Solar expansion drove wholesale power prices down 42% in Texas and 51% in California, but delivery costs offset consumer savings
By Eve
A Solar Energy Industries Association study found that average summer wholesale electricity prices fell from $54.97 per megawatt hour to $31.77 in Texas and from $77.54 per megawatt hour to $38.32 in California between 2021 and 2026, despite demand rising 30% and 2.5% respectively. Solar generation grew 421% in Texas and 90% in California over the period, while battery storage expanded by over 26 times in Texas and nearly seven times in California. However, monthly utility bills did not decline because transmission and distribution costs continued to rise, offsetting the wholesale price reductions.
Why it matters
The divergence between falling wholesale power costs and rising consumer bills highlights infrastructure investment needs that could shape grid modernisation tenders and utility rate structures. For EV charging operators, lower wholesale prices may improve project economics where direct grid connections or time of use tariffs are available, though retail electricity costs remain a constraint on public charging margins.
Source
- Original title
- “In Texas and California, solar cut power prices, but delivery costs kept bills rising”
- Published
- 26 October 2026
- Updated
- 27 October 2026
In this story
- Topic
- Grid & Energy
- Place
- United States
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