A new bill from President Donald Trump could increase electricity costs for American households by as much as $400 annually. The legislation would remove federal tax credits for renewable energy sources like solar, wind, and geothermal power, leading to higher prices for electricity.
The rise in demand for electricity is partly due to the construction of data centers required for artificial intelligence. With power companies struggling to keep up with the rising needs, the removal of tax breaks for clean energy sources would make them more expensive. This could lead to a decrease in availability and an increase in gas prices, which currently account for 43% of US electricity.
The Trump administration argues that its measures will lower the cost of drilling and building pipelines, leading to lower average prices and profitability for businesses. However, critics warn that this would come at the expense of thousands of jobs by 2032 and exacerbate existing economic pressures on households and businesses.
In recent years, US residential electricity prices have increased by 13% on average since 2022, with some states like Ohio experiencing rising costs due to data center construction. California is also facing rising costs due to wildfires, while the unstable nature of natural gas prices has contributed to higher bills. The Trump administration’s plan to end the Low Income Home Energy Assistance Program could further worsen the situation for low-income households.
Source: https://www.independent.co.uk/news/world/americas/us-politics/donald-trump-electricity-costs-bill-b2763640.html