U.S. electricity demand projected to rise 20% by 2030

U.S. electricity demand is approaching a significant inflection point, with projections suggesting a 20% increase by 2030. This shift follows two decades of relatively flat annual growth. Key drivers for this surge include the energy requirements of AI hyperscalers, the electrification of the power grid via electric vehicles, and a reindustrialization of the manufacturing sector.

In Texas and California, recent data from the Solar Energy Industries Association (SEIA) indicates that solar and battery storage deployments significantly reduced wholesale energy costs during the summer of 2026. Compared to 2021 levels, these technologies saved Texans approximately $3.55 billion and Californians approximately $2.5 billion.

While wholesale prices fell in these regions due to rapid capacity additions in solar and storage, residential electricity prices remain high due to utility transmission and distribution grid charges. In Texas, solar generation increased by 421% and battery storage capacity expanded more than 26-fold between 2021 and 2026. Similarly, California saw a 90% increase in solar generation and a nearly sevenfold increase in battery storage capacity during the same period.