As energy systems evolve, households face increasingly complex choices about how they power their lives. Understanding total energy spending—looking beyond utility bills to consider all direct household energy expenses—is key to informing those decisions.
In 2024, U.S. households on average spent approximately $5,530 on energy. Gasoline accounted for the largest share at $2,930, followed by electricity at $1,850. Electricity bills represent less than half of total energy expenditures in every state, emphasizing the need for a broader metric like the new EPRI Energy Wallet metric to inform policy and investment decisions and account for fuel-switching opportunities.
The Energy Wallet white paper provides a comprehensive view of household energy expenditures across the U.S. and tracks how these costs change over time. It includes direct spending on electricity, gas, heating fuels, residential solar, and electric vehicle (EV) charging.
The Energy Wallet study also highlights regional differences in energy expenditures. Households in New England had the highest energy costs in 2024, primarily driven by cold winters and wider use of fuel oil and propane for heating. Meanwhile, Utah had the lowest costs due to a milder climate and relatively low energy prices. These regional variations underscore the importance of localized data in understanding energy affordability and shaping effective, region-specific solutions.
Looking forward, EPRI used its energy modeling tools to project future trends in household energy expenditures. Across two alternative scenarios with higher and lower prices, the U.S. average Energy Wallet declined by 36% to 42% by 2050. The key drivers for this decline were technological advancements and structural shifts, particularly the electrification of light-duty vehicles. Even with increasing electricity use, efficiency gains from EVs and building electrification are projected to offset increases in electricity spending. State-level projections show a wide range of potential savings, from 10% to 50%, depending on local conditions. These projections are based on EPRI’s US-REGEN, an energy-economy model incorporating energy policy developments and economic adoption of emerging technologies.
Beyond quantifying current and future energy expenditures, the Energy Wallet serves as a foundation for deeper analysis. New research will leverage EPRI modeling tools to explore electrification trade-offs, including non-energy costs and benefits, and develop more granular affordability metrics, accounting for the full distribution of household types and income levels.
By offering a holistic view of household energy spending, Energy Wallet enables stakeholders to evaluate affordability more fully, guide investment and effective program implementation, and support equitable energy transitions.
To learn more about the Energy Wallet:
Listen to the EPRI Current Energy Wallet podcast episode featuring Michael Kohlhaas from Con Edison. We further discuss the Energy Wallet and its implications for household energy affordability and utility planning.
The full report is publicly available at energywallet.epri.com.