US Electricity Consumption On The Rise: EIA

After nearly 2 decades of relative stability, the US' electricity consumption grew by 2% in 2024 and is expected to maintain that pace in 2025 and 2026.

If sustained, it would be the first time since 2005-07 that the country has experienced 3 consecutive years of electricity demand growth. Weather conditions could also play a significant role in enabling further growth.

The primary driver of rising electricity consumption is increasing power demand in the commercial and industrial sectors, said EIA. On the generation side, solar power is set to account for most of the growth. The US electric power sector is projected to add 26 GW of new solar capacity in 2025 and 22 GW in 2026, resulting in a 34% increase in solar generation in 2025 and a further 17% in 2026.

In H1 2024, solar accounted for 59% of all US utility-scale electricity generating capacity (see Solar Accounted For 59% Of All US Utility-Scale Electricity Generating Capacity).

As renewable energy sources expand, natural gas generation is expected to decline by 3% in 2025 and another 1% in 2026. Coal-fired power generation may dip by 1% in 2025 before seeing a slight rebound in 2026, as coal becomes more competitive against natural gas due to rising fuel costs, EIA found.