Rising Energy Costs Increase Energy Insecurity
Our most recent power bill was $315 for a 1450 square foot home—a new high for our household. A work colleague’s power bill was over $1,000 last month. Replacing his inefficient HVAC system would cost $18,000. Energy prices have risen about twice as fast as overall inflation since the pandemic. Many households are struggling.
According to July 2026 Gallup poll data, 28% of Americans viewed economic issues as the most important problem facing our nation. Americans took a broad view on the nation’s economic challenges. 11% of respondents noted “high cost of living” as the most important problem in the U.S. and another 11% highlighted “economy in general.”
“Energy insecurity” is an inability to meet household energy needs. 43.56 million out of 132.54 million households in the U.S. experienced energy insecurity in 2024, according to preliminary results from the U.S. Energy Information Administration’s Residential Energy Consumption Survey released earlier this year.
Some households are at greater risk of facing energy insecurity than others. Low-income households experience higher levels of energy insecurity, in large part due to spending a larger percentage of their take-home pay on energy and having little to no discretionary income. Seniors and households with children are also at an elevated risk of energy insecurity. Certain racial and ethnic groups experience higher rates of energy insecurity, including Blacks, Hispanics, Native Americans, and Native Hawaiians or Pacific Islanders. Lastly, energy insecurity is more pronounced in the South than in other regions of the U.S.
Rising energy costs force hard trade-offs and sacrifices to keep the lights on and the temperature at a comfortable level. Many Americans scale back on luxuries like eating out, travel, recreation, or purchasing a new vehicle. More consequentially, millions will stop taking medications, forego medical or dental work, skip meals, curtail grocery purchases, cut retirement contributions, keep their home at unsafe temperatures, or make other strategic decisions to pay their power bills.
Making matters worse, elevated energy costs indirectly raise the price of many goods and services. Additionally, producing certain commodities is energy intensive, including aluminum, many electronics, and beef. Elevated costs are passed on to consumers. Consumers are seeing some higher prices today, but more increases are on the way if energy costs do not fall.
Several factors are directly exacerbating energy insecurity. Conflict in the Middle East is driving up the cost of energy. Opening of data centers can contribute to higher power bills for consumers by creating a spike in demand for energy and requiring new energy infrastructure. In Georgia, cost overruns associated with Georgia Power’s Plant Vogtle resulted in a $7.56 billion tab for ratepayers.
Other factors indirectly impact one’s ability to cover increased energy costs, including inflation, the cost of housing, and cooling wage growth. Additionally, millions of low-income Americans’ monthly budgets are further strained due to loss of Medicaid or Supplemental Nutrition Assistance Program benefits.
Improving the energy efficiency of homes has long been touted as a solution for rising energy costs. Replacing single-pane windows, installing solar panels, or replacing insulation have significant upfront costs. These expensive upgrades are out of reach for many low-income and fixed-income households. These individual solutions only address the symptom of the problem, rather than mitigate the cause.
Institutional solutions are warranted, including increasing energy supply, improving efficiency through regulation or incentive programs, improving electricity transmission infrastructure, expanding competition in electricity markets, and diversifying energy sources. Government can invest in strategic projects, streamline permitting, create geopolitical energy security, and expand consumer support for energy insecure households. A manifold approach is needed to address the energy insecurity crisis.
Roscoe Scarborough, Ph.D. is chair of the Department of Social Sciences and associate professor of sociology at College of Coastal Georgia. He is an associate scholar at the Reg Murphy Center for Economic and Policy Studies. He can be reached by email at rscarborough@ccga.edu.

