The US Energy Information Administration (EIA) expects residential electricity prices to rise by 5% in 2026, with further increases at a slower pace in 2027. The most significant price increases are forecast along the East Coast.
In its electricity outlook, the EIA projects US electricity demand to increase by 1.3% in 2026, averaging almost 4,250 billion kilowatt hours, and to grow by a further 3.1% in 2027. Demand growth is led by the commercial sector, which is expected to outpace residential demand in 2027 for the first time on record. Industrial demand is also rising, although at a slower rate, contributing to overall growth.
In its renewables outlook, the EIA forecasts wind to account for around 11.10% of US electricity generation in 2026, followed by solar at 8.09% and hydropower at 5.94%. Renewable energy sources, including biomass and geothermal, accounted for 22.49% of US electricity generation in 2024, rising to 24.05% in 2025. This share is expected to increase to 25.78% in 2026 and further to 27.23% in 2027. This is interpreted to refer to utility-scale generation and does not include distributed solar, which may add around 2% to the total.
Utility-scale solar generation is forecast to be 1.4% higher in 2026 than previously estimated, reflecting revised assumptions about installed capacity at the start of the year. Solar generation increased by 33.79% in 2025 compared with 2024, and is forecast to rise by 19.45% in 2026 and 18.57% in 2027.
Wind generation increased by 2.65% in 2025 compared with 2024. It is forecast to grow by 3.44% in 2026 and by 8.75% in 2027.
The data have been reviewed by the Sun Day Campaign.
