Why Energy Costs Are Rising In Arizona – And What Policy Has To Do With It
Arizonans are feeling pain at the pump and facing eye-popping electricity bills. These changes can be traced directly to policies and decisions made by President Trump and Congressional Republicans. Here’s how.
Clean Energy Rollbacks Equal Rising Costs
In 2025, President Trump signed H.R. 1 into law, halting progress made on clean energy. Many newer energy sources have low ongoing costs, making them cheaper over time. Without those energy sources, consumers are more reliant on fuels with volatile prices, driving costs higher for Arizonans. Fewer people using clean energy sources and fewer companies investing will increase costs for everyone.
The law eliminated tax credits that helped consumers and businesses afford electric and hybrid vehicles, as well as incentives for installing EV charging stations. Without those programs, fewer people are switching away from gas-powered vehicles, keeping demand for gasoline higher and prices up.
H.R. 1 also removed incentives for homeowners to install solar panels, battery storage, and other renewable energy systems. That means fewer homeowners will be able to afford installing these upgrades, raising electricity rates for everyone.
The same is true for commercial buildings. With energy efficiency tax credits expiring, building owners have less incentive to upgrade systems. These costs are often passed directly on to tenants.
H.R. 1 effectively eliminated pre-existing clean energy tax credits by shortening how long they’re available and making them harder to use. It fast-tracked the phasing out of credits for wind and solar projects, cutting off many projects after 2026, and ending a longer timeline based on emissions that was supposed to keep credits in place.
Jobs Are On The Line
These changes have halted a wave of clean energy investment and the hundreds of thousands of jobs that come with it. Between August 2022 and May 2025, the tax credits spurred $321 billion of investment in clean energy, electric vehicles, home electrification, and carbon reduction.
But due to the rollbacks in H.R. 1, planned projects will be canceled, and clean energy jobs will be lost – potentially hundreds of thousands of them, with 28,000 jobs at risk in Arizona in particular. These aren’t just abstract numbers—these are construction and manufacturing jobs that support local communities. Losing them means less economic activity and fewer opportunities across the state.
Electricity Bills Are Climbing
As energy supply tightens and fewer new projects are initiated, electricity rates are also projected to rise, by as high as 18% by 2035. For Arizonans, annual costs are increasing by an average of $210. Arizona’s heavy reliance on air conditioning makes it especially vulnerable to rising energy costs. Monthly energy prices in Arizona are already punishingly high – between March 2022 and June 2025, monthly costs averaged $289. And as Arizonans know, leaving the A/C off in 100+ degree weather simply isn’t an option. By voting for H.R. 1, Congressional Republicans voted to raise energy costs.
Rising Gas Prices
Electricity rates aren’t the only thing that’s rising – gas prices are going up too, thanks to H.R. 1 and other policy decisions.
H.R. 1 rolled back vehicle emission regulations and electric vehicle affordability programs, increasing the demand for oil. Due to these factors, Arizona households will spend an average of $310 more on gasoline by 2030.
Other policies are adding to the problem. Tariffs on materials like steel and aluminum – used throughout the oil and gas industry – are increasing the cost of building and maintaining energy infrastructure. These higher costs show up at the pump. When it becomes more expensive to build pipelines and transport fuel, those added costs ripple through the entire supply chain. Over time, they are passed on to consumers in the form of higher gasoline prices.
Global events are also playing a role. Fuel prices jumped up nearly a dollar per gallon after the U.S. and Israel attacked Iran on February 28. As of April 28, the average price per gallon in Arizona is $4.64 – higher than the national average and up significantly from the national average before the war. Congressional Republicans knowingly voted against congressional oversight of the war – meaning six Arizona representatives voted for pain at the pump.
Bottom Line
H.R. 1, tariffs, and ongoing shocks to the oil market – these policies are driving up the cost of energy in multiple ways by reducing investment in cheaper alternatives, increasing reliance on fossil fuels, and making Americans vulnerable to global supply chain volatility.
For Arizonans, the result is clear—higher electricity bills, higher gas prices, and fewer options to lower those costs in the future.