ANALYSIS: Solar and Storage Growth Drives Down Summer Wholesale Electricity Prices by 42% in Texas and 51% in California

WASHINGTON D.C. — As energy affordability emerges as a defining issue heading into the midterm elections, new analysis from the Solar Energy Industries Association (SEIA) shows how solar and energy storage are lowering electricity costs in red and blue states alike. Rapid growth in solar and energy storage helped drive down average wholesale electricity prices by 42% in Texas and 51% in California from summer 2021 to summer 2026.

Prices fell even as electricity demand grew in both states, according to the new analysis. Over the same five-year period, solar generation increased 421% in Texas and 90% in California, while battery storage capacity grew more than 26-fold in Texas and nearly sevenfold in California.

From June through August 2026, solar and storage saved Texans approximately $3.55 billion and Californians approximately $2.5 billion compared with the same period in 2021.

“As the midterm elections approach, delivering affordable, reliable power is a priority that transcends party lines and Texas and California are proof that the growth of solar and storage is driving down prices,” said SEIA CEO Tim Pawlenty.

The impact is particularly notable given how much electricity demand increased over the same period. In California, electricity use grew 2.5%, while the average wholesale price fell from $77.54/megawatt-hour (MWh) to $38.32/MWh after accounting for inflation. In Texas, electricity demand surged 30%, yet the average wholesale price fell from $54.97/MWh to $31.77/MWh.

Lower wholesale prices have helped reduce generation costs for residential customers, even as other expenses have pushed bills higher. From summer 2021 to summer 2026, residential generation costs fell 4% in Texas and 10% in California. Solar and storage growth has helped put downward pressure on energy prices despite transmission and distribution costs driving up overall residential electricity bills by 3% in Texas and 22% in California over the same time period.

The analysis compared weighted average hourly wholesale electricity prices from June to August in 2021 with the same period in 2026 across the CAISO and ERCOT markets, using inflation-adjusted 2026 dollars.

Download and explore the analysis here.

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About SEIA®: 

The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy. SEIA works with its 1,200 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn, and Instagram.