltalbano also used New York as an energy example, stating that “New York ranks 8th-most expensive at 21.62 cents per kWh (59% above the national average), up 6.79 cents since 2018 and 13.6% higher in real terms.”

“By contrast, the Southeast, which predominantly votes Republican, enjoys some of the lowest wholesale prices,” Maltalbano said. “Many of its states have avoided aggressive climate mandates and keep public service commissions focused on least-cost reliability and rate stability rather than carbon goals.” 

Manager of policy and communications Alex Stevens at the Institute for Energy Research – the other group involved in the report and website – told The Center Square that “for the last two decades, Blue states have prioritized renewable energy sources such as wind and solar over reliability and affordability.”

“During the first Trump administration, many liberal states enacted aggressive 100% renewable- or carbon-free-electricity mandates that their residents are now paying for,” Stevens said.

“These states prioritized climate targets over cost and reliability and were unprepared for a world with growing electricity demand,” Stevens said.

“The consequences have become severe as targets ramp up and electricity demand grows,” Stevens said. 

Stevens also used California as an example for his point, stating: “California, an early adopter, is showing the rest of the country where those mandates lead; states that adopted them later are already catching up in price.”

Always On Energy Research and the Institute for Energy Research’s expanded website launched Wednesday. Iy features a map of the United States ranking all 50 states and the District of Columbia by electricity prices. 

States are also analyzed for their energy policies and are measured by things such as renewable portfolio standard, net metering, utility net zero pledges, natural gas access, and more for the index. 

According to the online map, North Dakota has the lowest energy prices, while Hawaii has the highest; California has the highest prices of the contiguous states.

The energy groups’ report showed that 86% of states with “electricity prices above the national average” are reliably Blue, while 80% of the 10 states “with the lowest electricity prices are reliably red.”

Vice president of research Isaac Orr at Always On Energy Research noted to The Center Square that “even in Red states, utilities pursuing their own climate commitments are raising costs to meet carbon-reduction goals.” 

“Prices will rise substantially if these monopolies are allowed to finance their own Green New Deals on the backs of families and businesses,” Orr said.

The Center Square reported last month that gas prices are higher on average in Blue states than in Red states due to decades of policy choices.