What’s a Kilowatt-Hour? (And Why It Matters to Your Electric Bill)

Ever stared at your electricity bill and wondered what a “kWh” even means? You're not alone. Understanding kilowatt-hours (kWh) is key to understanding what you're actually being charged for—and how to save.

What Is a Kilowatt-Hour?

A kilowatt-hour (kWh) is a measure of energy. It’s how electric companies track how much electricity you use.

1 kilowatt (kW) = 1,000 watts. So, if you use 1,000 watts for 1 hour, that’s 1 kWh.

Example: Running a 100-watt light bulb for 10 hours = 1 kWh.

Why Does It Matter?

Your utility provider charges you based on how many kWh you consume each billing cycle. The more devices you use—and the longer you use them—the more kWh you rack up.

• Typical rate: $0.10 to $0.30 per kWh in the U.S.
• Monthly usage for a home: 700–1,500+ kWh

How to Reduce kWh Usage

To lower your bill, you need to use fewer kilowatt-hours. Some quick ideas:

• Switch to LED lighting
• Unplug unused electronics
• Use energy-efficient appliances
• Adjust thermostat settings

Bonus: Estimate Your kWh Use Easily

Try our free WattWise Energy Estimator to get a quick estimate of how much electricity you're using—and where to cut back.

Final Thoughts

Once you understand what a kilowatt-hour really means, your electricity bill starts making a lot more sense. The next step? Take control by monitoring your usage and finding ways to bring those numbers down.