July's passage of the "Big Beautiful Bill" could send energy prices soaring, an analysis finds, with residents of 10 states facing average increases of more than $400 a year.
How do energy prices work?
Just like most things in the United States, energy prices are a product of supply and demand. In particular, the supply of renewable energy sources, such as wind and solar power, can play a huge role in consumers' monthly bills.
Renewable energy is considerably cheaper to produce than dirty energy from sources like coal and gas. So when legislation like the "Big Beautiful Bill" — passed in July by Congress — strips funding for renewable-energy projects, it means demand for more expensive energy options will increase.
That's one reason why at-home solar energy can be a good option for people looking to lower their monthly energy bills, while also lowering their reliance on the grid. Palmetto's LightReach leasing program can make that a reality, offering homeowners a chance to install solar panels with minimal (and sometimes zero) upfront costs.
Why you should care about energy prices
Simply put, any legislation that hikes energy prices means less money in your bank account each month. And in the case of President Donald Trump's "Big Beautiful Bill", that hike could be significant.
A new analysis from Energy Innovation shows that, by cutting support for wind and solar production and boosting dirty-fuel funding, the bill could cause electricity rates to rise by as much as 18% by 2035, the Guardian reported. For the average U.S. household, that would mean an extra $170 in energy costs each year.
The spike will be most dramatic in states that don't have their own renewable-energy policies in place, which also tend to be Republican-leaning states that voted for Trump. Missouri is projected to be hit the hardest, with families paying an extra $640 per year, followed closely by Kentucky, South Carolina, Oklahoma, North Carolina, and Texas.
As temperatures continue to get hotter worldwide, experts fear those soaring prices could prove to be fatal.
"People are reluctant to put on their AC because of the fear of a high bill," Columbia University energy researcher Diana Hernandez told the Guardian. "It's easy for them to get into a debt spiral and hard for them to get out of it. This can end up as a life-or-death matter."
How to help lower energy prices
Even if the government restricts funding for large-scale renewable-energy projects, that doesn't mean that you have to rely on dirty energy.
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Every day 😥 Palmetto's solar-leasing plans are one option to bring clean energy to your house. If buying solar panels instead sounds like the best option for you, EnergySage offers free tools that allow homeowners to easily compare quotes from local, verified installers.
And if you're not sure which option is right for you, check out the pros and cons of leasing and buying solar panels.
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