Household Electricity Bills Up 10%
August 19, 2025
Electricity bills for households in the U.S. have climbed by 10% since President Trump took office again. This shocking rise comes after tariffs and rollbacks on clean energy projects. It is a blow to families already stretched by rising costs.
The analysis, published today, shows how policy decisions are affecting everyday life. The increase ties directly to tariffs on clean energy components and cuts to renewable energy projects. These moves are leading to higher wholesale prices, which consumers eventually pay.
Why the Increase?
Experts point to several key actions that caused this rise:
- Tariffs on Clean Energy Materials
The Trump administration has placed high tariffs on steel, aluminum, solar modules, and battery components. This makes building solar and wind projects more expensive. It raises the cost of clean electricity. - End of Clean Energy Tax Credits
Tax incentives from the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) have been cut or eliminated. This removes cost-saving support for renewable projects. - Project Cancellations and Delays
Many renewable energy projects have been paused or canceled. In Texas alone, about 5 gigawatts of projects were called off in May—enough to power nearly 1.3 million homes.
Nationwide, clean energy projects worth $27.6 billion have stalled in the first six months of Trump’s term. - Energy Policy Rollbacks
The “Big Beautiful Bill” and other deregulatory moves have cut clean energy supports. This includes dismantling efficiency rules and rolling back climate protections—leading to higher energy costs over time. - Reduced Support for Consumers
Aid programs like LIHEAP, which help low-income families with energy costs, have been defunded or shut down. This leaves vulnerable households struggling even more.
The Political Angle
Chris Wright, the U.S. Energy Secretary, admitted rising energy prices could hurt Republicans in the midterm elections. Yet, he blamed Democrats for the increase, saying past clean energy momentum is pushing prices up now.
But analysts counter that these rises are a direct result of Trump’s policy decisions. The rollback of incentives and the surge in costs and delays add to the upward pressure on utility bills.
The Human Impact
Families across the country are feeling the squeeze.
- The average cost for electricity rose sharply. It accounts for a growing share of household budgets.
- Without help from LIHEAP, many must choose between paying bills and buying food or medicine.
- In some areas, electricity supply struggles to keep up with demand. This threatens both pricing and reliability.
Long-Term Effects
Experts warn that the cost increases are not just temporary:
- Household energy costs could rise by $110 to $400 per year by 2035 if current policies continue
- Analysis projects $46 to $160 more per household annually in the next decade, solely from repealed tax credits.
- States like Nevada will see big rises. Electricity costs could be up 6.1% by next year, and 6.6% by 2029. Nationally, increases could reach 8.4%.
- The overall U.S. economy may lose jobs and growth. Clean energy rollbacks may cost households $170 billion overall and reduce GDP.
Clean Energy Still Moves Forward—but Slower
Despite setbacks:
- Clean energy is still growing. In California, 7,000 megawatts of new clean capacity were added in 2024.
- But investment slowed sharply. New project announcements dropped from $15.9 billion in early 2024 to $3 billion now.
Analysts say the transition to clean energy will continue, but the new policies are slowing it and adding cost barriers.
What This Means for You
- Your electric bill might be noticeably higher—up around 10% since Trump took office.
- Costs will likely keep rising as policies delay clean energy and raise project costs.
- Some low-income families may face real hardship paying bills.
- The clean energy industry faces uncertainty, which may mean fewer jobs and less investment.
As of August 19, 2025, household electricity bills are up by about 10%. This rise is linked to tariffs, energy policy rollbacks, and the end of clean energy incentives. These changes slow the clean energy transition and raise long-term costs. Families and projects nationwide are feeling the effects now—and will likely feel them more in the years ahead.
