Electricity costs have been steadily rising over the past few years, affecting households across the country. If you’ve noticed your monthly bill creeping up, you’re not alone—this has been a widespread trend since 2020.
On average, electricity prices have increased by about 6 to 7 percent annually since 2020, outpacing general inflation. Understanding the scale of these increases can help you see how much your energy expenses have changed and what to expect moving forward.
Electricity prices have risen about 32% since 2014 in the US.
Since 2014, your electricity bill has likely gone up by around 32%. That’s mostly because the power grid is getting older and needs expensive upgrades to keep up with demand and extreme weather.
On average, the price you pay per kilowatt-hour has been creeping up nearly 3% each year. So, chances are, you’ve seen steady increases rather than sudden spikes. This trend affects most states, though where you live might change how much you actually pay.
Residential electricity costs increased nearly 7% in the last year alone.
If you noticed your electric bill jumping lately, you’re not imagining things. Residential electricity prices across the country went up by almost 7% in just the past year.
This rise means that, on average, households are paying more to keep the lights on and devices running. Factors like higher utility spending on infrastructure and clean energy programs have helped push prices upward.
So, if your budget feels tighter, part of that squeeze could be from electricity costs climbing faster than usual.
Prices have climbed faster than overall inflation since 2022
You’ve probably noticed your electricity bill going up more than usual lately. Since 2022, electricity prices have risen faster than general inflation, meaning your power costs are growing quicker than most other expenses.
This trend is expected to continue through 2026, with some areas seeing sharper increases than others. So, while you might be paying more for electricity now, those increases are likely to keep coming for a while.
Aging infrastructure has driven much of the recent price hikes.
You’ve probably noticed your electricity bills going up. One big reason is the aging power grid. Utilities have had to spend a lot to fix or replace old equipment.
This work isn’t cheap, and those costs often get passed on to you. Plus, the upgrades take time, which means prices can stay high for a while.
Your region’s weather events and rising electricity demand make the grid upgrades even more urgent. So, the aging infrastructure is a key factor in those higher bills.
Extreme weather events are pushing up electricity costs
You might have noticed your electricity bill rising during heat waves or cold snaps. That’s because extreme weather puts extra pressure on the power grid. When everyone cranks up their air conditioners or heaters, the demand spikes.
At the same time, these weather events can damage infrastructure, making it harder to keep the power flowing smoothly. As a result, utilities often have to use more expensive or backup sources of energy.
So, when the weather goes extreme, your electricity costs tend to go up too. It’s one of the reasons energy prices have been climbing steadily since 2020.
Utility upgrades contribute significantly to the rising bills
You might notice your electricity bill creeping up, and part of that is because of utility upgrades. Utilities are investing in modernizing aging power grids to make them more reliable.
These improvements cost a lot and those expenses often get passed on to you. Upgrades include replacing old equipment and adding technology to handle new demands, like electric vehicles and data centers.
While these changes aim to keep your power steady and prepare for the future, they also mean higher bills in the short term. So, your rising bill isn’t just about how much electricity you use but also about the infrastructure behind it.
Clean energy program costs play a role, but smaller than infrastructure.
You might think clean energy programs are driving your electricity bills up. While these programs do add some costs, they’re not the main reason prices have risen.
A bigger factor is the aging energy infrastructure. Updating power grids and building new transmission lines require large investments that push prices higher.
Cutting funding for clean energy can actually make electricity more expensive over time. But right now, infrastructure upgrades have a larger impact on your bill than clean energy costs.
States with already high prices are seeing bigger jumps
If your state already had high electricity prices, chances are your bills have jumped even more since 2020. Places like Hawaii and Connecticut are dealing with some of the steepest increases, making it tougher to keep costs down.
You might notice these hikes hit harder where the energy infrastructure requires expensive upgrades or where extreme weather drives up demand. So, if you live there, your electricity bill might feel a lot heavier these days.
Electricity demand surges are making delivery more expensive.
You’ve probably noticed your electricity bill creeping higher as more devices and appliances compete for power in your home. With everyone using more electricity, the demand on the grid is growing fast.
This extra demand means utilities have to work harder to keep the lights on. They need to invest in upgrading aging infrastructure, which costs money. Those costs usually get passed right to you in the form of higher prices.
Disaster recovery spending adds to overall electricity costs
When disasters like storms or wildfires hit, utilities have to spend big on repairs and recovery. This spending gets folded into your electricity bill over time.
You’re also paying for upgrades to make the grid tougher against future disasters. This means higher costs now but can help avoid bigger bills later.
Since 2019, utility budgets have included more for disaster recovery and clean energy programs. These factors push electricity prices up a bit every year.
So, part of your rising electricity costs comes down to preparing for and bouncing back from disasters. It’s a trade-off to keep your power reliable.
