State-by-state electricity price trends reveal a complex mix of market, policy, and environmental pressures. (Berkeley Lab)
A new Lawrence Berkeley National Lab study found that while US retail electricity prices rose ~23% from 2019–24, much of that increase simply tracked inflation. The real story lies in how unevenly those changes hit states. Some saw major real price jumps, while others saw declines.
Prices climbed fastest in states with declining customer loads, driven partly by behind-the-meter solar adoption that reduced utility revenues. States with aggressive renewable portfolio standards (RPS) also saw higher costs as they added pricier renewable capacity to meet mandates.
Perhaps most surprisingly, states with growing demand generally saw lower average prices, since spreading fixed infrastructure costs across more consumption helped keep rates stable.