Last updated: June 2026
Bitcoin Mining Electricity Costs: 2026 Rate Benchmarks
Electricity is the largest controllable cost in bitcoin mining. These benchmarks compare rates across the main mining segments in 2026 — residential, competitive professional hosting, and industrial large-scale — and where Fathom Labs' $0.07/kWh all-in rate at our Southeast Texas facility fits in.
This page is a cost comparison, not a profit projection. Mining revenue depends on BTC price and network difficulty, which fluctuate independently of electricity rates.
What Miners Actually Pay Per kWh in 2026
| Segment | Typical rate | Notes |
|---|---|---|
| US residential electricity | ~$0.12–$0.20/kWh * | EIA state-level averages vary widely |
| Competitive professional hosting (industry range) | ~$0.065–$0.08/kWh * | ERCOT Texas, competitive US markets, all-in |
| Fathom Labs: Southeast Texas | $0.07/kWh all-in | No cooling surcharge, no management fee |
| Industrial / large-scale (direct utility) | ~$0.04–$0.06/kWh * | Direct utility or wholesale contracts, hyperscale operators |
* Rates marked with an asterisk should be verified against a live source before citing. Rates vary by provider, contract size, and terms. US residential average per EIA data; industry and industrial rates based on publicly reported 2026 pricing and competitive intelligence.
Why Electricity Cost Is the #1 Profitability Lever
In bitcoin mining, most cost variables are outside your control: BTC price, network difficulty, pool fees, and hardware depreciation are all external. Electricity rate is the single largest expense you can directly influence.
The calculation below compares monthly electricity costs for a single Whatsminer M70S (258 TH/s, 13.5 J/TH, approximately 3,483 W) at a $0.15/kWh residential rate versus the $0.07/kWh all-in rate at Fathom Labs:
Power draw: 258 TH/s × 13.5 J/TH = 3,483 W (~3.5 kW)
Monthly electricity, $0.15/kWh: ~$378
Monthly electricity, $0.07/kWh: ~$176
Monthly cost difference: ~$202 per miner
Pure electricity cost calculation only — not revenue or profit. Mining revenue depends on BTC price and network difficulty, which change independently. Monthly electricity = 3.5 kW × 720 h × rate.
Model revenue and costs at different electricity rates with live BTC prices using our bitcoin mining profitability calculator.
What "All-In" Means vs. Raw kWh Rate
When comparing hosting providers, the distinction between an all-in rate and a raw electricity rate matters: a low raw rate with add-ons can end up more expensive than a higher all-in rate.
Typically covered by a genuine all-in rate:
- +Electricity (direct power to the machine)
- +Cooling infrastructure overhead (PUE)
- +Rack space and power distribution
- +Network connectivity
- +24/7 NOC monitoring and troubleshooting
Not included in any hosting rate — confirm separately:
- -Pool fees (typically 1–2% of mining revenue, charged by your mining pool)
- -Demand charges (some utilities bill for peak power draw; may be passed through by the facility)
- -Transmission and delivery (some providers quote generation cost separately from delivery charges)
The $0.07/kWh rate at Fathom Labs genuinely covers electricity, cooling, racking, network, and monitoring with no separate line items. Pool fees (charged by your chosen pool) and hardware purchase are excluded, as with any hosting arrangement.
Regional Rate Differences: US and ERCOT Context
Electricity rates vary significantly across US states. Hawaii and California residential rates frequently exceed $0.25/kWh, making home mining impractical. Some lower-rate states may fall below $0.10/kWh, but still typically exceed the best professional hosting rates.
Texas stands out because of ERCOT. The ERCOT (Electric Reliability Council of Texas) grid is largely deregulated and independent from the Eastern and Western US interconnects. This structure allows large industrial power consumers to negotiate rates directly with generators and retailers. Texas' substantial wind and solar capacity further pushes down wholesale electricity prices, making it one of the most rate-competitive bitcoin mining markets in the US.
Fathom Labs' Southeast Texas facility benefits from these rates through direct ERCOT grid access. To learn more or get a hosted mining quote, see our Southeast Texas facility page or contact us for a hosted quote.
Home vs. Hosted Electricity Math
Monthly electricity cost for a single Whatsminer M70S (~3.5 kW) running 24/7 across rate scenarios:
| Scenario | Rate | Monthly elec. (3.5 kW) |
|---|---|---|
| US home (low-rate state) | $0.12/kWh * | ~$302 |
| US home (national average) | $0.16/kWh * | ~$403 |
| US home (high-rate state) | $0.20/kWh * | ~$504 |
| Fathom Labs hosted | $0.07/kWh all-in | ~$176 |
Calculated as 3.5 kW × 720 h × rate. * Home rates marked with asterisk should be verified against EIA state-level data. Electricity cost estimates only — excludes cooling overhead, insurance, and other home-mining costs.
For a full home vs. hosted breakdown including hidden home-mining expenses like cooling, insurance, and maintenance, see Home vs. Hosted Cost. For the full hosting costs topic hub, see Bitcoin Mining Hosting Costs.
Frequently Asked Questions
How much does electricity cost to mine Bitcoin per kWh?
Electricity costs for bitcoin mining vary significantly by segment. In 2026, US residential electricity averaged approximately $0.12 to $0.20/kWh, varying by state. Competitive professional hosting facilities charged approximately $0.065 to $0.08/kWh all-in. Large-scale industrial miners with direct utility contracts can reach approximately $0.04 to $0.06/kWh. Fathom Labs charges $0.07/kWh all-in at its Southeast Texas facility, near the competitive low end of the professional hosting market.
What is a good electricity rate for Bitcoin mining?
A rate below $0.10/kWh makes bitcoin mining viable in most market conditions. Below $0.08/kWh is competitive among professional hosting operations. Below $0.07/kWh is near the efficient frontier for the US hosted mining market. At $0.15/kWh (a common residential rate), a Whatsminer M70S (258 TH/s, 13.5 J/TH, approximately 3.5 kW) costs approximately $378 per month in electricity. At $0.07/kWh, the same machine costs approximately $176 per month — a $202 per month difference per miner.
What does 'all-in' electricity rate mean for mining hosting?
An all-in rate means the quoted dollar-per-kWh figure covers all facility operating costs: electricity, cooling infrastructure overhead, racking, network connectivity, and 24/7 monitoring. Some providers quote a lower base electricity rate and bill cooling, management, and network fees separately. Note that pool fees (typically 1 to 2 percent of mining revenue) are charged by your mining pool, not your hosting provider, and are not included in any hosting rate. Always verify which line items are included before comparing providers.
Is it cheaper to mine Bitcoin at home or with a hosting provider?
For most US miners, professional hosting is cheaper on a per-kWh basis. US residential electricity averages $0.13 to $0.16/kWh (some states reach $0.20/kWh), versus $0.065 to $0.08/kWh all-in at competitive professional hosting facilities. Beyond electricity, home mining incurs additional costs that hosted mining eliminates: cooling overhead, electrical infrastructure upgrades such as dedicated circuits and possible panel upgrades, hardware insurance, and the ongoing time cost of monitoring and maintenance.
Why is electricity in Texas cheap for Bitcoin mining?
Texas operates the ERCOT (Electric Reliability Council of Texas) grid, which is largely deregulated and separate from the Eastern and Western US interconnects. This structure allows large industrial power consumers to negotiate competitive rates directly with generators and retailers. Texas also has substantial wind and solar generation capacity that contributes to wholesale price competitiveness. Industrial sites in Southeast Texas, such as Fathom Labs' facility, can access ERCOT grid power at rates among the most competitive in the US for bitcoin mining.
Mine in Texas at $0.07/kWh All-In
Learn about our Southeast Texas facility, or contact us for a hosted mining quote.