Illinois Bets $1B on Battery Storage to Combat Soaring Energy Bills

Illinois is taking bold action to address electricity costs that have skyrocketed by one-third statewide over the past five years. The state legislature recently passed the Clean and Reliable Grid Affordability Act, a comprehensive energy reform package that makes a massive bet on battery storage technology to stabilize the grid and reduce long-term costs for consumers.

The landmark legislation will add 3 gigawatts of battery storage capacity to Illinois’ electrical grid—enough to power millions of homes during peak demand periods. While ratepayers will face a temporary surcharge starting in 2030, state analysis shows the $1 billion investment will save consumers more than $13 billion over two decades. The bill also lifts Illinois’ nearly 40-year ban on large-scale nuclear reactor construction, building on the state’s existing nuclear infrastructure that already provides over half its electricity.

The urgency is clear: more than 170,000 disconnection notices were sent to Illinois residents in June alone—nearly four times more than the previous year. Rising demand from power-hungry data centers, combined with federal cuts to clean energy funding under the Trump administration, has created a perfect storm of supply shortages and price increases.

Illinois becomes the first state to take significant climate action since Trump’s return to office, with environmental advocates calling it a crucial response to federal rollbacks of clean energy incentives. Beyond batteries, the legislation funds home energy efficiency programs, expands electric vehicle charging infrastructure, and invests in emerging technologies like geothermal energy—positioning Illinois as a leader in the clean energy transition despite federal headwinds.