Electricity explained Use of electricity

Electricity consumption in the United States was about 4 trillion kilowatthours (kWh) in 2024

Electricity is an essential part of modern life and just as important to the U.S. economy. We use electricity for lighting, heating, cooling, refrigeration, appliance and machinery operation, and public transportation systems. Total U.S. electricity consumption in 2024 was about 4.10 trillion kWh, the highest recorded and 14 times greater than electricity use in 1950. Total annual U.S. electricity consumption increased in all but 12 years between 1950 and 2024, and 9 of the years with year-over-year decreases occurred after 2007.

Total electricity end-use consumption includes retail sales of electricity to consumers and direct-use electricity. Direct-use electricity means the electricity is used by the same industrial- or commercial-sector facility that produced it. Total direct-use electricity by the industrial and commercial sectors was about 3.4% of total electricity end-use consumption in 2024.

• The retail sales of electricity to major consuming sectors and percentage share of total electricity retail sales in 2024 were:¹
• residential1.49 trillion kWh37.6%
• commercial1.43 trillion kWh36.2%
• industrial1.03 trillion kWh26.0%
• transportation (mostly to public transit systems)0.01 trillion kWh0.2%

Heating and cooling are the largest residential electricity uses

Heating and cooling (air conditioning) account for the largest annual uses of electricity in the residential sector. Because heating and cooling are mainly weather driven, the amounts and shares of total annual residential electricity consumption vary from year to year. The Residential Energy Consumption Survey (RECS) data for 2020 indicate that air conditioning was the largest use of electricity in homes. The Annual Energy Outlook (AEO) provides estimates and projections for annual electricity use in the residential sector.

Computers and office equipment account for the largest share of commercial sector electricity consumption

Five electricity uses hold the largest shares of total annual electricity use in the commercial sector: computers and office equipment (combined), refrigeration, space cooling, lighting, and ventilation.

Historically, electricity use for lighting was typically the largest share of total annual commercial sector electricity use, but its share has declined over time, mainly because lighting equipment has increased its energy efficiency. Conversely, the amount and share of electricity use for computers and office equipment has increased over time. Space cooling requirements are determined by:

• Weather
• Climate
• Building design
• Heat produced by lighting equipment
• Computers
• Office equipment
• Miscellaneous appliances
• Building occupants

The Commercial Buildings Energy Consumption Survey (CBECS) provides detailed data on electricity use in commercial buildings. The AEO also provides estimates and projections of annual electricity use by the commercial sector.

Machines are the largest use of electricity by U.S. manufacturers

The industrial sector uses electricity to operate machinery and facilities. Some industries—such as aluminum and steel manufacturing—use electricity for process heat, and other industries—such as food processing—use electricity for cooling, freezing, and refrigerating food. Many manufacturers, especially pulp and paper and lumber mills, generate their own electricity for direct use, mostly in combined heat and power systems. Some manufactures sell some of the electricity they generate.

The Manufacturing Energy Consumption Survey (MECS) provides detailed data on electricity use by type of manufacturer and by major end use. The AEO provides estimates and projections for annual electricity purchases by the industrial sector and by type of industry and manufacturer. According to the 2023 AEO Reference cases, in 2024, manufacturers account for about 77% of total annual industrial sector electricity purchases, followed by construction (8%), mining (8%), and agriculture (7%).²

Electricity use in the United States is projected to grow slowly

Although near-term U.S. electricity demand may fluctuate because of year-to-year changes in weather, trends for long-term demand tend to be driven by economic growth offset by increases in energy end-use efficiency. In the 2023 AEO Reference case, the annual growth in total U.S. electricity demand is projected to average about 1% from 2022 through 2050.

World electricity consumption is expected to increase for all consuming sectors

In the International Energy Outlook 2023 Reference case, global electricity consumption is expected to increase in all major energy end-use sectors through 2050. Much of the increase is because, over time, we expect that electricity grids will expand in regions where access to an electricity grid is limited. For example, as electrification expands throughout China, India, and Africa and energy consumers gain access to electricity and, in turn, consume less end-use fossil fuels, electricity consumption increases. Efficiency improvements will offset some of the consumption increases, but increases in consumption due to electrification surpass decreases in consumption due to efficiency improvements.

Last updated: April 9, 2025.