Summer cooling costs to rise 10.5%: Report

U.S. households are projected to spend more on cooling this summer, compared to last year, according to a new report released by the National Energy Assistance Directors Association (NEADA), based on an analysis of federal data. 

What’s happening: Average residential electricity expenditures from June to September are projected to increase by 10.5 percent year-over-year to roughly $792, driven by a mix of weather and higher electricity prices, per the report. 

• That would mark a more than 39 percent rise since 2020, it added; however, after adjusting for inflation, the figure would land at about 8.6 percent higher than in 2020. 

What they’re saying: “The affordability challenge is growing,” NEADA wrote. “One in six American households is behind on its utility bills, utilities disconnected electric service approximately 13.5 million times in 2024, and nearly 40 percent of households earning less than $50,000 report difficulty paying energy bills.”

Go deeper: The largest percentage increases are projected in the Mountain and South Atlantic regions, at 13.8 and 12.8 percent year-over-year, respectively, while the West South Central region (Arkansas, Louisiana, Oklahoma, Texas) is expected to have the highest average summer electric bill at $890. 

• Full report