Florida's electricity costs surge as affordability ranking drops to 34th in US

Florida's electricity costs have climbed over the past five years, making it one of the less affordable states for energy. A new report ranks it 34th in the US for energy affordability, with residential rates rising faster than in neighbouring Georgia and South Carolina. The state's heavy reliance on natural gas and its position as a net electricity importer add to the financial strain on households. Residential electricity prices in Florida have increased by 10.4% since 2019, reaching 15.92 cents per kilowatt-hour in 2024. This rise outpaces Georgia's 7.1% increase and South Carolina's 11.0% jump, though all three states depend largely on natural gas for power. The average retail price now stands at 12.53 cents per kilowatt-hour, contributing to Florida's 37th-place ranking for affordability last year.

Natural gas dominates Florida's energy mix, accounting for 77% of electricity generation. Solar, nuclear, and coal make up the rest, but the state lacks a Renewable Portfolio Standard or cap-and-trade policy. Instead, it maintains a net metering programme, allowing some energy cost offsets for consumers. Despite these measures, Florida remains a net importer of electricity, drawing power from other regions. The state's grid has also faced challenges, with 14 reported incidents in the most recent year. These disruptions, combined with global energy pressures—such as the US and Israel's February 2025 strikes on Iran—have further influenced fuel and electricity costs. Total retail sales in Florida reached 266.1 million megawatt-hours, reflecting high demand amid rising prices. The latest data comes from the *Energy Affordability 2026* report by the American Legislative Exchange Council. It compares 2024 electricity prices with 2025 fuel costs, highlighting how external conflicts and domestic energy policies shape affordability.

Florida's electricity rates continue to rise, driven by natural gas dependence and import reliance. The state's 34th-place affordability ranking underscores the pressure on households, especially as grid incidents and global energy tensions persist. Without stronger renewable incentives or policy shifts, costs are likely to remain a concern for residents and businesses.