A new report from the Solar Energy Industries Association (SEIA) highlights the impact of solar and energy storage on wholesale electricity prices. Between summer 2021 and summer 2026, these technologies contributed to a 42% price reduction in Texas and a 51% drop in California.
The growth in capacity was significant over the five-year period. Solar generation rose by 421% in Texas and 90% in California. Simultaneously, battery storage capacity expanded more than 26-fold in Texas and nearly sevenfold in California, even as electricity demand increased in both regions.
Financial savings for the summer period of 2026 reached approximately $3.55 billion in Texas and $2.5 billion in California compared to 2021 levels. In California, wholesale prices fell from $77.54 per MWh to $38.32 per MWh, while in Texas, they dropped from $54.97 per MWh to $31.77 per MWh.
Despite rising transmission and distribution costs, residential generation expenses declined by 4% in Texas and 10% in California. The analysis utilized inflation-adjusted 2026 dollars to compare weighted average hourly wholesale prices across the CAISO and ERCOT markets.
