How Rising Energy Costs Are Forcing Millions Into Impossible Choices

As energy prices continue to rise, many Americans are facing tough decisions just to keep the lights on. In a nationwide survey of more than 1,000 people — nearly half from low-income households — we uncovered the difficult trade-offs families are making to afford electricity.

From cutting back on groceries to skipping medical care, the toll of unaffordable utility bills is both financial and deeply personal. This research shines a light on the everyday struggles faced by low-income communities and highlights the urgent need for affordable, reliable energy options.

Key Takeaways

• 39% of low-income households have fallen behind on electricity payments in the past year.
• Nearly 1 in 3 low-income households (32%) received at least one electricity shutoff notice in the past year, and 11% actually had their power shut off.
• More than half of low-income households (52%) cut back on food or groceries to afford utility bills, while 1 in 6 skipped medication or medical care.
• 56% of low-income households went without heat or AC for a few days in the past year because of the cost.
• Nearly 3 in 10 low-income households (29%) say they have felt physically unsafe at home due to extreme heat or cold.
• Low-income households (25%) are far more likely to say electricity bills are highly stressful than middle-income (14%) or upper-income households (8%).

Who Can’t Keep Up With Electricity Bills?

Many low-income households are struggling to keep pace with rising energy costs, and it’s leading to painful consequences.

Thirty-nine percent of low-income households reported falling behind on electricity payments within the past year. For some, the situation escalated quickly. Nearly 1 in 3 (32%) received at least one shutoff notice, and 11% had their power cut off.

To make ends meet, more than half of low-income households (52%) sacrificed food or other groceries to pay for utilities. Others skipped necessary medical care or medication (16%). Transportation (19%) and internet or phone service (19%) were also on the chopping block, and 5% of low-income households even missed rent or mortgage payments.

Household size plays a role in the struggle. Larger families reported more hardship: 30% of those with 5 or more people fell behind on energy payments, compared to just 19% of two-person and 18% of one-person households.

People are most often turning to credit cards (39%) to stay afloat, including younger Americans. Half of Gen Z and 40% of millennials reported using credit to pay utility bills, while the rates were lower among baby boomers (35%) and Gen X (29%).

Most concerning of all, 59% of low-income households fear their electricity could be shut off in the next 30 days. This rate far outpaces that of middle-income (41%) and upper-income (18%) families worried about the same thing.

The Human Cost of High Energy Prices

Beyond the financial stress, high electricity prices are creating real safety risks. More than half of low-income households said they went without heat or air conditioning for several days in the past year because they couldn’t afford it.

This lack of climate control isn’t just uncomfortable — it’s dangerous. Nearly 3 in 10 low-income families (29%) said they’ve felt physically unsafe in their homes due to extreme temperatures. In some cases (24%), families have had to send children or pets elsewhere to escape unsafe indoor conditions.

Coping Behaviors of Low-Income Households

When electricity becomes unaffordable, many families adopt extreme measures to cut costs.

To lower electricity bills, 1 in 8 low-income households reported using flashlights or phone lights instead of turning on the lights. Nearly 1 in 10 used candles for lighting, and another 9% even showered in the dark to avoid flipping a switch. To make things worse, 23% of low-income households said they don’t even know how to track their energy usage, making it harder to take control of their bills.

The emotional toll is significant. Low-income households were twice as likely as middle-income families to say their electricity bills are “highly stressful.” They were also more than three times more likely to report this when compared to upper-income homes.

Even across generations, stress levels varied. Gen X households felt it the most, with 18% reporting high stress over electricity bills, followed by millennials (17%) and baby boomers (15%). Interestingly, Gen Z reported the lowest stress at 11%.

Conclusion

Electricity is a basic need, but for many low-income families, it’s becoming a luxury they can’t afford. From going hungry to feeling unsafe at home, the rising cost of energy is forcing people to make impossible choices. As utility prices climb, the pressure on vulnerable households will only increase. It’s time for practical, affordable solutions that prioritize the health and dignity of all Americans.

Methodology

We surveyed 1,069 Americans to understand how they are coping with rising energy costs; 43% of respondents lived in low-income households, 48% in middle-income households, and 9% in upper-income households. For this study, household income groups were defined as follows, considering only households with at least three people:

• Low-income: Less than $56,600 annually
• Middle-income: Between $56,600 and $169,800
• Upper-income: Greater than $169,800 annually

Generationally, the sample included 16% Gen Z, 52% millennials, 23% Gen X, and 9% baby boomers. Data was collected in September 2025.

About Payless Power

Payless Power provides affordable, flexible prepaid electricity plans to Texas residents, with no deposit, no credit check required. Our mission is to help families stay connected without the stress of high upfront costs or complicated contracts. Whether you’re looking to lower your bills or gain more control over your usage, Payless Power offers simple solutions to keep your lights on.

Fair Use Statement

If you’d like to share or report on the findings in this article, we welcome it. Please include proper attribution and a link back to this page. This content is available for noncommercial use only.

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