Higher-than-usual electric bills are sweeping the country as the summer scorches on. According to the U.S. Energy Information Administration, residential electricity prices in America are up 4.3% in 2025 with another 4.1% increase next year.

 

With that, the National Association of Home Builders (NAHB) says that one reason that there are higher costs is due to artificial intelligence (AI) data centers that are increasing demand. The association also claims that an electrified economy is also leading to higher use. Lastly, state and local bans on using natural gas to power newly constructed homes is putting even greater pressure and raising costs.

In California, as of January 1, 2020, all new residential buildings - and multi-family builds that are up to three stories high - were mandated to have solar panels. This solar mandate is a move to make this form of energy readily available. The California Clean Energy Commission conducted a study which shows that the average cost of a new home will increase by around $8,400 - around $40 a month extra in mortgage payments - to meet this standard. The commission found that an average electric bill will see a $80 savings or $40 of savings after the mortgage payment is made. Meaning that, California's move to mandate solar on new builds is a positive as electric bills rise.