(The Center Square) – Tennessee’s retail energy price is 19th in the nation and cheaper than half of its neighboring states, according to an analysis from the American Legislative Exchange Council.
The Energy Affordability 2026 report shows the Volunteer State’s average price in cents is 10.60 per kilowatt hour, higher than Arkansas, which ranked 9th with a cost of 9.59. Kentucky also had a lower cost at 10.07Four of Tennessee’s neighbors have higher costs. Alabama had the highest among the three states at 11.90, followed by North Carolina at 11.65, Georgia at 11.40 and Mississippi at 10.93, according to the report.The report also showed that the state’s top energy source is nuclear at 42%, followed by coal at 23%, natural gas at 22%, and hydroelectric at 12%. Tennessee gets 1% of its energy from solar, the report said.”As a net importer, the state supplements in-state generation with regional purchases to meet demand while maintaining relatively moderate retail prices,” the report said.The analysis used 2024 data, the most recent available.Tennessee ranks 5th in fuel costs, based on 2025 gas prices in other states. Regular gasoline was $2.71 per gallon. Diesel fuel costs were $3.35 per gallon, the 9th-lowest among the states.The report shows North Dakota and Louisiana had the cheapest energy costs. California and Hawaii had the highest.
