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Soaring temperatures mean soaring electricity bills, and this summer, the U.S. Energy Information Administration warns that “residential customers will likely experience the largest increase in average monthly electricity expenditures” across the country.
The report found that from June through September, average monthly electricity bills will reach $178, up from $173 last summer.
And for millions of Americans, the price tag could be even higher. The EIA 2025 report noted that New England “will likely experience the largest increase in average monthly electricity expenditures, with a forecast rise of $13 this summer compared with last summer.”
Thankfully, experts agree there are several ways homeowners can keep their homes cool, without going bankrupt.
(U.S. Energy Information Administration)
Where energy prices are rising the fastest—and why
While the report notes New England will experience the most significant increase in electric bills this summer, the West South Central region of the country will pay the highest one, at an average of $193.
The East South Central and South Atlantic regions follow, with average bills of $184 and $185, respectively.
The lowest energy bills will be for Americans living in the East North Central and West North Central regions, with average bills of $148 and $152, respectively.
Meanwhile, the Pacific and Mountain regions will actually see their bills decrease slightly this summer.
This tracks another report from the National Energy Assistance Directors Association, which noted that home cooling will cost an average of $784 this summer, up 6.2% from $737 last year.
The NEADA cites two reasons for the price hike: “The cost of electricity is rising faster than the average rate of inflation, and second, temperatures are continuing to increase, reflecting the continuing impact of climate change and requiring additional energy to cool indoor spaces.”
Max Dugan-Knight, a climate data researcher at Deep Sky Research, a carbon removal project developer, says rising energy prices are particularly damaging the U.S. Northeast.
“This comes down to a few factors: Energy demand is growing quickly due to new projects like AI data centers, new energy projects are not being built fast enough to keep pace, and this region is experiencing more frequent and more severe weather events like heatwaves,” he says. Climate change is causing temperatures to increase faster in the Northeast than the rest of the country, so energy prices are increasing faster there.
He add that the grid is not keeping pace with these changes, which tends to mean homeowners pay the price.
How much your cooling system is costing you
The cooling system you opt for could save you some dollars.
Central air
Danny Pen, president at New Era Plumbing & HVAC, which provides services in Massachusetts and New Hampshire, says the average cost of central AC is $120 to $180 a month (for 1,500-2,000 square feet of space and 13 SEER units).
“Central AC cools the entire home, even rooms you’re not using, so great for comfort, not for budgets. In some states, each degree below 75 degrees Fahrenheit could cost you $15 to $20 extra per month,” he says.
Window unit
According to Pen, a window unit costs around $80 a month, which amounts to a total of $100 to $200 since you will need around three to cool down.
“It’s an OK choice for isolated rooms (or apartments, attics, single-floor setups), otherwise expenses will rise (if you, for example, try to cool the whole house with a unit or a few),” he adds.
Evaporative coolers
These are much cheaper, ranging from $15 to $35 a month, Pen says.
“However, they only work well in dry heat (like Arizona), not humidity-heavy areas like New England. Here, evaporative coolers will just make your house feel stickier,” he notes.
How to stay cool without melting your budget
Thankfully, consumers don’t have to break the bank to keep cool and stay safe during the summer months. Experts say there are several ways to keep the heat at bay without melting your savings.
Adjust the temperature on your thermostat
Courtney Klosterman, home insights expert at Hippo Insurance, notes that the U.S. Department of Energy says you can save as much as 10% a year on heating and cooling by simply adjusting your thermostat 7 to 10 degrees for 8 hours a day from its normal setting.
Klosterman recommends setting your thermostat at a setting that’s still comfortable for everyone in your home, and keep it a few degrees higher in the summer than normal when you’re asleep or out of the house.
Seal up air leaks
This is another easy step that can save you dollars. Klosterman says that doors, windows, and other openings in your home are all potential sources of cooled air loss—even when closed.
“According to the DOE, nearly one-third of your home’s energy is lost through windows. Sealing air leaks can help your home retain cool air in the summer (and heat in the winter), thus keeping everyone comfortable and preventing your HVAC unit from working overtime,” she says.
Inspect the home HVAC system
Another simple tip is to have regular maintenance on your home’s HVAC systems to help ensure they operate properly and efficiently.
This entails replacing HVAC filters if you haven’t already in the past three months. and ensuring that furniture and curtains are not blocking vents and obstructing airflow, she says.
Do a home energy assessment
Klosterman explains that a home energy assessment involves inspecting each room of your house to identify your home’s energy usage and ways to help your home run more efficiently.
“This is a great step to take if you want to identify the solutions that will impact your home most. You can do a simple DIY home energy assessment to find issues that are easy to spot. You can also schedule a professional home energy assessment with an auditor who can thoroughly evaluate your home,” she adds.
Upgrade to a smart thermostat
This is a worthwhile long-term investment, as on average, homeowners can save around 8% on utility bills, according to Richie Drew, vice president of operations for One Hour Heating & Air Conditioning.
“That’s because a smart thermostat can be programmed to cool different areas of your home at set times, like when you leave for work or go to bed,” he says. Many models can also detect when no one’s home and automatically switch to energy-saving mode.
“The most advanced ones use AI to learn your habits and recommend a schedule,” Drew adds.
Use a smart strip
Christine Ciavardini, client relationship manager at MD Energy Advisors, says electronic appliances such as computers and gaming consoles use up to 75% of their electricity when powered off.
“Using a smart power strip will do the ‘unplugging’ for you and shuts off the electricity to the appliances when they are not in use,” Ciavardini says. Though the cost of a smart power strip is about $20, you’ll save far more.
Work with the sun
Josh Locker, training and technical support manager at Aux AIR USA, an energy-efficient residential HVAC brand, says you should “work with the sun, not against it.”
“Block out direct sunlight by closing blinds or curtains during peak daylight hours, especially on windows that face the sun. This simple step prevents your home from becoming a greenhouse and reduces the workload on your AC system,” he says.
And according to Drew, a good option is blackout curtains. While they won’t stop all heat from entering, especially conductive heat, they’re a solid first step, he says.
“We like to recommend window awnings as a great alternative or add-on to curtains. Energy.gov says awnings can reduce heat by up to 65% on south-facing windows and 77% on west-facing ones,” he says.
Another easy DIY option for summer, according to Drew, is to switch your ceiling fan blades to rotate counterclockwise.
“It creates a wind chill effect and helps you feel cooler,” he explains.