U.S. Electricity Bills Projected to Rise 8.5% This Summer
The National Energy Assistance Directors Association projects average electricity bills will rise 8.5% this summer due to extreme heat, data center demand, and grid reconstruction.
The National Energy Assistance Directors Association (NEADA) projects that average U.S. electricity bills from June through September 2026 will increase by approximately 8.5% compared to the previous summer. Costs are expected to rise more sharply in Southern states, with some forecasts exceeding 11.5% or even 13% in states such as Florida, Georgia, and Virginia.
This surge is driven by a combination of rising natural gas prices, investments in aging grid infrastructure, and increased energy demand from data centers. These factors are compounded by extreme heat from El Niño, which may result in one of the hottest summers on record. Nationwide, the cost of a kilowatt-hour has increased by more than 6% over the last year and 39% over the last five years, outpacing general inflation.
Financial strain is widespread, with a study by Prepaid Electricity indicating that 53% of U.S. households experience stress due to electricity costs. Approximately 13 million customers face temporary power shut-offs annually for unpaid bills. While the federal government provides aid through the Low Income Home Energy Assistance Program (LIHEAP), funding for the program has remained flat for three years despite the rising costs.
To mitigate expenses, experts recommend using window coverings, sealing ductwork, and installing smart thermostats. Some industry consultants are calling on the government to reinstate clean energy incentives following the 2025 expiration of a 30% solar equipment tax credit.