Energy Bills May Be Spiking, but There's Some Good News

Electricity rates are up 30%-plus since 2020, but some say our 'energy wallets' may shrink by 2050
Posted Oct 12, 2025 4:36 PM CDT
High Energy Costs More Complicated Than Trump Suggests
Stock photo.   (Getty Images/Visions)

Americans are facing a sharp jump in electricity bills, with rates up more than 30%, on average, since 2020, far outpacing inflation. President Trump recognized this problem before taking office, promising to slash energy prices in half, but that hasn't happened. Indeed, bills are only likely to rise higher, Vox reports. The reasons for these surging costs are complex: rising demand, including from the use of artificial intelligence; unpredictable prices for fuel; inflation; tariffs; extreme weather events; and delays in grid upgrades have all piled on. While this spike is squeezing household budgets and affecting everything from manufacturing to transportation, experts say it's not quite a full-blown crisis—at least not for everyone.

The pain is real, especially for low- and middle-income families, who spend a larger chunk of their income on energy. Power shut-offs for nonpayment are increasing, and some 80 million Americans now find themselves forced to choose between paying utility bills or covering essentials like rent and health care. Utilities, meanwhile, are asking regulators to hike rates even further. There is, however, a bigger picture: Despite recent jumps, total household spending on energy (including gas and electricity) has stayed fairly steady for decades when adjusted for inflation. And as more homes switch to electric vehicles and efficient appliances, research suggests the average "energy wallet" could actually shrink by 36% by 2050.

Though Trump has blamed renewable energy for rising prices, "wind and solar offer some of the cheapest and fastest ways to provide electric power," per the AP. More than 90% of new energy capacity in the US in 2024 was clean energy, according to the American Clean Power Association. And while energy prices are climbing in states with the lowest share of clean energy production, they're falling in states with the highest share, according to the US Energy Information Administration. However, the nonpartisan think tank Energy Innovation found that by phasing out clean energy tax credits and impeding the development of domestic electricity generation capacity, the 2025 GOP tax law will raise the average family's energy bill by $130 per year by 2030.

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