Electricity bills are rising across the United States, impacting household budgets as winter heating demands increase. The national average cost to heat a home this winter is expected to climb 7.6%, increasing from $907 to $976, according to the National Energy Assistance Directors Association (NEADA).
The surge in costs is largely attributed to increases in electricity rates, which rose in every state throughout 2025. The cost of heating a home with electricity is projected to increase by 4% nationally compared to last winter, according to This Old House. While natural gas bills are projected to decrease by 5% in the South, the overall trend points to higher energy expenses for many Americans.
“Four percent may not sound like a lot, but it’s a big share of homeowner’s wallets and it’s a sizable enough increase in heating costs that people will feel it,” said Kevin O’Connor, host of This Old House. “And they’re going to immediately be thinking about ‘what can I do about it?’”
Experts suggest several immediate steps homeowners can take to mitigate rising costs. These include sealing air leaks around windows and doors with weatherstripping, installing door sweeps, and ensuring sash locks are tightly secured. These relatively inexpensive fixes can significantly reduce air infiltration, a major contributor to heat loss.
For those considering longer-term investments, adding insulation, replacing windows, upgrading doors, or scheduling maintenance for heating equipment are recommended. However, the rising costs are not limited to homeowners; approximately 21 million households are currently behind on their energy bills, with total arrearages growing 31% from $17.5 billion to $23 billion. NEADA anticipates around four million disconnections in 2025.
New York residents are experiencing particularly high electricity costs, averaging $260 per month, or $0.22 per kilowatt-hour (kWh) as of February 15, 2026 – approximately 17% higher than the national average of $0.19/kWh. Over 25 years, a New York resident will pay approximately $97,400 for electricity. Nationwide, residential electricity prices have climbed 10.5% between January and August 2025, increasing average monthly bills from $142 to $156.
The increases are driven, in part, by demand and the demand for grid upgrades to accommodate growing energy consumption, including the expansion of data centers. According to projections, U.S. Residential electricity prices are expected to reach 18.02¢/kWh in 2026. The situation is particularly acute in the South, West, and Midwest, where heating costs are projected to rise by 15.4%, 14.8%, and 14.4% respectively.
