Most & Least Energy-Efficient States

Energy is expensive. In fact, it’s one of the biggest household expenses for American consumers. The average U.S. family spends at least $2,000 per year on utilities, according to the U.S. Department of Energy, with heating and cooling of spaces alone accounting for more than half the bill. In 2021, the average consumer spent another $2,148 on motor fuel and oil.

The Department of Energy estimates that adopting energy-efficient measures in the home could reduce a family’s utility costs by as much as 25 percent. It pays to conserve, especially during a time of increasingly warmer temperatures. As for transportation, the agency found that a more fuel-efficient vehicle could save the average driver about $970 per year.

We’re already making some progress with increasing energy efficiency. The U.S. Energy Information Administration expects 22% of electricity generation in 2022 will come from renewable sources. That’s up 2% since last year and up 12% since 2010.

In order to gauge the impact of doing more with less energy, WalletHub measured the efficiency of auto- and home-energy consumption in 48 U.S. states. Due to data limitations, Alaska and Hawaii were excluded from our analysis.

Main Findings

Most & Least Energy-Efficient States

Notes: *No. 1 = Most Energy-Efficient
**Due to data limitations, Alaska and Hawaii were excluded from our analysis.
With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

Ask the Experts

Environmentally conscious practices can help prevent costly damage to the planet — and one’s wallet. To help consumers and governments reduce their consumption and maximize their savings, we asked a panel of experts to weigh in. Click on the experts’ profiles to read their bios and responses to the following key questions:

1. What energy-efficient products for the home offer the best return on investment?
2. What is the biggest mistake consumers make when trying to make their homes more energy-efficient?
3. What are some tips for consumers to become more energy efficient, especially if they work from home?
4. Should the government continue to incentivize consumers and businesses to invest in energy-efficient projects?
5. What tips can you provide for building an energy-efficient home on a budget?

Ask the Experts

Dan Ervin
Ph. D. – Professor of Finance, Perdue School of Business – Salisbury University
Read More

Bryan Bollinger
Academic Director of Doctoral Education; Associate Professor of Marketing & George A. Kellner Faculty Fellow – New York University Stern School of Business
Read More

Heather E. Payne
J.D. – Associate Professor, School of Law – Seton Hall University
Read More

Auriane Koster
Ph.D. – Senior Sustainability Manager at Fusebox (powered by Pierce Energy Planning)
Read More

Mahelet Fikru
Associate Professor of Economics – Missouri University of Science and Technology
Read More

Methodology

In order to determine which states are doing more with less energy, WalletHub compared 48 states across two key dimensions, “Home Energy Efficiency” and “Auto Energy Efficiency.” We obtained the former by calculating the ratio of total residential energy consumption to annual degree days. For the latter, we divided the annual vehicle miles driven by gallons of gasoline consumed to determine vehicle-fuel efficiency and measured annual vehicle miles driven per capita to determine transportation efficiency.

Each dimension was weighted proportionally to reflect national consumption patterns and graded on a 100-point scale, with a score of 100 representing optimal energy efficiency.

Finally, we calculated the total score for each state and used the resulting scores to rank-order our sample. Due to data limitations, we were unable to include Alaska and Hawaii in our analysis.

Home Energy Efficiency – Total Points: 50

• Home Energy Efficiency = Total Residential Energy Consumption per Capita / Annual Degree Days

Auto Energy Efficiency – Total Points: 50

• Vehicle-Fuel Efficiency = Annual Vehicle Miles Driven / Gallons of Gasoline Consumed
• Transportation Efficiency = Annual Vehicle Miles Driven per Capita

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, National Climatic Data Center, Energy Information Administration, U.S. Department of Transportation - Federal Highway Administration and National Highway Traffic Safety Administration.

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