Many people are experiencing higher electricity bills this summer. Power costs have been rising nationwide, almost in parallel with inflation.
The U.S. Energy Information Administration predicted in June that household electricity bills would experience a “slight increase” between June and September. Government data indicates current electricity costs are 5.5% higher than last year, and natural gas prices have surged by 13.8%. While almost three-quarters of Americans are worried about elevated electricity and gas expenses, approximately 60 utility companies are either implementing or seeking to implement electric bill hikes totaling $38.3 billion and gas bill increases of $3.5 billion. These changes impact 56.7 million electricity customers and 26 million natural gas customers, according to research from the released in mid-June.
Despite the Trump Administration’s promise to reduce electricity prices by half, President Trump has attributed cost increases to clean energy. On August 20, Trump stated on Truth Social, “Any State that has built and relied on WINDMILLS and SOLAR for power are seeing RECORD BREAKING INCREASES IN ELECTRICITY AND ENERGY COSTS. We will not approve wind or farmer destroying Solar.” However, there is no correlation between average state energy prices and the proportion of energy supplied by renewable sources. A recent analysis by revealed that states with greater renewable energy adoption have experienced more modest price increases or even declines compared to the average.
Why are Power Costs So Elevated?
The significant rise in electricity prices stems from a combination of factors straining energy supplies. Both natural gas and electricity costs have recently been unstable. The Russia-Ukraine war, severe weather conditions, and heightened demand are some contributors that pushed natural gas prices higher in March, while electricity prices became uncertain after Trump’s tariff announcements, given that several U.S. states import energy from Canada.
Furthermore, demand has reached unprecedented levels. Shannon Baker-Branstetter, senior director of domestic climate policy at the Center for American Progress, explains, “Many of the rate increases and fuel costs passed on [to customers’ monthly bills] are currently due to the substantial demand from AI data centers.” Reports suggest that data centers will necessitate considerable upgrades to the electrical grid, potentially burdening residents and small businesses unless legislators compel tech companies to cover the expenses. “The Trump Administration is exacerbating this issue by impeding renewable energy projects, including wind and solar, which would have introduced more affordable energy and helped satisfy demand.”
The Trump Administration has been retracting investments in clean energy, which are considerably more than fossil fuels. The administration’s “Big Beautiful Bill,” enacted on July 4, could raise household energy expenses by $170 to $280 annually by 2035, based on two estimates from, a non-partisan energy and climate think tank and Princeton University’s. Dawone Robinson, managing director in the climate and energy department at the Natural Resources Defense Council, states, “The bill eliminates numerous tax credits and aims to stifle the expansion of clean energy at a time when America urgently requires new clean energy sources.”
Climate change is set to intensify energy demands, as individuals increasingly cool their homes during periods of intense heat and severe weather events compromise the electric grid. Baker-Branstetter notes, “Climate change is boosting the need for cooling and elevating the cost of maintaining a dependable electric grid.”
How to Reduce Your Electricity Bill?
Experts suggest that the initial measure is to scrutinize your energy usage. Robinson asserts, “The most economical energy is the energy we don’t consume.” Ensuring proper home insulation and adjusting your thermostat to avoid heating or cooling an empty house are examples of steps towards greater efficiency.
Consider weatherization upgrades, such as repairing drafty doors and windows to prevent heat loss, and installing solar panels and heat pumps. Baker-Branstetter states, “If individuals can implement rooftop solar or participate in a local community solar program, it can also provide protection against price increases, as solar energy is typically much more affordable.” can assist you with energy-efficient home renovations and solar panel installation, but ensure you utilize them before they conclude this year.
Should you face difficulty paying your bill, reach out to your utility provider to inquire about available payment plans. State and local authorities frequently provide assistance programs to prevent service disconnections, and many states prohibit shutoffs, particularly during hazardous weather, according to Baker-Branstetter. Additionally, determine if you are eligible for the Low Income Home Energy Assistance Program (LIHEAP), a federally funded and locally managed initiative designed to help low-income households with their home energy expenses.
For the long term, experts advocate that varied and sustainable energy sources hold the key to addressing our expanding energy requirements. Robinson asserts, “To fulfill our energy needs responsibly, in an affordable, efficient, and dependable manner, we must intensify our focus on clean energy solutions that will generate employment and contribute to resolving the climate crisis.”