US Electricity System Transforms Amid Rising Energy Costs and Renewable Shift
The US electricity system is undergoing a significant transformation, according to a Congressional Research Service report. Electricity prices have increased by 29% between 2019 and 2025, putting pressure on household budgets.
Despite this increase, utilities reported 13.4 million residential disconnections in 2024 out of 143 million customers served. This indicates that lower-income households are disproportionately affected by rising energy costs.
The shift towards renewable energy is driving the transformation of the US electricity system. Solar power accounts for 51% of planned utility-scale capacity additions in 2026, while battery storage represents 28%. Wind power comprises 14%, and natural gas accounts for just 7%.
However, the growth of intermittent wind and solar generation has created ongoing reliability challenges. Weather events such as hurricanes, wildfires, winter storms, and heat waves have exposed grid vulnerabilities. Cyberattacks also remain a persistent threat, although none have yet caused power outages in the US.