United States electricity demand is expected to grow, in part because data center demand could more than double by 2030. Utilities need to build power plants quickly to meet increased demand. This comes at a time when paying for electricity is an increasingly large burden for American families and businesses – costs increased 22 percent from 2018 to 2023, and could rise another 7 percent this year. To meet growing demand, utilities are largely turning to renewables as the fastest, most affordable way to bring more power online.
This research summary compares analyses from more than a dozen nonpartisan research groups, showing how repealing §45Y and §48E technology-neutral electricity tax credits would raise the nation’s household energy bills around $6 billion annually in the next five years and $25 billion annually by 2040. In some states, households would shoulder over $500 increases in their annual energy bills.
The report “Federal Clean Energy Tax Credits Make Energy More Affordable – A Meta-Analysis” by Energy Innovation concludes that inflation is hitting Americans hard, including on electricity bills. Federal energy tax credits are a bulwark against continued price increases. The research is clear – repealing technology-neutral energy tax credits would raise annual energy bills up to $140–$220 per year nationally, and over $500 per year in some states. Electric utilities know this – that’s why they are saying publicly that Congress would force consumer costs higher by repealing these vital money-saving laws. As Congress debates the future of these tax credits, repealing them is not the smart path forward, as it would exacerbate inflation and cut into Americans’ pocketbooks.
Access the report here
