The path to lower energy costs is already here.

Their promise was lower energy costs in year one. Instead, our electricity bills keep climbing.

Electricity prices jumped nearly 7% in 2025, more than double the headline inflation rate. Don’t expect relief anytime soon: analysts say prices will continue to rise through 2030.

Surging energy demand

What’s driving up energy costs? The story is complicated, but a huge piece of the puzzle is this: Electricity demand is quickly outpacing supply. 

In the U.S., data centers will drive 40% of electricity demand growth from now till 2030. Electricity costs in areas near data centers are up as much as 267% compared to five years ago, per a Bloomberg News analysis.

So, we need more resources to fill the gap. Today, renewable energy checks all the boxes: it’s affordable, accessible, and ready to go. Solar, wind, and battery storage accounted for 92% of all new capacity added to the U.S. grid last year.

Yet, the current administration continues to obstruct energy development. They’ve stalled hundreds of wind and solar projects that provide some of the cheapest new electricity, and eliminated subsidies that would benefit everyday Americans. The so-called Environment “Protection” Agency abruptly terminated funds last August that would have helped over 900,000 low- and moderate-income families install solar panels on their homes. 

Taxpayer funds are, instead, being used to prop up the aging coal industry. The federal government forced Michigan to delay the J.H. Campbell coal plant’s retirement last May, and it has cost consumers more than $500,000 each day ever since.

Upgrading grid infrastructure 

The U.S. electric grid needs an upgrade: much of it was built in the 1960s and 1970s, and utilities have had to update or replace power lines, poles, and substations. These costs are passed on to consumers in the form of higher electricity bills.

Recent tariffs are further driving up the costs of equipment upgrades. In June 2025, the U.S. raised tariffs on aluminum and steel imports to 50%. 

Extreme weather is also contributing to price increases. As wildfires and storms become increasingly frequent and intense, utilities must ensure disaster preparedness is keeping pace. Since 2019, Californian utilities have spent roughly $3 billion a year on wildfire prevention – that could look like inspecting equipment, trimming trees near electrical towers, and installing “covered conductors” on power lines that make them less likely to spark if they hit a tree branch during a windstorm. 

(Though expensive, the costs of failing to prepare for wildfires run much higher: Pacific Gas and Electric paid more than $13.5 billion to wildfire victims in California after its equipment was linked to several deadly fires.)

The path forward: Affordable, reliable renewable energy

In spite of rising energy demand, higher bills are not inevitable. The choices policymakers make today will determine whether families continue footing the bill for outdated systems and volatile fossil fuels, or benefit from more affordable sources of energy.

State and local leaders must continue ramping up renewable energy production, widespread electrification, and energy efficiency measures. Proven solutions already exist. Innovative models like Community Choice Aggregation – which currently benefits more than 15 million Californians – offer communities greater local control over their energy while advancing sustainability goals. USCAN member Midwest Building Decarbonization Coalition is helping Midwestern buildings transition equitably to solar, wind, and geothermal energy.

Community Choice Aggregation allows local governments to procure electricity on behalf of residents to secure greener energy and lower rates. Graphic by Baker Home Energy.

Expanding rooftop solar, battery storage, and demand-response programs can further reduce strain on the grid. As well, policymakers must protect low-income households from rising energy costs, including expanding community solar subscriptions and home weatherization efforts.

Ultimately, we can double down on dirty, aging, and expensive infrastructure – or, we can build a modern grid powered by clean, affordable, homegrown energy. As energy economist Mark Wolfe writes: “The solution is neither complicated nor ideological.” Renewable energy, paired with energy efficiency and weatherization efforts, offers a path forward towards lower bills and healthy communities. 

The missing ingredient: the political will to stand up and prioritize people over the fossil fuel industry.

Cover image by Miguel Á. Padriñán via Pexels

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