U.S. Energy Statistics and Facts | SaveOnEnergy

Historical Energy Trends in the U.S

Dive into energy statistics and facts throughout U.S. history.

Written by Dominique Sabins

Edited by Hannah Hillson

Last updated 10/04/2024

The evolution of energy in the U.S.

Energy consumption and generation in the U.S. have rapidly changed over the last two decades to meet the growing demand. From 2001 to 2023, the U.S. population increased by 19.1%, which is over 54 million new consumers. Using data from the Energy Information Administration (EIA), we uncovered three significant changes: energy sources, usage, and cost. Learn more about these changes so you can stay informed for your next energy decision.

Energy resources

Over the last 20 years, there has been a major shift in the mix of energy sources. In 2001, the U.S. almost exclusively relied on coal for energy. But as of 2023, coal decreased 69%, accounting for only 16% of the country’s total energy generation. Over the same time period, natural gas increased 153% and renewable energy sources, such as wind and solar, grew in popularity. In 2023, wind accounted for 10% of U.S. energy generation and solar accounted for 6%. Gradually, these changes brought more diverse energy sources and consumer options.

SOE Historical - US Energy Generation - Infogram

United States energy generation by fuel source from 2001 to 2023.

Moving away from fossil fuels and towards renewable resources is a positive push for the United States — and the world. By decreasing non-renewable fossil fuels, we ease the strain on the environment by releasing fewer carbon emissions. Renewable resources chart an optimistic path forward because they are naturally replenishable and have little to no environmental impact. These significant energy changes move the country closer toward the goal set out in the Paris Agreement to limit the effects of climate change.

Average residential electricity usage

As the American population grew significantly, so did the energy demand. However, not all states share the same experience when it comes to electricity usage. Many factors contribute to a state’s energy consumption, including population and weather. Recent data from the EIA shows that Texas, Florida, and California use the most electricity nationwide.

Hover over your state to learn more.

SOE Historical Electric Usage by State - Infogram

Average monthly residential electricity usage by state.

As the graph displays, regional weather and demand contribute significantly to the cost of electricity. The southwest region experiences some of the highest summer temperatures in the country, requiring residents to rely heavily on air conditioning. In addition, some states, such as Louisiana and Arkansas, consume more energy than they produce and need to rely on external supplies, which can drive up the cost of electricity. In contrast, the mountain region typically has the lowest electricity cost due to low demand, a moderate climate, and abundant natural resources. Multiple states in the mountain region, including Montana, Wyoming, Utah, and Colorado, produce more electricity than they consume.

The average cost of electricity

The final significant change found in the EIA data is the average cost of electricity. In the last 13 years, the cost of electricity per kilowatt-hour (kWh) has increased 41.5%. The following graph documents the cost of electricity per kWh since 2013.

SOE Historical -Ave Electric Price - YR - Infogram

Average price of residential electricity in kilowatt-hours from 2010 to 2023.

In addition to population growth, the energy industry faces other challenges that impact cost. The average price of electricity boils down to three segments: distribution, generation, and transmission. Generation is the largest segment and accounts for 61.6% of the cost to supply electricity. The other two major components, transmission and distribution, are strained due to outdated infrastructure that dates back to World War II. These older power lines require maintenance or replacement, which drives up the delivery costs to homes and businesses.

Ways to take control of your energy

The easiest way to impact your energy bill is by using less electricity. Here are some tips for cutting down your energy costs:

If you want to invest more in your home’s electricity usage, consider switching to renewable sources and energy-efficient appliances. While some of these changes can be expensive, there are government incentives to help with the cost. The Inflation Reduction Act is a federal climate law that offers homeowners tax credits for energy-efficient upgrades. Starting January 1, 2023, this law allows you to claim a 30% tax credit of the total cost of installing solar, wind, geothermal, biomass, or fuel cell power.

This federal climate law also helps homeowners who install energy-efficient appliances, purchase electric vehicles, and conduct an energy audit on their homes. While many of these options can be expensive, the Inflation Reduction Act makes them more attainable. This may be a sustainable long-term solution if you live in a state that typically experiences high electricity usage and cost.

Change your energy future

Understanding the evolution of energy in the United States can empower you to make informed energy decisions for your household. While you cannot control the cost of electricity, you can control what energy resources you choose to power your home or business. From switching to LED light bulbs to investing in renewable energy, you have the power to make smart energy decisions by staying informed on current energy trends.