Solar and battery storage cut wholesale energy costs in Texas by about $3.55 billion and in California by about $2.5 billion this summer, according to new data from the Solar Energy Industries Association (SEIA) reported by pv magazine USA. Together, the two largest US solar markets saved around $6 billion between June and August 2026.
How the savings were calculated
SEIA compared June to August 2026 with the same months in 2021. It used weighted average hourly day-ahead wholesale prices in the Texas grid, run by ERCOT, and the California grid, run by CAISO. All dollar figures are adjusted for inflation to 2026 values.
Prices fell as demand rose
In California, the average wholesale price fell by 51%, from $77.54/MWh to $38.32/MWh, while power consumption rose by 2.5%. In Texas, the average price fell by 42%, from $54.97/MWh to $31.77/MWh, even though total load grew by 30.1%.
Peak prices also came down sharply. In Texas, the highest hourly wholesale price fell from $110.96/MWh to $57.30/MWh.
What changed on the grid
The driver is a huge build-out of solar and batteries over five years. Utility-scale solar generation rose by 421% in Texas and 90% in California. Rooftop solar output grew by 172% in Texas, to 1,533 GWh, and by 107% in California, to 7,997 GWh.
Battery storage grew even faster. Texas increased its installed storage more than 26-fold to 33.1 GWh, and California nearly sevenfold to 62.0 GWh, as of the first half of 2026. Batteries now supply 6% to 7% of daily energy use in California and more than 1.3% in Texas, mostly by moving midday solar power into the evening peak.
"Texas and California are proof that the growth of solar and storage is driving down prices," said Tim Pawlenty, chief executive officer and president of SEIA.
Why bills are still rising
Cheaper wholesale power has not translated into lower total bills everywhere. The generation part of residential bills fell by 10% in California and 4% in Texas. But other charges grew. In California, transmission costs rose by 12%, distribution costs by 51% and other costs, such as wildfire management, by 90%. In Texas, transmission costs rose by 17% and distribution costs by 23%. SEIA says these grid charges keep retail bills under upward pressure.
What it means
For the Americas, the data gives a clear argument that solar plus storage lowers the cost of energy at scale, including in a market with fast-growing demand like Texas. It also shows where the next fight lies: the cost of wires, poles and wildfire protection. As tariffs and new trade rules raise equipment prices in the US, the debate over affordability is likely to shift from generation to the grid itself.
Source: pv magazine USA, based on data from the Solar Energy Industries Association (SEIA).
