How Have Electricity Price Trends Changed Since 2020 and What Can You Expect in 2025?
Electricity Price Trends: 2020-2024 Have you noticed that electricity is getting more expensive or that your electric bill keeps increasing
Electricity Price Trends: 2020-2024 Have you noticed that electricity is getting more expensive or that your electric bill keeps increasing
Have you noticed that electricity is getting more expensive or that your electric bill keeps increasing yearly?
Electricity prices have been steadily climbing since 2020, and people are asking, “When is it going to stop?”
At what point will electricity prices calm down?
In this short article, I will give you a very simple overview of electricity price trends from 2020 to 2024 and some basic predictions about where prices are most likely headed in 2025 and beyond.
Just how much have electricity prices increased in the past few years?
And what’s causing the increase?
From 2020 to 2024, electric prices rose by about 6.8% annually on average, which is notably higher than the overall inflation rate of about 4.9% for the same timeframe.
This indicates that electricity prices have been increasing faster than many other goods and services, contributing to the overall cost pressures we’ve been facing daily!
4.3% increase
13.1% increase
5.8% increase
4.2% increase
These rate increases reflect various contributing factors, including rising fuel costs, particularly natural gas, which is a major source of electricity generation, investments required for grid modernization, and regulatory changes pushing for cleaner energy production, which often comes at a higher initial cost.
But where are electricity prices expected to go in 2025 and beyond?
I don’t mean to be the bearer of bad news but predictions show that in 2025, we are expecting a continued increase in electricity prices due to one simple concept:
SUPPLY AND DEMAND
While electricity prices every year, we usually don’t notice too much of a difference because the increase isn’t so big.
But something has started to change that.
For the past two decades, US electricity demand has been rather stagnant, but as of last year, it has started to rise and is expected to continue going up.
And the underlying drivers behind these increases suggest this is just the beginning of a longer-term trend.
Due to these three factors, electricity prices will keep trending up – unless we find better ways to save energy or cheaper ways to make it.
Understanding electricity price trends is essential for planning your energy spending.
So, how can you reduce your electric bills while prices increase?
Lock in Competitive Energy Rates
Shop around for better energy rates from a retail supplier and consider securing those rates for 3–5 years. This locks in a fixed rate so you won’t be hit by unexpected price hikes.
Use Less Energy Through Efficiency
Look for ways to reduce overall energy consumption. Upgrading to LED lighting, using energy-efficient appliances and office equipment, and optimizing HVAC systems can make a big difference in your monthly bills.
Enroll in Peak Demand Programs
By reducing your consumption during peak hours, you can lower demand charges and even earn credits or rebates from your utility. These programs reward businesses and homeowners who help ease grid stress.
Talking to energy experts can help you identify efficiency upgrades and explore different energy choices that may lower your bills and give you more control.
As the market evolves, staying updated on energy news and forecasts helps you make smarter decisions—whether that’s cutting back on usage, investing in energy-saving technology, or exploring green energy alternatives.
But don’t wait until you get a shock from your next bill.
Contact our team at Energy Professionals!
We can help you find lower energy rates, negotiate the best contract terms with retail energy suppliers, and develop a strategy to manage rising costs and help you gain greater control over your energy future.
James Lightning
Senior Editor, Energy Professionals
(844) 674-5465
info@energyprofessionals.com
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