Florida's energy costs stay low despite heavy natural gas reliance
Florida's energy costs remain among the lowest in the US, despite relying heavily on natural gas. A recent report ranked the state 34th for energy affordability, an improvement from last year's position. Meanwhile, global tensions and domestic policies continue to shape its energy landscape. Electricity in Florida currently costs an average of 16 cents per kilowatt-hour, around 22% cheaper than the national average. Prices have held steady over the past five years, with forecasts suggesting a modest 2% annual rise. The state's energy mix is dominated by natural gas (77%), followed by nuclear (11%) and solar (7%).
The American Legislative Exchange Council's 2026 report highlights Florida's progress, moving it up three places from 37th in affordability last year. However, the state still trails leaders like North Dakota and Louisiana. Florida imports more electricity than it produces and has recorded 14 grid incidents in the past year.
While Florida lacks a Renewable Portfolio Standard or cap-and-trade system, it maintains a net metering policy for solar users. Global events, such as the US-Israel strikes on Iran in February 2026, have also influenced fuel prices and energy infrastructure worldwide. Florida's energy sector benefits from stable pricing and a diverse generation mix. The state's affordability ranking shows gradual improvement, though it remains a net electricity importer. Future price trends will depend on both domestic policies and international developments.
