The Solar Energy Industries Association released a report analyzing electricity cost trends in Texas and California from 2021 to 2026, finding that increased solar deployment has generated significant savings for ratepayers across both states regardless of political affiliation.
According to SEIA’s analysis, wholesale electricity prices declined 42% in Texas and 51% in California between summer 2021 and summer 2026, despite demand rising 2.5% in California and 30% in Texas during the same period. Solar generation capacity expanded 421% in Texas and 90% in California, while battery storage capacity grew more than 26-fold in Texas and nearly sevenfold in California. SEIA calculated that solar and storage systems saved Texas ratepayers approximately $3.55 billion and California ratepayers approximately $2.5 billion during the summer months of this year compared to the same period five years earlier.
Residential generation costs fell 4% in Texas and 10% in California over the five-year study period. However, SEIA noted that retail electricity rates were pressured upward by transmission, distribution, and infrastructure costs, increasing 3% in Texas and 22% in California. The organization concluded that solar and storage growth has helped offset these rising infrastructure expenses.
Findings from a separate research effort by MIT Sloan School of Management corroborate SEIA’s conclusions. MIT researchers analyzed 25 years of electricity rates and utility costs, determining that utility-scale renewable energy projects correlate with lower retail rates for consumers. The MIT team found that state renewable portfolio standards mandates have virtually zero impact on residential energy prices. However, the researchers identified a distinction between utility-scale and rooftop solar installations, noting that rooftop systems can increase grid operational costs due to the technical complexity of managing bidirectional electricity flow on aging infrastructure.
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