U.S. Electricity Prices May Rise by 50% Due to Inflation, Renewable Energy Equipment Becomes Critical

Foreign Media: US electricity demand is growing rapidly, and retail electricity prices may rise by 50% due to inflation over the next decade.

As the world's largest producer of renewable energy equipment, China accounts for a large share of global production of solar panels, wind turbines, electric vehicles, and batteries, and the prices of related products continue to decline. For example, in 2024 and 2025, grid battery prices dropped significantly, with costs dropping to $125 per kilowatt-hour, and the levelized storage cost was $65 per megawatt-hour.

If China's low-cost renewable energy equipment and grid batteries can enter the US market in large quantities, it will help stabilize US electricity prices. However, current Sino-US trade tensions have caused a significant increase in the cost of grid batteries imported from China to the US, with tariffs making the cost of four-hour batteries exceed 2023 levels. Existing tariff policies also delay US battery projects, creating uncertainty in the market.

Original article: toutiao.com/article/1851544656340044/

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