Electricity prices across the Midwest have increased considerably during the last few years. If you’ve been on the fence about switching to solar, it might be time to make the move. From increasing wholesale prices to shifting energy demands, several trends are converging to make solar a financially sound choice. Listed below are some of the reasons to consider making the move to solar power for your home or business.
New Data Centers Will Increase Demand
New data centers, some projected to use as much energy as entire cities, are adding even more pressure on the grid. According to Wisconsin, Rep. David Steffen, a new Microsoft data center in Mount Pleasant would use the same amount of energy as the city of Madison, and the Port Washington data center would use the same amount of power as the entire city of Los Angeles.
Along with data centers, manufacturing is expanding across the U.S. due to tariffs and new incentives in the One Big Beautiful Bill. AP News observed that Johnson & Johnson is investing $55 billion in the U.S. over the next 4 years, which will include 4 new manufacturing plants. The Telegraph highlighted that Wieland Rolled Products is investing $500 million to increase production and retain 800 jobs in Illinois.
While great for the U.S. economy, these, along with other major manufacturing investments, are creating a need for utilities to update aging infrastructure to meet the growing demand. Utility Dive emphasized that investor-owned U.S. electric utilities will invest more than $1.1 trillion in the 2025–2029 period as the sector rushes to meet growing power demand.
New facilities and upgrades are coming online quickly, so as the energy demand increases, the current supply versus the demand for available energy will cause the market to soar. Utilities will need to meet the demand of their customer base and will be forced to buy energy at much higher rates.
Without major changes, analysts predict that the average American household energy bill could increase between 25% and 70% in the next decade.
Energy Stats Worth Noting for Consumers
Due to energy policy changes and increasing demand, electricity and gas prices in Iowa, Wisconsin and Illinois have increased.
Iowans are forecast to pay $350 more per year for energy by 2035, according to The Des Moines Register.
Wholesale electricity prices are projected to rise 48% by 2035 in Iowa, reported in Energy Innovation Policy & Technology.
Data from the Illinois Citizens Utility Board shows that capacity auction prices, which determine a major part of your electric bill, surged to 830% year-over-year for 2025-2026 and recently set another record high of $329.17 per MW-day for 2026-2027.
Illinois electric customers are already feeling the impact, with ComEd and Ameren raising rates 53% and 47%, respectively, as stated in PR Newswire.
In Wisconsin, electric utilities are seeking double-digit increases over the next two years, and WisPolitics says the state now has the second-highest electricity rates in the Midwest.
Solar Incentives are Ending
In July of 2025, President Trump signed the One Big Beautiful Bill Act into law. Among its many provisions, the bill makes substantial changes to federal solar tax incentives* — and introduces hard deadlines that every homeowner and business should be aware of:
- The 30% Residential Federal Tax Credit* ended on December 31, 2025.
- The current 30% Commercial/Agricultural Federal Tax Credit* (Section 48E) will end on December 31, 2027. A project will qualify for the 30% Federal Tax Credit if the project construction commences before July 4, 2026. *
- If construction does not commence before July 4, 2026, the project must be placed in service before December 31, 2027.
- The bill restores 100% bonus depreciation on commercial solar projects — a major win for businesses looking to offset upfront costs.
Why Solar Could be the Solution
Going solar is no longer just an eco-conscious decision, it could be a financially strategic one. With utility prices climbing and federal tax credits* winding down, solar offers:
- Financial freedom from potential utility rate hikes.
- Immediate and consistent savings.
- Greater energy independence.
- Significant tax advantages — but only for a limited time.
Solar owners have the advantage of producing clean, affordable electricity from their personal solar array, and they can use that power immediately as it’s produced. This reduces the need to purchase power from the grid and helps to offset the amount of power purchased each day or month from the utility company.
This generally creates savings for the consumer, as the monthly payments for solar power are typically far less than they pay for grid electricity, according to Solar.com.
Additionally, the per kilowatt rate of a solar array is a fixed cost with a defined payback period. The per kilowatt rate from a utility company can increase and is out of the consumer’s control.
*Consult with your tax professional to learn more about how you can take advantage of tax credits and incentives. Not all clients are eligible for the Federal Investment Tax Credit (FITC).
Eagle Point Solar provides renewable solar energy solutions throughout Iowa, Illinois and Wisconsin. Eagle Point Solar also offers sales, design & engineering, permitting, utility interconnection, construction and maintenance. Learn more at EaglePointSolar.com.
Photos courtesy of Eagle Point Solar.
This article was originally published in Tri-State Home TRENDS, a Dubuque area magazine for new homeowners, home remodelers, home builders, and related industries. Single copies are available at Dubuque area newsstands for free or click here to read the digital version of the latest issue.
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