SEIA report shows solar’s summer success with spiking electrical bills
Energy affordability has become a crisis across much of the U.S., emerging as a top political priority in this year’s midterm elections. A new report from the Solar Energy Industries Association (SEIA) shows that solar and energy storage are already making headway on the issue.
The report states that solar and storage drove down average wholesale energy costs this summer in red and blue states alike, over the past five summers. In Texas and California alone, the two renewable energy sources brought prices down by 42% and 51% respectively.
Even as electricity prices skyrocketed thanks to the advent of AI and data center buildouts, solar and storage were able to get prices to fall, SEIA representatives say. Over the same five year period from 2021 to 2026, solar generation increased by 421% in Texas, and 90% in California, according to SEIA. Storage also grew sevenfold in California, and a massive 26-fold in Texas.
“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,” says SEIA CEO Tim Pawlenty.
The analysis also compared weighted average hourly wholesale electricity prices from summer 2021 to summer 2026, looking at both CAISO and ERCOT markets. Using inflation-adjusted dollars, the association found that CAISO used 2.5% more power with an average wholesale price 40% lower when accounting for inflation. In Texas’s ERCOT market, those numbers are 30.1% more power and 42% lower cost, respectively.
Bill savings with solar
The impact of solar and storage is “particularly noticeable” due to the severe uptick in energy demand, association officials say. The average wholesale price in California fell to just $38.32 per MWh after accounting for inflation, SEIA says, despite spiking demand, with Texan prices following the same trend.
The association says these lower electrical wholesale prices have reduced generation costs for residential customers, despite other expenses pushing bills higher than ever.
“From summer 2021 to summer 2026, residential generation costs fell 4% in Texas and 10% in California,” SEIA says. “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.”
SEIA’s full report, ‘Solar and Storage Saved Californians and Texans Billions in Energy Costs this Summer,’ is available on the association’s website now.
