Analysis Says Trump Energy Policies Could Raise Household Electricity Costs

A sudden electricity crunch in the United States, driven by growing demand from artificial intelligence, is colliding with the Trump administration's efforts to scale back support for wind and solar energy.

A new report from the clean energy think tank Energy Innovation concludes that limiting renewable energy development while electricity demand rises could increase energy costs for American households over the next decade.

The report estimates households could pay an average of $460 more annually for energy by 2035 and up to $490 more by 2040. It also projects the administration's energy policies could increase overall consumer energy costs by more than half a trillion dollars through 2040.

The White House rejected the report's conclusions.

White House spokesperson Taylor Rogers called the analysis "fraudulent" and said the administration's policies end what it describes as costly clean energy subsidies while boosting domestic energy production to lower prices for consumers.

The debate comes as electricity prices have risen nationwide in recent months. Analysts point to several contributing factors, including increased electricity demand from artificial intelligence data centers, growing infrastructure needs and higher fuel costs.

The report argues that reducing incentives for renewable energy projects, electric vehicles and residential solar systems could slow deployment of lower-cost energy sources while extending the use of more expensive coal-fired power plants.

Administration officials, including Energy Secretary Chris Wright, have defended the policy changes, saying they improve grid reliability and allow market forces to determine future energy development.

The report also projects fewer electric vehicle sales, reduced rooftop solar installations and higher healthcare costs associated with increased air pollution if more coal plants remain in operation.