Hawaii’s utility bills are exorbitant. Residents of the Aloha State, in particular, have the highest monthly energy bills in the country. According to a 2017 research by the US Energy Information Administration (EIA), the average monthly energy cost in Hawaii is $149.33. That’s over $38 higher than the national average of $111.67.
Electricity is also expensive in Hawaii. You’ll be spending a lot of money on your air conditioner if you don’t like the heat or humidity.
However, there is some variety amongst islands. Residents of Lanai spend an average of 35.40 cents per kWh, according to a 2017 report by Hawaii Energy. On Molokai, the average cost per kWh is 32.92 cents. Residents of Oahu pay an average of 22.63 cents per kWh, whereas residents of Maui pay 27.53 cents per kWh. The average cost of electricity on the Big Island is 30.93 cents per kWh. Consider that, according to the US EIA, the national average is 12.89 cents per kWh.
What is the average Hawaii utility bill?
Hawaii residents spend an average of $587.79 each month, according to a recent survey.
Residents spend an average of $110.76 per month for electricity, $72.10 per month for natural gas, $70.39 per month for water, $85 per month for cable TV, $60 per month for internet, and $14 per month for garbage and recycling. The average cost of cable is $60, but as more people cut the cord and move to streaming services, this may change.
How much does a single person’s energy bill in Hawaii cost?
Renting in Hawaii is far more expensive than on the mainland, and the cost varies greatly depending on location. A studio on Oahu, for example, might cost anywhere from $1000 to more than $1,600 per month, not counting utilities, which can cost roughly $150 per month for one person. A one-bedroom apartment or house can cost anywhere from $1500 to more than $2000 per month, while a two-bedroom apartment or house starts at $1,800. Looking for a brand-new, magnificent one-bedroom condo? You should budget at least $3,000 per month.
You can always live outside of Honolulu’s core or even consider the other Hawaiian Islands Hilo, on the Big Island, is about 49 to 56 percent less expensive than Honolulu and offers a laid-back and pleasant small-town vibe that may be more appealing than the city’s hustle and bustle.
If you’re seeking to buy, the median sales price of a single-family home in December 2020 was $870,000, a new high. On Oahu, the median condo sale price is $455,000. Despite the high prices, home and condo sales on Oahu continue to increase.
Alternatively, purchasing a plot of land and building your own home may be more cost-effective, depending on your region and general contractor. In this blog post, you can learn about the usual costs of building a home in Hawaii.
Hawaii citizens pay the highest monthly energy rates in the US when it comes to utilities. The average monthly energy cost in the United States is $168.13, according to the US Energy Information Administration. The national average is $117.65, therefore this is $50.48 more expensive.
Despite the high cost of energy, the sun shines 8 percent more in Hawaii than in other states, providing a potential for low-cost solar energy. In fact, Hawaii was the first state to announce a goal of generating 100% renewable energy by 2045.
Transportation
Let’s imagine you decide to reside somewhere else than Honolulu’s bustling downtown region; you’ll need to factor in the cost of owning and operating a vehicle. In Honolulu, gas costs around $3.16 per gallon as of January 2021. At $2.75 per ticket, taking the bus or, in Oahu, TheBus, may be a more cost-effective mode of transportation, however it may not be an enticing daily trip.
If you work in downtown Honolulu or Waikiki, you’ll almost certainly have to hire a parking place if your employer doesn’t supply one. Parking costs usually vary from $100 to $200. Those who live in a condo may be required to rent a stall at a similar price, depending on the association’s bylaws.
You might be able to use the Honolulu Rail Transit to work if you reside in Kapolei or on the ‘Ewa side of Oahu. However, there have been numerous delays in its development; for additional information, click here.
Groceries and Dining Out
as well as coffee cultivated in the area However, because products are imported from the mainland, Hawaii is the most costly place in the country to buy groceries. Hawaii’s groceries are extremely expensive, according to the Missouri Economic Research and Information Center’s 2020 Quarter 3 study. Hawaii was ranked 196.3 on a nationwide rating of 100, while California, Washington, and Oregon were placed 138.5, 111.3, and 134.6, respectively.
On Oahu, for example, a gallon of whole milk can cost $8.99, with the cheapest gallon costing roughly $5.50 at Costco. Broccoli costs $3.79 per pound, while bulk carrots cost $3.49. Yes, while shopping local is encouraged, Hawaii grown mangos cost around $6.99 per pound. It will cost around $6 for four rolls of toilet paper.
Eating out can rapidly add up. Breakfast will set you back $8 to $12, lunch will set you back $8 to $15, and dinner will set you back $15 to $30. (or more). However, because there is such a wide price range, many individuals may buy a plate lunch (white rice, macaroni salad, and a meat entre such as loco moco or teriyaki beef) and store it for lunch and dinner, or split the plate in half with a buddy.
Miscellaneous
Are you prepared for some fantastic news? Hawaii has one of the lowest property tax rates in the country, at 0.35 percent. The income tax rate varies between 1.4 percent and 11 percent.
Hawaii is attractive to seniors because it exempts Social Security retirement benefits and public pension income from state taxes. Income from private pensions and retirement savings accounts is fully taxed.
Hawaii residents who participate in employer-sponsored health coverage plans pay some of the lowest costs in the country, according to a Commonwealth Fund report. In Hawaii, insurance is often offered by one of two organizations: Kaiser Foundation Health Plan Inc. or the Hawaii Medical Service Association (HMSA). According to this analysis, the potential cost to employees in Hawaii is around 36% of the national average, at $4,664 (8 percent of median salary), compared to a nationwide cost of $7,240. (12 percent of median income). In 2017, Hawaii had the lowest single-coverage employee expenditures in the country, at $675, which was less than half of the national average of $1,415.
More good news: Hawaii is the healthiest state in the US, having won the title nine times since 1990. Low levels of air pollution, less mental stress, and a large number of primary care physicians can all contribute to low obesity and smoking rates.
Ways to Save
- In Hawaii, electric cars (EVs) are becoming increasingly popular. Electric vehicle owners are offered incentives such as free street parking and access to HOV lanes.
- Solar Panels – Hawaiian Electric Company offers a number of energy-saving programs to its consumers.
In Honolulu, Hawaii, what is the typical energy bill?
Residential customers in Hawai’i pay roughly 37 cents per kilowatt-hour of electricity, excluding rooftop solar. Taking into consideration refrigerators, water heaters, stoves, air conditioning, and other uses, the average Hawai’i family consumes approximately 18.5 kWh per day, resulting in a monthly payment of approximately $205.
That’s a lot of money, three to four times the average mainland price, and by far the highest of any state. Our mild temperature means we don’t have heating costs and can typically get by without air conditioning, so high electricity rates bite a little less here than on the mainland.
However, keep in mind that commercial businesses and industry consume about two-thirds of the state’s generated electricity, which affects the costs we pay for everything else. Businesses pay less for power than households, but the cost is still high, so it’s simple to see how high costs are a drag on the economy in Hawai’i.
Electricity prices are essentially equal to the cost of oil, which is used to generate the majority of our electricity, plus the cost of fixed costs such as power plants, the system, and grid management. These costs are fixed since they are unaffected by the amount of electricity generated and consumed. Because oil costs remain high, and because the fixed price of our infrastructure, averaged over the quantity of electricity we use, is very high and rapidly expanding, we have record high electricity prices.
Aside from oil, Oahu has one coal power station, which provides electricity at a lower cost. Hawaiian Electric also buys electricity via a number of power purchase agreements (PPAs). PPA prices vary depending on contract length and duration (peak or off-peak). These make up a minor percentage of total generation, and the rates are about comparable to Hawaiian Electric’s claimed cost for oil-generated electricity. Other new, lower-cost PPAs should be available soon, while some older, higher-cost PPAs are about to expire.
HawaiianElectric is allowed by the Public Utilities Commission (PUC) to adjust prices in response to changes in oil prices, however there is a lag between changes in oil prices and changes in power costs. Every three years, the PUC conducts a rate case to more completely assess expenditures. Rate cases are conducted on a rotating basis by the three utilities, HECO, MECO, and HELCO. Some details are kept confidential, and determining what is available from publicly available records might be difficult.
The average Brent crude oil price over the preceding four months has historically been a reliable predictor of power prices in the current month (figure 2). Brent crude oil prices, according to our methodology, forecasted Hawai’i’s average electricity price much better than the prices supposedly paid by HECO.
Prices, on the other hand, have recently risen from their historical lows. A noticeable breach developed statistically about November 2008, during the height of the financial crisis and the worsening recession. Months since the break are shown in blue, and the historical relationship is shown in black.
We may estimate the fixed-cost component of price at about 10.7 cents per kWh based on the pre-November 2008 link between power and crude oil prices, which roughly corresponds to the value stated by Hawaiian Electric. This margin accounts for the costs of grid maintenance, infrastructure, billing, and Hawaiian Electric’s profits. On the mainland, this fixed cost generally corresponds to the average retail price of power. The smaller scale and geographical constraints of an island economy contribute to high fixed costs. It’s difficult to say whether or how much competition may lower these expenses.
After accounting for expected variable (fuel) costs, we can compute the percentage of the electricity price left over by adding 10.7 to the difference between each month’s price and the fitted line in figure 2. This will be referred to as the “expected price per kWh toward fixed costs” in Figure 3. Prices have drifted north from the historical connection since November 2008, implying that the fixed cost portion of pricing has climbed to roughly 15 cents per kWh, or around $83 per home per month.
Fixed expenses have risen as a result of a variety of variables. Hawaiian Electric was given permission to hike Oahu prices by 5.7 percent in 2009 as part of a rate case to fund new infrastructure and meet rate-of-return standards. In 2010, a $1 per barrel tax was enacted to fund renewable energy and food security projects. However, this fee is merely 0.2 cents per kWh. Since 2011, the disparity between Hawaiian Electric’s oil expenses and global Brent crude oil prices has widened somewhat (figure 4).
Finally, the revenue decoupling rule authorizes HECO to raise prices every year between rate cases to make up for revenue lost owing to energy efficiency and distributed generation (i.e., newsolar installations).
As I mentioned in my previous essay, the goal of decoupling is to align HECO’s interests with those of competitive solar providers. HECO can benefit from this policy between rate cases since revenues are constant and generation costs are reducing. Revenue decoupling currently adds 1.3 cents per kWh, but according to a leaked document from the Public Utilities Commission, this will soon climb to 2.2 cents per kWh.
In the future, we might hope for lower electricity prices.
The cost of producing power from wind and solar is less than that of oil, and it is rapidly reducing.
Natural gas, a less expensive, cleaner, and less expensive fuel, might be used to replace oil.
Renewables will be limited by the intermittent nature of renewables and our outmoded grid, and quickly rising fixed costs may restrict how much households and businesses benefit from decreased generating costs in the long run.
An overriding concern is that grid fixed costs are approaching levels where battery backup to “unplugged” distributed systems could become a viable grid substitute. With the cost of PV solar and batteries plummeting while fixed expenses rise, we may be on the verge of creating an unavoidable “death spiral” that renders the entire grid obsolete. In a subsequent post, we’ll go over this topic in greater depth.
We’ll go over the costs and benefits of solar, net metering, the rapid expansion of solar installations, and how this growth may put a strain on the current grid infrastructure in the next post in this series.
Why is my electric bill in Hawaii so high?
Weather. High humidity, vog, and Kona (southerly) winds can result in higher electricity consumption, whether from using an air conditioner or turning on more fans.
What is the cost of a sewer bill in Hawaii?
For single family houses, base costs will increase to $71.81 (a $3.42 increase) and water volume charges will climb to $4.29 (a $0.21 increase) per 1,000 gallons. The additional costs will help pay for environmental protection agency-mandated maintenance and enhancements.
Is electricity in Hawaii expensive?
Due to the high cost of imported oil needed to power many of the islands’ generators, electricity prices in Hawaii are often higher than on the mainland. The most significant factor is the change in the cost of gasoline, which accounts for nearly half of a monthly payment.
Because we don’t have any local utility providers from which to draw power in the event of a breakdown, our remote geographic position also contributes to the higher cost of electricity. As a result, we need reserve generating capacity and different distribution routes to ensure system resilience.
In comparison to 2020, electricity costs in Oahu, Hawaii Island, Maui, Molokai, and Lanai increased in 2021.
Because electricity tariffs are determined by the cost of delivering service, they differ by customer type. For each of our divisions, the graphs below show the average price paid per kilowatt-hour (kWh) in 2021 by each type of client (rate schedule).
What is the minimum amount of money required to live comfortably in Hawaii?
As most of us are aware, an equal wage might go a long way in one location but not in another. You can live comfortably if you make at least $75,000 each year. At this salary level, you are said to have achieved a stage where you don’t require any additional funds to live comfortably. However, the $75,000 must be adjusted in each state to account for changes in living costs.
Minnesota, Pennsylvania, Colorado, Nevada, Florida, and Wisconsin, on the other hand, are right on the money. That is, even after correcting for inflation, these states will produce a monetary amount that is similar to the national benchmark.
We just published a list of the most affordable states in the United States. Let’s look at the most expensive states now. Do you reside in a high-cost state? How much does it cost to live, dine, and have fun in these more expensive areas? We’ll also address the question: how much of an annual salary do you need in each of these states to live comfortably at the $75K level?
Connecticut is number seven.
Observe how every index category in Connecticut is higher than the benchmark index of 100, with food, healthcare, and other costs such as entertainment and apparel being notably high. The Northeastern state’s median property value is $240,000, and properties typically sell for roughly $275,000 (or $162 per square foot). If you rent, you’re looking at a monthly housing bill of roughly $1,500, according to the Zillow median.
In Hartford, the typical cost of utilities in a modest apartment is roughly $210, while going out for supper (at a mid-range restaurant) and a movie with a buddy is around $75.
If $75,000 is the optimal wage, you’d need to earn about $94,000 in a state closer to the benchmark, such as Florida, to obtain the same level of life.
California is number six.
In the sunny state, the median property value is $429,000, and homes typically sell for $425,000 ($256 per square foot). As a renter, you’ll face a typical rent of over $1,900, and housing and rent prices in some California areas, such as San Francisco, are among the highest in the country.
Dinner and a movie for you and a guest may easily set you back $100. Basic foods such as milk, bread, and eggs will set you back a significant amount of money. A typical loaf of bread in San Francisco can cost as much as $4.
Utilities, on the other hand, are not as expensive as they are in some of the other costly states. In San Francisco, you might be able to keep your lights and water on for less than $100 per month in a tiny apartment. Overall, living in California will cost you money. In California these days, you’d need an income of roughly $95,000 to achieve that $75K level of life.
5. The state of New Jersey
In general, New Jersey’s living costs are equivalent to those in California. To be entirely comfortable, you’d need the same $95K wage. However, Jersey property prices are lower than those in California, with a typical value of $278,600. If you’re looking to buy a house in Northern California, the median list price is slightly under $300,000, or $174 per square foot.
The median monthly rent is $1,800, which is extremely pricey. If you rent in Princeton, you might have to pay $275 or more per month for utilities in a small apartment. In Princeton, you may expect to pay roughly $80 to $85 for supper and a movie.
4. The state of Alaska
New York and California are usually the first states that come to mind when we think about pricey states. We frequently overlook Alaska’s high cost of living. In Anchorage, Internet (6 Mbps, Unlimited Data, Cable/ADSL) costs roughly $70 (or more), which is significantly pricier than in many other cities.
Homes in the vast state have a typical list price of $252,000. Juneau (where the typical home price is roughly $315,000) is substantially more expensive than Kenai (where the median home price is around $200,000). Food is very expensive, and if you go out to supper and a movie with a companion, you should expect to spend around $85 or more.
3. New York City
With a typical home price of $525,000 ($507 per square foot), New York is noted for its higher cost of living. According to Zillow, the real estate market in the Big Apple is booming, with statewide housing values up 8.5 percent in the last year. As a renter, you might easily spend upwards of $4,000 on a modest flat in New York City, with monthly utilities costing around $175.
If you and a guest decide to go out to dinner and the theater one night, you might easily spend over $400. If you want to go out and have a drink in a downtown bar, you can end up paying $13 for a cocktail. However, if you want to drink in a neighborhood pub, a pint should cost roughly $7. Overall, you’d need roughly $100,000 per year to live comfortably at the $75K level.
2. The capital of the United States, Washington, D.C.
While some costs, such as healthcare and utilities, are cheaper than the national average, property prices in DC are exorbitant. “The median price of homes now listed in Washington is $449,000,” according to Zillow, “while the typical price of homes that sold is $527,150.” The housing market in the nation’s capital is booming, with home values rising by 10.4% in the last year.
If you’re thinking about renting, the typical rent price is just under $2,000, which is more than double the national average. In a tiny apartment, utilities should cost roughly $160 per month, which is rather affordable. Dinner and a movie for you and a guest, on the other hand, may cost more perhaps over $100. You’d need an annual salary of about $105,000 to survive in DC at that $75,000 level.
1. The Hawaiian Islands
Paradise is not cheap. To live comfortably in Hawaii these days, you’d need a salary of at least $122,000. In Honolulu, dinner and a movie will set you back roughly $75, which is a bit excessive. Bread and eggs, on average, cost over $4 each, so your grocery expenditure may be higher in this category as well.
In Hawaii, the median property value is $518,800, with a median list price of $525,000 ($420 per square foot). If you want to rent, you can expect to pay little under $2,000 per month if you pay the median amount. A tiny apartment in Honolulu will cost you roughly $285 per month to keep the utilities running.
