A new report from the Solar Energy Industries Association (SEIA) indicates that the expansion of solar power and energy storage has significantly reduced wholesale electricity prices in Texas and California. Between summer 2021 and summer 2026, average wholesale electricity costs dropped by 42% in Texas and 51% in California.
During this five-year period, solar generation grew by 421% in Texas and 90% in California. Battery storage capacity saw even more dramatic growth, increasing more than 26-fold in Texas and nearly sevenfold in California. These technologies helped meet rising energy demand, which increased by 30% in Texas and 2.5% in California.
The financial impact for consumers was substantial during the summer of 2026. Compared to 2021, solar and storage solutions saved Texans approximately $3.55 billion and Californians approximately $2.5 billion. Wholesale prices in California fell from $77.54 to $38.32 per megawatt-hour, while in Texas they dropped from $54.97 to $31.77.
Research from the MIT Sloan School of Management supports these findings, noting that utility-scale renewable projects are associated with lower retail rates. However, the study distinguishes between utility-scale solar and rooftop installations, noting that the latter can increase grid maintenance costs due to the need for bidirectional power flow.
To address grid challenges, the MIT report recommends a three-part strategy: accelerating large-scale wind and solar projects, improving distribution grid efficiency, and adjusting utility rates to ensure equitable cost distribution among all ratepayers.
