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The savings were overtaken by higher transmission and distribution costs.
Photo Credit: iStock
Throughout the past five years, increases in solar power and battery storage in Texas and California have coincided with steep declines in wholesale electricity prices.
Monthly utility bills didn’t fall with those market prices, though, because the cost of getting electricity to homes continued to climb.
As Solar Power World reported, a study by the Solar Energy Industries Association found average summer wholesale electricity prices in 2026 were far below 2021 levels, down 42% in Texas and 51% in California. The analysis used inflation-adjusted 2026 dollars and compared June-to-August prices across Texas’s ERCOT grid and California’s CAISO market.
In the Lone Star State, average summer power prices fell from $54.97 per megawatt-hour to $31.77 even as demand climbed 30%. In the Golden State, prices dropped from $77.54/MWh to $38.32 while electricity demand rose 2.5%.
The trade group also reported major growth in both states over that span, with solar generation up 421% in Texas and 90% in California and battery storage expanding by over 26 times in Texas and nearly seven times in California.
Even when delivery costs push household bills higher, going solar can still be one of the best ways to save money at home. Solar leases can deliver hundreds of dollars in monthly savings with no upfront costs, and EasyHome lets readers check savings from vetted local installers for free.
Compared with the same summer period in 2021, the trade group estimated solar and storage produced $3.6 billion in savings for Texas and about $2.5 billion for California from June through August.
Residential customers did benefit on the generation side, according to the trade group, with generation costs down 4% in Texas and 10% in California over the five-year stretch. But those savings were overtaken by higher transmission and distribution costs, which helps explain why overall household electricity bills rose.
With energy prices through the roof, there’s never been a better time to go solar — and EasyHome can help you find the best prices from the best installers in your area.
EasyHome takes the guesswork and headaches out of energy upgrades by showing you estimated savings from a network of vetted local partners. To get started, just enter your ZIP and share a few details about your home — seeing your estimate is really that easy.
The findings indicate that added solar and battery capacity can reduce bulk power prices for both the Electric Reliability Council of Texas and California Independent System Operator, even while grid upgrades and delivery infrastructure continue to put separate cost pressure on households.
In both states, more solar and storage went hand in hand with lower wholesale electricity prices.
When utility delivery fees rise faster than generation costs fall, behind-the-meter power becomes more important. Producing some of your own electricity can help protect your budget from charges that are otherwise largely outside your control.
That’s where EasyHome can help. Its free explorer tool lets you compare nearby solar options, and it also helps you explore backup battery storage. Pairing solar with a battery can maximize savings and keep your home powered when the grid goes down.
EnergySage is another avenue, letting you compare competitive bids from local installers without sharing your contact information unless you choose to work with one.
“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,” SEIA CEO Tim Pawlenty said.
Solar and storage trends are playing out in the country’s most populous states and elsewhere.
• In Texas, batteries and solar help ERCOT keep prices low during brutal summer demand.
• In California, rooftop solar turns into relief for low-income homes as power bills climb.
• For homeowners nationwide, solar rebates lower energy costs as electricity prices keep climbing.
• Across the U.S., rooftop solar helps households as utility-driven power costs rise.
• American households are hurting from massive rate hikes, and solar offers some protection.
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© 2025 THE COOL DOWN COMPANY. All Rights Reserved. Do not sell or share my personal information. Reach us at hello@thecooldown.com.

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