As Congress continues to roll out the One Big Beautiful Bill, new questions are surfacing about how its energy provisions might impact household budgets. A recent report from Energy Innovation points to potential increases in electricity costs tied to shifts in federal energy policy.
The bill expands oil and gas leasing, reduces certain clean energy subsidies, and phases out tax credits that have supported wind, solar, and other renewable energy projects. These tax credits are scheduled to expire at the end of 2025.
Without these incentives, the cost of developing renewable infrastructure is expected to rise. At the same time, demand for electricity in the U.S. is projected to hit record levels over the next decade. This mix—higher costs for new clean energy projects and growing demand—could slow renewable energy growth and increase reliance on natural gas, which may also become more expensive.
The Energy Innovation report estimates that average U.S. households could see electricity bills increase by around $170 per year by 2035, with some projections reaching as high as $280 annually. The actual impact will likely vary by state, depending on local energy resources and market conditions.
While it is still too early to know the full effect, these changes highlight the connection between federal policy decisions and everyday household expenses. As implementation continues, both consumers and policymakers will be watching closely to see how energy affordability evolves.
