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Solar and storage growth cut summer wholesale power prices 42% in Texas and 51% in California, SEIA finds

A Solar Energy Industries Association analysis released October 22, 2026 finds inflation-adjusted summer wholesale electricity prices fell 42% in Texas and 51% in California between 2021 and 2026 as solar generation and battery storage scaled rapidly - saving consumers in both states more than $6 billion this summer alone.

By Greener Numbers Editorial Team · Published October 23, 2026 · Updated 10/23/2026

Rapid growth of solar generation and battery storage drove average summer wholesale electricity prices down 42% in Texas and 51% in California between 2021 and 2026, according to an analysis released October 22, 2026 by the Solar Energy Industries Association.

The analysis compared weighted average hourly wholesale prices from June through August across the ERCOT and CAISO markets, in inflation-adjusted 2026 dollars. In Texas, the average fell from $54.97 per megawatt-hour in summer 2021 to $31.77 in summer 2026. In California, it fell from $77.54 to $38.32 over the same period.

The declines came despite rising electricity use. Texas demand grew 30% over the five years while solar generation increased 421% and battery storage capacity expanded more than twenty-six-fold. California demand rose 2.5% while solar output grew 90% and battery capacity expanded nearly sevenfold. From June through August 2026, solar and storage saved Texas consumers approximately $3.55 billion and California consumers about $2.5 billion compared with 2021 market conditions - more than $6 billion combined in one summer.

At the household level, cheaper wholesale power cut the generation portion of residential bills by 4% in Texas and 10% in California. Rising transmission and distribution costs still pushed total residential bills up 3% in Texas and 22% in California over the period. "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.

Official source: seia.org ↗