
Electricity Rates in Salem, OR
Average electricity cost, utility comparison, and solar savings potential for Salem homeowners.
Salem Electricity Cost Overview
The average residential electricity rate in Salem, OR is $0.12 per kWh, which is 25% below the national average of $0.16/kWh. Homeowners in Salem pay an average of $118 per month for electricity, based on typical usage of 983 kWh per month.
Electricity rates in Salem are determined by the local utility providers that serve the area. Rates can vary depending on your specific utility, usage level, and time of use. Since Oregon has a deregulated electricity market, Salem residents can shop for competitive rates from alternative suppliers.
Electric Utilities Serving Salem
| Utility Company | Avg Rate ($/kWh) | Est. Monthly Bill |
|---|---|---|
| Portland General Electric (PGE) | $0.12 | $118 |
| Pacific Power | $0.11 | $108 |
| Eugene Water & Electric Board | $0.10 | $98 |
Compare & Shop Electricity Rates in Salem
Oregon has a deregulated electricity market, which means Salem residents can choose their electricity supplier. You're not limited to the default utility rate — you can shop for the cheapest electric rates from competing suppliers while your local utility still handles delivery.
How to Find the Lowest Rates in Salem
- Compare suppliers: Check your state's Public Utilities Commission website for a list of approved electricity suppliers serving Salem.
- Fixed vs. variable rates: Fixed-rate plans lock in your price per kWh for the contract term. Variable rates may start lower but can increase with market conditions.
- Watch for fees: Some plans include early termination fees or monthly service charges that offset a low per-kWh rate.
- Consider solar: Instead of switching suppliers every year, solar panels let you generate your own electricity at a fixed cost for 25+ years — often cheaper than any supplier rate.
The current average rate in Salem is $0.12/kWh. By comparing suppliers or adding solar, many homeowners reduce their monthly bill from $118 to under $35 per month.
How Solar Compares to Salem Electricity Rates
Without Solar
- Monthly bill: $118
- Annual cost: $1,416
- 25-year cost: $35,400
- Rate trend: Rising 2-5% annually
With Solar
- Monthly savings: $85
- Annual savings: $1,020
- 25-year savings: $30,000
- Rate: Locked in for 25+ years

Electricity Rates FAQ - Salem, OR
The average residential electricity rate in Salem is $0.12 per kilowatt-hour (kWh), which is 25% below the national average of $0.16/kWh. The average monthly electric bill for Salem homeowners is approximately $118.
With solar panels, Salem homeowners can reduce their electricity costs by approximately 72%, saving around $85 per month or $30,000 over 25 years. The 30% federal tax credit further reduces the upfront cost of going solar.
The major electric utilities serving the Salem area include Portland General Electric (PGE), Pacific Power, Eugene Water & Electric Board. Rates vary between providers, so your exact cost depends on your utility and usage level.
Yes, electricity rates in Salem and across Oregon have been increasing, following national trends of 2-5% annual increases. This makes solar panels an increasingly attractive option since they lock in your energy costs for 25+ years.
Yes! Oregon has a deregulated electricity market, so Salem residents can compare and switch electricity suppliers to find the lowest rates. Your local utility (Portland General Electric (PGE)) still delivers power, but you choose who supplies it. Compare fixed-rate and variable-rate plans, and consider solar panels for the lowest long-term electricity cost.
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