Maguire: Key US electricity prices and output trends to 2025.

In the first half of 2025, there were a number of milestones in U.S. power and electricity, including records for generation, retail prices, and demand.

Here are some key data points to track the ongoing changes in the U.S. electricity and power sectors. These are being impacted by historical swings in federal policies, rapid deployment of clean energy and surging demand from consumers and businesses.

GROWTH OF OUTPUT

The U.S. electricity output between January and June 2025 will reach a new record as solar and wind farms produce at all-time levels.

Data from Ember show that the total utility-supplied electric production from January to the end of June reached 2,188 terawatts hours (TWh), the highest ever for this period. This is also 4% higher than the same months from 2024.

Solar output grew by 32% over the past year, and wind farm production reached a record. Clean energy electricity supply increased 6% from last year to 989 TWh.

In the months of January to June 2016, clean power sources accounted for a record 45.2% of all electricity, up from 44.2% in the same period a year earlier.

During January to June, fossil fuels produced 1,199 TWh or 54.8%.

Gas prices increased in early 2025, resulting in a 4% decline in output from natural gas plants.

In order to compensate for the drop in gas-powered power, utilities increased coal-fired electricity output by 17% from January to June compared with 2024. Coal generated 16% of all power, which is the highest level for the first half of this year since 2022.

Price Gains

The U.S. Federal Reserve System data shows that retail electricity prices in the U.S. also reached new heights this year.

In recent years, the cost of electricity in the United States has steadily increased due to a combination of factors, including the growth in electricity demand from data centers and AI applications as well as electric vehicles, air conditioners, and electric cars.

The average electricity rate in June of 2025 was 6.7% higher than the rate in the same month in 2024. This means that the cost of electricity for households has risen at a pace that is more than twice as fast as the overall consumer price inflation in the United States during that time period.

Electricity costs are rising due to the increasing spending of utilities on upgrading aging grids that struggle to handle higher loads and growing amounts of renewable energy.

BLAME GAME

U.S. president Donald Trump blames the policies of former president Joe Biden, saying that the subsidies for renewable energy supplies have increased costs for utilities.

Republican lawmakers cited high electricity costs in California, which has some of the most aggressive clean-energy targets in the nation, as proof that clean-energy goals increase consumer energy bills and as a justification for cutting clean-energy support from the latest budget.

However, electricity prices have risen in states that have a strong opposition to clean energy.

The U.S. Energy Information Administration's (EIA) data shows that electricity costs in California, the state with the highest prices, have been around 31.5 cents/kWh on average this year, compared to just under 32 cents/kWh by 2024.

Electricity prices in Iowa, Kansas, and Nevada have also fallen from a year earlier. These states have all seen a dramatic increase in the supply of clean energy in electricity production so far in this decade.

Electricity costs have increased far more in states that have energy systems which have suppressed the growth of renewable energy sources than the national average.

Florida, which bans wind power and limits state support for solar energy, has seen its average prices rise by 5% this year to 14.94 cents/kWh compared to 14.25 cents/kWh a decade ago.

Indiana, Tennessee South Carolina, Wisconsin and other states have seen their electricity prices rise more than the U.S. national average this year. They have also experienced a slower growth in clean energy than California this decade.

Electricity prices in these states are still below the national average of 16.75 cents/kWh, which is what they were so far this year.

All utilities are responsible for delivering grid upgrades in the next few years, as power demand is on the rise across the country.

Some states that have large amounts of solar and wind power may be able avoid steep price increases in the near future, since generation costs for renewables are often lower than fossil fuel plants.

In areas where there is little or no clean energy, utilities will have to increase the cost of electricity to consumers to continue operating fossil power plants.

These utilities are also more exposed to fossil fuel prices in the future, as federal funding for clean energy is cut and policy measures continue to direct power expansion towards fossil fuels.

This means that any additional increases in gas or coal costs due to increasing power demand could also be passed on by the consumers and could further increase the rise in energy bills for customers in areas lacking significant clean energy sources.

These are the opinions of the columnist, an author for.

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(source: Reuters)