Electricity bills are rising across the U.S., and many households are feeling the strain – especially during the summer and winter months.

So, what’s driving a rise in energy costs? From an aging grid infrastructure to increased demand, the trend is clear: prices are going up. 

How Much Are Americans Paying for Electricity in 2025?

This summer (June to September), the average monthly residential energy bill is estimated to be around $178 per month. This represents an average increase of $5 nationwide compared to last summer. In some states, residents might see an increase of $10 or more on their summer energy bills.

Here’s a snapshot of average electricity rates and monthly bills across several states. These estimates are based on typical household usage per month and the state’s average electricity rate.

*Electricity Rates by State (July 2025)

According to the U.S. Energy Information Administration (EIA), the average electricity rate for homes in the U.S. has gone up by about 13% from 2022 to 2025, and they’re projected to continue rising in the coming years.

Why Energy Prices Are Still Rising ⚠️

Several factors are contributing to an overall rise in energy costs across the country and the world:

Increased Demand🔌

The swift development of data centers, electric vehicles (EVs), and digital infrastructure is putting pressure on the grid. In fact, experts project that worldwide data center electricity demand will more than double by 2030.

Our digital infrastructure includes the technology and services that support our daily activities, such as online shopping, streaming movies, AI search tools, and our ecosystem of smart devices like speakers, voice assistants, smart appliances, headphones, phones, tablets, and TVs. Data centers, which are buildings that store and manage large amounts of data, work tirelessly behind the scenes to keep this infrastructure running smoothly.

Aging Infrastructure 🏗️

As of 2023, around 70% of lines and transformers on the grid were over 25 years old and much of the grid is nearing the end of its life cycle. Maintenance and system upgrades—such as new transmission lines and energy storage systems—are expensive, and companies often pass these costs on to customers.

Energy Prices🔥

The cost of natural gas, a primary fuel for electricity generation, has been unstable, causing price swings for both utilities and ratepayers. In 2024, global natural gas demand grew by 2.8%. This growth rate was well above the average compared to the 2% average growth rate between 2010 and 2020. In early 2025, the World Bank’s natural gas price index again showed significant fluctuations, with U.S. prices dropping by 18% in April, and 8% in May.

While price drops can provide short-term relief, the overall instability is generally seen as negative because it creates uncertainty and can lead to unforeseen price spikes. Geopolitical tensions have also led to unsteady gas prices in recent years.  

Climate Change🌡️

Extreme weather events, such as heatwaves and cold snaps, lead to higher energy consumption for cooling and heating. This increased demand, particularly during surge pricing hours when electricity is more expensive, drives up electricity bills. 

Climate change is making extreme weather patterns and disasters a new normal, and the electricity grid may not be able to properly meet the unpredictable circumstances. A vulnerable electrical grid means unideal and potentially dangerous black-outs. It also means time-consuming repairs. 

So, Is There Any Way I Can Reduce My Electricity Bill?

As the demand for electricity rises, solar power has become the fastest-growing source of new electricity in the United States. 

Solar electricity generation is projected to grow by 75% between 2023 and 2025, jumping from 163 billion kWhs to 286 billion kWhs. While there can be wait times up to 7 years to order and install a gas turbine (because of supply chain delays and rising costs), solar farms can start producing electricity in less than a year. 

While many people envision rooftop panels when they think of solar, community solar is another easy way to access the benefits of clean energy, including financial savings. 

Community solar farm subscribers receive credits on their monthly electricity bill for a share of the farm’s solar generation and pay for this power at a 5-25% discount off normal energy consumption. Essentially, it's a way to buy cheaper power. You can subscribe to a local solar farm without any upfront investments.

Rising electric bills are frustrating and can be a financial burden for many households, but you’re not powerless. With solutions like community solar, consumers, like you, can take control of their energy costs and support a cleaner, more sustainable future.