A new analysis by Energy Innovation, a non-partisan climate think tank, warns that electricity prices are expected to rise significantly over the next decade due to President Donald Trump’s recently signed energy bill, dubbed the “big beautiful” bill.
The legislation, signed on July 4, rolls back clean energy tax credits, expands oil and gas leasing, and caps subsidies for renewable energy. These changes are expected to have a long-term impact on clean energy development and electricity affordability across the United States.
The expiration of clean energy tax credits by the end of 2025 is projected to slow down the growth of renewable energy projects such as wind and solar. This decline in supply is expected to coincide with record-high energy demand, leading to increased electricity prices for American households.
According to Robbie Orvis, senior director at Energy Innovation, these rising costs will especially affect consumers who had previously benefited from the affordability of clean energy, and will also increase reliance on costlier natural gas.
States with Clean Energy Potential Face Steepest Increases in Future Power Costs
The rise in energy costs will not be uniform nationwide. States with strong potential for clean energy generation, like Oklahoma and South Carolina, are expected to see the largest increases in household energy bills. Oklahoma, for instance, is projected to experience an average increase of $540 per household annually by 2035 due to the removal of incentives for wind power.
On average, U.S. households will pay $170 more per year, though another estimate from Princeton’s REPEAT project suggests it could be as high as $280.
Trump’s Energy Bill Projected to Spike U.S. Power Bills, With Some States Facing $600+ Annual Hikes by 2035Energy Innovation’s projections compare two 2035 scenarios: one with Trump’s bill enacted and another without it. The analysis includes changes in electricity, natural gas, and gasoline costs but excludes Alaska and Hawaii. Most of the projected increases are linked to electricity and natural gas prices, highlighting the broader consequences of undoing nearly a dozen Biden-era clean energy initiatives, as well as some policies from earlier administrations.
State-by-State Breakdown of Cost Increases
Below is a table showing how much more, on average, households in each state could pay annually by 2035 due to the bill’s policy changes:
| State | Annual Increase ($) | State | Annual Increase ($) |
|---|---|---|---|
| Alabama | 200 | Montana | 240 |
| Arkansas | 430 | North Carolina | 490 |
| Arizona | 220 | North Dakota | 180 |
| California | 320 | Nebraska | 250 |
| Colorado | 310 | New Hampshire | 110 |
| Connecticut | 150 | New Jersey | 220 |
| Delaware | 150 | New Mexico | 220 |
| Florida | 430 | Nevada | 320 |
| Georgia | 270 | New York | 170 |
| Iowa | 350 | Ohio | 190 |
| Idaho | 130 | Oklahoma | 540 |
| Illinois | 180 | Oregon | 140 |
| Indiana | 340 | Pennsylvania | 160 |
| Kansas | 380 | Rhode Island | 180 |
| Kentucky | 630 | South Carolina | 630 |
| Louisiana | 440 | South Dakota | 120 |
| Massachusetts | 120 | Tennessee | 190 |
| Maryland | 350 | Texas | 480 |
| Maine | 80 | Utah | 320 |
| Michigan | 320 | Virginia | 250 |
| Minnesota | 410 | Vermont | 100 |
| Missouri | 640 | Washington | 55 |
| Mississippi | 200 | Wisconsin | 300 |
| West Virginia | 160 | Wyoming | 150 |
