Why Home Energy Bills Are Expected to Rise This Summer— and What You Can Do About It
United States homeowners can most likely expect home energy bills to increase this summer, according to an official analysis shared by the Energy Information Administration (EIA).
The EIA works in tandem with the U.S. Department of Energy and is responsible for collecting data and providing analyses, forecasts, and other reports regarding energy and the environment, as well as how the two relate to the nation’s economy.
Last summer, residential customers spent a monthly average of $173 on their electricity bills, as reported by the EIA. This year, the average is expected to rise to $178 for the months of June through September.
Why the increase?
The EIA outlines two main factors that impact summer energy bills:
- Electricity consumption patterns — largely driven by outdoor temperatures
- Electricity prices
The EIA predicts that temperatures will be slightly cooler this summer (relative to last year), which slightly lowers the overall demand for electricity use for air conditioning.
Even with a decrease in consumption, the EIA explains that this will only partially offset the increase in electricity prices that are anticipated in most areas of the country (rising from 16.6 cents per kilowatt-hour in 2024 to 17.3 in 2025).
Which parts of the country will be impacted most?
Customers in New England are expected to see the highest year-over-year increase in their electricity bills— with the average expenditure rising by $13.
In fact, for different reasons, customers in both the New England and West South-Central regions are expected to have the highest bills overall this summer.
Bills for New England customers tend to be higher because of a higher average price per kilowatt-hour in that region (which is typical for the area, due to high costs for delivering natural gas). Higher bills for customers in the West South Central, on the other hand, represents an increased use of air conditioning to combat high temperatures and humidity levels.
On the national level, the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate predicted that this may be a record-high year for summer home cooling. In their annual Summer Residential Cooling Outlook for 2025, NEADA and CEPC proceed to explain that the cost of electricity is rising faster than average inflation.
Since the start of the season, utility companies nationwide have warned their residential customers that bills could notably increase over the next several months. With growing demand for electricity, Con Edison (serving New York City), for example, outlined that retail bills reflect the cost of generation, transmission and distribution, as well as taxes and other fees.
What can homeowners do to offset cost?
Across the nation, customers can reduce high electricity bills by upgrading efficiency at home— including smart thermostats, energy-saving appliances, and high-efficiency heating and cooling (HVAC) units.
As the nation’s only Certified B Corporation™ specializing in energy efficiency lending, the National Energy Improvement Fund (NEIF) is focused on increasing the affordability of home and building energy upgrades, empowering customers to Go Greener, Affordably. NEIF provides fair and transparent financing for essential energy efficiency and electrification improvements such as HVAC, insulation, windows, generators, lighting & battery storage.
Such improvements use less energy to perform the same tasks, helping to lower monthly costs. And while these types of upgrades can get costly upfront, NEIF can often finance up to 100% of project costs and provide the customer with fixed-rate, low monthly payment options.
Considering an upgrade? Learn how you can upgrade and save this summer with NEIF financing: https://www.neifund.org/!
SOURCES: Department of Energy (DOE), Energy Information Administration (EIA), National Energy Association and Directors Association (NAEDA) and Center for Energy Poverty and Climate (CEPC), Utility Dive