On average, yes. The U.S. Energy Information Administration (EIA) puts the average residential electricity price at 18.31 cents per kWh and the average commercial price at 14.53 cents per kWh. The electricity itself is identical — the gap comes from how each customer class is billed, and it explains a lot about what EV charging costs at home, at work and in public.
Key Takeaways
- EIA averages: residential electricity 18.31 cents/kWh, commercial 14.53 cents/kWh.
- The gap is rate design — delivery cost per unit and steadier load — not different electricity.
- Commercial bills add demand charges, so the per-kWh average is not the whole story.
- Cheap commercial energy is why free or at-cost workplace charging is common.
The Two Prices, Side by Side
These are national averages across many utilities and rate plans, so your own tariff will differ. They are still the right scale for comparing the three places you charge:
| Customer class | Average price (EIA) | Energy cost of a 40 kWh charge at that average |
|---|---|---|
| Residential (your home) | 18.31 cents/kWh | About $7.32 |
| Commercial (workplaces, public sites) | 14.53 cents/kWh | About $5.81 |
The 40 kWh figures are simple arithmetic on the two averages, shown as an example. Your bill is the only reliable source for your real rate.
Why the Commercial Rate Sits Lower
Utilities divide customers into classes, and each class has its own rate design. Three things push the commercial per-kWh average below the residential one:
- Delivery is cheaper per unit. A business takes power at higher voltage through one service connection and uses far more of it, so the fixed cost of serving that meter is spread over many more kilowatt-hours.
- Load is steadier. Commercial demand is concentrated in predictable daytime hours, which is cheaper for the grid to serve than sharp residential evening peaks.
- Rate design differs. Residential tariffs bundle many small-customer costs into the per-kWh price. Commercial tariffs separate them out — which leads to the catch below.
The Catch: a Commercial Bill Is Not Just per-kWh
The 14.53-cent average does not mean a business’s electricity is cheap in every respect. Commercial bills usually add demand charges: a fee based on the highest power the site draws at any moment. A row of chargers all running at once can set an expensive peak. That is why site operators care about load management, and why the price you pay at a public charger sits well above 14.53 cents — the operator also has to recover the equipment, installation, networking and maintenance behind the post, as our breakdown of how much charging stations charge explains.
What This Means for Where You Charge
- At work: energy at commercial prices is cheap enough that many employers give it away or bill it at cost, which is why free workplace charging exists at all. Our guide to planning a workplace EV charging program covers how employers set it up.
- At home: you pay the higher residential per-kWh rate, but nothing else — no operator margin, no session fees. For most drivers it stays the cheapest routine option.
- In public: the operator buys energy near commercial prices but sells you a service, not raw electricity. Expect a clear premium over both averages, as the comparison in free vs paid charging explained shows.
Chargers Built for Commercial-Rate Sites
Shared sites need chargers that meter each user and spread power across a limited supply. The EVDANCE EV-AC03201T dual-connector AC station runs two Type 2 connectors at up to 43 kW shared, with OCPP 1.6J and RFID so each session is billed to the right driver. The EVDANCE EV-ACT3204PE 22 kW wallbox adds RFID and app control for smaller workplaces. See the full commercial EV charging solutions page for site layouts.
Frequently Asked Questions
Is commercial electricity always cheaper than residential?
No. These are national averages across customer classes. Individual tariffs vary widely by state, utility and plan, and a specific commercial tariff can cost more than a specific residential one. Compare the actual rates on the two bills.
Can my home get a commercial electricity rate?
Normally not. The rate class follows the service and the meter, and utilities assign homes to the residential class. A home business usually still takes its house supply on a residential tariff; ask your utility if you think your service qualifies for anything else.
If businesses pay 14.53 cents, why does public charging cost so much more?
Because the energy is only one part of the price. The operator also recovers the charger, installation, network fees, payment processing, maintenance and demand charges. Our article on whether an EV charger installation is tax deductible covers one offset available to some businesses.
Related Reading
- How to Plan a Workplace EV Charging Program
- How Much Do EV Charging Stations Charge? Pricing Models Explained
- Do EV Charging Stations Cost Money? Free vs Paid Charging Explained
- Is EV Charger Installation Tax Deductible?
