The cost of electricity in the United States is on the rise, with recent data showing a significant increase in energy bills for American households.
The price of electricity increased by 28.5% between 2019 and 2024, from $0.14 per kilowatt hour to $0.18 per kilowatt hour, according to CBS News‘ price tracker. The average American now pays almost $300 a month for utilities as a result of this surge, creating questions about affordability.
Inflation is a contributing factor in the rising cost of electricity, but experts contend that extreme weather brought on by climate change is also a factor. People are using more energy to keep their homes cool as a result of two consecutive months of heat waves that broke records. As a result, the country’s outdated electrical grid is under stress and energy costs have increased.
Rising electricity bills are made worse by “energy poverty,” a condition in which households cannot afford to heat or cool their homes adequately. 16% of American households experience energy poverty, a problem that disproportionately affects Black, Hispanic, and Native American communities, according to a 2022 study published in Nature Communications.
Concerns about the dependability of the American power grid are growing, in addition to inflation and extreme weather. According to Climate Central, weather-related power outages have increased in frequency, with extreme weather events responsible for 80% of major power outages between 2000 and 2023. In its most recent infrastructure report card, the American Society of Civil Engineers awarded the US energy industry a C-, emphasizing the weaknesses in the country’s electrical transmission and distribution networks.
Experts believe that transitioning to clean energy will provide a long-term solution to rising electricity costs and grid reliability. Currently, fossil fuels account for 60% of US electricity generation, contributing to global temperature rise. Renewable energy sources, such as wind and solar, have been shown to help keep energy costs stable. States with high levels of renewable energy generation, such as New Mexico and Iowa, have seen the lowest increases in energy bills.
Investments in clean energy infrastructure could also provide significant cost savings for US households. A study by The Center for American Progress found that such investments could save households $500 per year on energy costs. However, experts emphasize the need for better policy and funding to ensure that the transition to clean energy is both affordable and accessible.
