Electricity costs are going up in the U.S. — and the Trump administration’s attempts to choke off clean energy development are only going to make matters worse.
The average price of electricity for residential consumers is set to hit 17 cents per kilowatt-hour this year and could climb to 18 cents per kilowatt-hour in 2026, per a new report from the U.S. Energy Information Administration.
Electricity prices are rising at more than twice the rate of inflation. Just five years ago, in 2020, average U.S. power prices were only 13.15 cents per kilowatt-hour — 23% lower than they are today.
The difference may seem small, but even one additional cent would tack on roughly $108 to the average U.S. home’s expenses each year. It’s taking a toll on people’s wallets: A survey conducted this spring found that three in four Americans said they’re worried about rising utility bills.
Numerous reports and studies reveal that the core drivers of rising prices include an aging distribution grid that requires expensive repairs, and damage to the system from the wildfires and storms exacerbated by climate change. Then there’s the volatile price of natural gas, which produces about 40% of U.S. electricity. Skyrocketing demand for power is also increasingly a factor, as people electrify their homes, businesses, and cars, and in particular as data-center developers snap up as much energy as they can to support their AI ambitions.
In January, President Donald Trump took office promising a great many things — including to make energy more affordable. But since then, household electric bills have risen another 10%, and the policies he’s enacted are set to exacerbate the problems at hand.
If renewable energy construction slows at the same time data centers and consumers require more power, it will create a clear dynamic of too much demand and not enough supply. The result will be even higher energy bills for Americans, Rhodium and others forecast — the exact opposite of Trump’s grand vow to rein in costs.
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