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New analysis makes dark prediction on the future of US energy costs — these states should be the most concerned

The increases stem from a reconciliation bill signed July 4.

The increases stem from a reconciliation bill signed July 4.

Photo Credit: iStock

As temperatures rise everywhere, a new study warns that many Americans could soon be hit with higher electricity bills. This goes especially for those living in states that helped usher in the policy that is driving prices up, according to the Guardian.

What's happening?

An analysis from the nonprofit think tank Energy Innovation projects that electricity costs will rise an average of $170 per year by 2035, with Republican-leaning states — such as Missouri, Kentucky, and Oklahoma — taking the hardest hit.

The increases stem from a reconciliation bill signed July 4, nicknamed the "Big Beautiful Bill" by President Donald Trump. The bill slashes federal support for renewable energy projects, effectively forcing utilities to rely more on older, less efficient carbon-based infrastructure.

In Missouri and other politically "red" states, household energy bills could climb by as much as $640 per year. Many of these states also have some of the highest energy burdens for low-income households, a group already struggling with extreme summer heat. Some Democratic-leaning "blue" states were high up on the list as well, including Minnesota, Maryland, California, and Colorado.


Why are rising energy prices concerning?

Electricity prices have already outpaced inflation in recent years. With increasing demand, driven in part by artificial intelligence data centers and hotter summers, families are being pushed into impossible choices. Roughly one in four U.S. households had difficulty paying energy bills in 2020, according to the Energy Information Administration.

The new law also eliminates key federal programs that previously helped families make their homes more energy-efficient, including insulation upgrades and improved heating and cooling systems. The current administration is also looking to eliminate the Low Income Home Energy Assistance Program, a vital support for around 6 million households.

What can we do about rising energy prices?

While federal support for renewables is declining, many Americans are still exploring ways to save money and reduce pollution by going solar. Installing solar panels on your home can help lower long-term energy costs and slash your home's environmental footprint.

However, not everyone can fork over the upfront costs for solar panels — that's why leasing is an excellent alternative. Palmetto's LightReach program offers a way to lease solar panels with flexible plans, including options for no down payment.

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If you want to buy your own panels, Palmetto's concierge advisors can help you save up to $10,000 on installation through a network of preferred installers. And if you'd rather get solar savings without upfront costs, Palmetto's revolutionary LightReach subscription program can deliver.

LightReach lets you lease solar panels with no money down, making it painless to lock in long-term savings. Palmetto covers a 25-year warranty for the panels, which means you'll get reliable performance without unforeseen costs.

To get started, just answer a few basic questions about your home and connect with Palmetto's experts to find the option that's right for you.

Homeowners interested in savings options can also check out Palmetto's local tools, which provide personalized recommendations based on your region.

If leasing isn't for you, EnergySage offers free tools to estimate costs and compare solar panel quotes from local providers. And if you're unsure whether to lease or buy, you can explore this pros and cons list to help you decide.

As electricity prices climb and summer heat grows more dangerous, switching to solar can be a practical move that can protect your budget and make your community healthier and safer.

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