Electricity prices are rising faster than inflation due to a surge in demand from data centers, outdated energy infrastructure, and increased utility spending on grid upgrades and transmission. The average U.S. household saw its rate increase 6\u20137% in the past year, with further hikes expected in coming years. Fortunately, solar energy offers a way to lock in lower, predictable energy costs for the long term.<\/p>\n
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The average residential electricity rate in the U.S. increased 6.7%<\/a> from June 2024 to June 2025, outpacing inflation for core commodities<\/a> such as food, shelter, and services during the same time period. For the average U.S. household, that translates to an additional $13.50 per monthly electricity bill<\/a>, or $162 per year, for using the same amount of electricity.<\/p>\n And this isn\u2019t a one-year blip. From 2021 to 2025, the average U.S. electricity rate increased 34%, adding over $500 to the average household’s annual electricity costs.<\/p>\n
| Month\/Year<\/td>\n | Avg. Price (cents\/kWh)<\/td>\n | % Change from previous year<\/td>\n<\/tr>\n |
| June 2021<\/td>\n | 14.2<\/td>\n | +3.6%<\/td>\n<\/tr>\n |
| June 2022<\/td>\n | 16<\/td>\n | +12.7%<\/td>\n<\/tr>\n |
| June 2023<\/td>\n | 17<\/td>\n | +6.3%<\/td>\n<\/tr>\n |
| June 2024<\/td>\n | 17.8<\/td>\n | +4.7%<\/td>\n<\/tr>\n |
| June 2025<\/td>\n | 19<\/td>\n | +6.7%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Of course, electricity rates rise at different speeds throughout the country, and some states have been hit harder than others in recent years.<\/p>\n <\/p>\n <\/p>\n Residents of Maine, Washington D.C., Maryland, Connecticut, and California have seen their electricity costs rise the fastest in recent years, with rates rising 29-39% from 2021 to 2025\u2014much faster than the historical average.<\/p>\n From 1980 to 2020, electricity rates increased at a relatively steady rate of 2-3% per year on average\u2014on or around the standard rate of inflation. Over a four-year period, it would be natural to expect your electricity rate to rise 12%. However, in the last four years, electricity rates have increased by more than 12% in all but 9 states<\/em>.<\/p>\n <\/p>\n |