{"id":11113,"date":"2025-01-22T05:00:06","date_gmt":"2025-01-22T05:00:06","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=11113"},"modified":"2026-01-14T18:54:49","modified_gmt":"2026-01-14T18:54:49","slug":"will-electricity-prices-go-down","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/will-electricity-prices-go-down\/","title":{"rendered":"Will Electricity Prices Go Down in 2026?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">After several years of fast-rising electricity rates, many homeowners are feeling the pain of <a href=\"https:\/\/www.solar.com\/learn\/why-is-my-electricity-bill-so-high\/\" target=\"_blank\" rel=\"noopener\">high electricity bills<\/a> and wondering if utility rates will go down in 2026.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ll put it this way: Don\u2019t hold your breath for electricity prices to drop.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While we don\u2019t have a crystal ball, in this article we\u2019ll look at trends, forecasts, and economic forces to get a sense of what to expect from electricity prices in 2026 and beyond.<\/span><\/p>\n<p><strong>Jump ahead:<\/strong><\/p>\n<ul>\n<li><a href=\"#will\">Will utility electricity prices go down in 2026?<\/a><\/li>\n<li><a href=\"#what\">What causes electricity prices to increase?<\/a><\/li>\n<li><a href=\"#when\">When will electricity prices go down?<\/a><\/li>\n<li><a href=\"#electricity\">Electricity price forecasts: 2026 and beyond<\/a><\/li>\n<\/ul>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='will_electricity_prices_go_down' content_texts = 'true' upper_text='Lower and flatten your electricity costs' upper_text_span = 'with solar panels' lower_text='Compare quotes from vetted' lower_text_span = 'local installers' get_started_text='Get started' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"will\"><\/a>Will utility electricity prices go down in 2026?<\/span><\/h2>\n<p>No, utility electricity prices are expected to continue rising in 2026. The U.S. power grid faces a growing imbalance in supply and demand, which leads to higher prices.<\/p>\n<p>What&#8217;s increasing electricity demand?<\/p>\n<ul>\n<li>AI data centers<\/li>\n<li>Domestic manufacturing<\/li>\n<li>Electric vehicles<\/li>\n<li>Air conditioning for increasingly intense heat events<\/li>\n<\/ul>\n<p>What&#8217;s holding back electricity supply?<\/p>\n<ul>\n<li>Slow permitting &amp; interconnection processes for new power plants &amp; transmission<\/li>\n<li>The <a href=\"https:\/\/www.solar.com\/learn\/trumps-one-big-beautiful-bill-is-now-law-how-it-impacts-solar\/\" target=\"_blank\" rel=\"noopener\">&#8220;One Big Beautiful Bill&#8221;<\/a> removing incentives for wind &amp; solar<\/li>\n<li>Aging grid infrastructure in constant need of upgrades &amp; repairs<\/li>\n<li>Long lead times for gas and nuclear power plants<\/li>\n<\/ul>\n<p>With electricity demand expected to <a href=\"https:\/\/www.utilitydive.com\/news\/us-electricity-demand-will-grow-50-by-2050-electrical-manufacturer-study\/744575\/\" target=\"_blank\" rel=\"noopener\">grow by 50%<\/a> in the next 25 years, America needs all the new power plants and transmission lines it can get. However, Trump&#8217;s One Big Beautiful Bill removes incentives for the fastest and most cost-effective power sources: wind and solar.<\/p>\n<h3>Are electricity prices going up in 2026?<\/h3>\n<p>Yes, electricity prices are going up in several areas of the United States in 2026, according to utility rate filings. Some of the more notable rate increases proposed and planned for 2026 are listed below.<\/p>\n<table style=\"border-collapse: collapse; width: 100%; height: 216px;\">\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">State<\/td>\n<td style=\"width: 25%; height: 24px;\">Utility<\/td>\n<td style=\"width: 25%; height: 24px;\">Price increase<\/td>\n<td style=\"width: 25%; height: 24px;\">Timing<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">Colorado<\/td>\n<td style=\"width: 25%; height: 24px;\">Xcel Energy<\/td>\n<td style=\"width: 25%; height: 24px;\">9% rate increase<\/td>\n<td style=\"width: 25%; height: 24px;\">August 2026<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">Indiana<\/td>\n<td style=\"width: 25%; height: 24px;\">CenterPoint Energy<\/td>\n<td style=\"width: 25%; height: 24px;\">7.3% increase to average bill<\/td>\n<td style=\"width: 25%; height: 24px;\">Early 2026<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">New York<\/td>\n<td style=\"width: 25%; height: 24px;\">Con Edison<\/td>\n<td style=\"width: 25%; height: 24px;\">2.8% rate increase<\/td>\n<td style=\"width: 25%; height: 24px;\">January 2026<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">New York<\/td>\n<td style=\"width: 25%; height: 24px;\">NYSEG<\/td>\n<td style=\"width: 25%; height: 24px;\">26.3% increase to average bill*<\/td>\n<td style=\"width: 25%; height: 24px;\">April 2026<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">New York<\/td>\n<td style=\"width: 25%; height: 24px;\">Rochester Gas &amp; Electric<\/td>\n<td style=\"width: 25%; height: 24px;\">26% increase to average bill*<\/td>\n<td style=\"width: 25%; height: 24px;\">April 2026<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">South Carolina<\/td>\n<td style=\"width: 25%; height: 24px;\">Dominion Energy<\/td>\n<td style=\"width: 25%; height: 24px;\">12.7% increase to average bill*<\/td>\n<td style=\"width: 25%; height: 24px;\">July 2026<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">California<\/td>\n<td style=\"width: 25%; height: 24px;\">San Diego Gas &amp; Electric<\/td>\n<td style=\"width: 25%; height: 24px;\">$4 increase to average bill<\/td>\n<td style=\"width: 25%; height: 24px;\">January 2026<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">Wisconsin<\/td>\n<td style=\"width: 25%; height: 24px;\">Xcel Energy<\/td>\n<td style=\"width: 25%; height: 24px;\">$13 increase to average bill<\/td>\n<td style=\"width: 25%; height: 24px;\">January 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 25%;\">Delaware<\/td>\n<td style=\"width: 25%;\">Delmarva Power and Light<\/td>\n<td style=\"width: 25%;\">16-23% increase to base rates*<\/td>\n<td style=\"width: 25%;\">July 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 25%;\">Washington State<\/td>\n<td style=\"width: 25%;\">Seattle City Light<\/td>\n<td style=\"width: 25%;\">5.4% rate increase<\/td>\n<td style=\"width: 25%;\">January 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 25%;\">Washington State<\/td>\n<td style=\"width: 25%;\">Puget Sound Energy<\/td>\n<td style=\"width: 25%;\">12% rate increase<\/td>\n<td style=\"width: 25%;\">January 2026<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-size: 10pt;\"><em>*Proposed electricity service price increase that may change during approval process.<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"what\"><\/a>What causes electricity prices to increase?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Electricity \u2013 at least when it comes from a utility company \u2013 is a commodity and is therefore subject to the forces of supply and demand. At the most basic level, electricity prices are rising because demand is outpacing supply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After decades of relatively flat demand, electricity demand is increasing from home electrification, electric vehicle charging, and new power-hungry AI data centers coming online. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the supply side, <\/span><span style=\"font-weight: 400;\">there are serious issues at the core of the electricity supply chain. For example, the central grid system itself is outdated and inefficient, and the cost of trying to upgrade or rebuild grid infrastructure is passed onto utility ratepayers.<\/span><\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2025\/12\/Electricity-rates-pre-and-post-2021-1.png\" alt=\"graph showing electricity prices from 2000 to 2025\" width=\"1044\" height=\"600\" \/><\/p>\n<p><strong>Related reading: <\/strong><a href=\"https:\/\/www.solar.com\/learn\/average-electric-bill\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">What\u2019s the Average Electric Bill in Each State?<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"when\"><\/a>When will electricity prices go down?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Given the market forces explained above, and a 45-year trend of rising electricity prices, it\u2019s hard to imagine electricity prices coming down significantly in the near future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The chart below shows the average electricity price in the US from 1979 to 2024. In that 45-year period, prices have increased at an average annual rate of 2.9% and have only decreased year-over-year nine times.<\/span><\/p>\n<h3>Historical Electricity Prices Chart<\/h3>\n<p><img loading=\"lazy\" class=\"aligncenter size-medium\" src=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/07\/fredgraph-6.png\" alt=\"chart showing average US utility electric rates from 1979 to 2024\" width=\"800\" height=\"450\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Based on this history, electricity prices may fall year-over-year once or twice every decade, but in the big picture, they will continue climbing at a steady rate. The only question is at what rate will they climb?<\/span><\/p>\n<p>&nbsp;<\/p>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='will_electricity_prices_go_down' content_texts = 'true' upper_text='Lower and flatten your electricity costs' upper_text_span = 'with solar panels' lower_text='Compare quotes from vetted' lower_text_span = 'local installers' get_started_text='Get started' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\"><a id=\"electricity\"><\/a>Electricity price forecasts: 2026 and beyond<\/span><\/h2>\n<p>Depending on where you live, <strong>residential electricity rates are projected to rise between 15% and 40% by 2030<\/strong>, <a href=\"https:\/\/www.icf.com\/insights\/energy\/demand-growth-challenges-opportunities-utilities\" target=\"_blank\" rel=\"noopener\">according to ICF<\/a>, and could double by 2050. The main cause: We&#8217;re using more and more electricity to power AI, industrial manufacturing, transportation, heating, and cooling, and we aren&#8217;t building energy infrastructure fast enough to balance supply and demand.<\/p>\n<p>Unfortunately, the ICF rate forecast may end up being lower than reality. In July 2025, President <a href=\"https:\/\/www.solar.com\/learn\/trumps-one-big-beautiful-bill-is-now-law-how-it-impacts-solar\/\" target=\"_blank\" rel=\"noopener\">Trump signed the &#8220;One Big Beautiful Bill&#8221;<\/a> into law, which removed incentives and made it harder to build wind and solar projects needed to meet rising power demand.<\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Set a flat rate for your electricity<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Even if electricity prices go down in 2026 or the coming years, they are all but guaranteed to continue rising in the long term based on market forces. Home solar allows you to set a flat rate for your electricity and hedge against energy inflation.<\/span><\/p>\n<p><a href=\"http:\/\/solar.com\/dashboard\"><span style=\"font-weight: 400;\">Connect with an Energy Advisor to learn more about hedging against energy inflation with solar.<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After several years of fast-rising electricity rates, many homeowners are feeling the pain of high electricity bills and wondering if utility rates will go down in 2026. We\u2019ll put it&#8230;<\/p>\n","protected":false},"author":51,"featured_media":12404,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[46,2],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Will Electricity Prices Go Down in 2026? | Solar.com<\/title>\n<meta name=\"description\" content=\"Will electricity prices go down in 2026? 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He's been published by the Associated Press, Yahoo! Finance, MarketWatch, Home.com, Emeraldology.com and many other digital and print outlets. He's also been cited as a solar expert in The Mortage Reports Sam has a BA in Communication with an Emphasis in Journalism from the University of North Dakota and was named 425 Magazine's \\\"Top 30 Under 30 Professionals\\\" in 2020 while running an sustainable e-commerce startup. Based just outside of Seattle, WA, his 4.5 kW solar system provides enough power for his wife, daughter, and dog -- for now.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/samuel-wigness\/\",\"https:\/\/twitter.com\/SamuelWigness\"],\"url\":\"https:\/\/www.solar.com\/learn\/author\/swigness\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Will Electricity Prices Go Down in 2026? | Solar.com","description":"Will electricity prices go down in 2026? 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