An analysis by the Solar Energy Industries Association (SEIA) has found that summer wholesale electricity prices were 51% lower in California and 42% lower in Texas in 2026 than in 2021. The association has credited the growth of solar and battery storage for those falls, and it has put the savings at $2.5 billion and $3.55 billion respectively.
California price fall: 51%
Texas price fall: 42%
California storage: 62.0 GWh
Texas storage: 33.1 GWh
California savings: $2.5 billion
Texas savings: $3.55 billion
CAISO battery share: 6-7%
Texas demand growth: 30.1%
The Solar Energy Industries Association (SEIA), a US-based trade association for the solar and storage industries, has said that batteries and solar generation were behind the fall in summer wholesale prices. The average price from June to August of 2026 was 51% lower in California, United States, and 42% lower in Texas than it had been in the same months of 2021. The analysis was released on 22 October 2026, and its prices have been adjusted for inflation.
In California, the weighted average price fell from $77.54/MWh to $38.32/MWh, although the demand for electricity rose by 2.5%. In Texas, the price fell from $54.97/MWh to $31.77/MWh, although the demand rose by 30.1%. SEIA has valued these falls at about $2.5 billion for Californians and at about $3.55 billion for Texans over the three summer months of 2026.
The association has set those falls against the growth of new capacity in both markets. California had 8.1 GWh of installed storage in 2021 and 62.0 GWh by the first half of 2026, and its batteries now provide 6-7% of the daily energy use in the market of the California Independent System Operator (CAISO). Texas had 1.0 GWh in 2021 and 33.1 GWh by the same point, and storage now provides over 1.3% of the energy in the market of the Electric Reliability Council of Texas (ERCOT). Solar generation has also risen over the five years, by 90% in California and by 421% in Texas.
SEIA has explained that solar and storage have displaced expensive peaker generation in more hours, and that they have set the market-clearing price in more hours. In its figures, the average summer peak price has fallen from $141.75/MWh to $59.69/MWh in CAISO and from $110.96/MWh to $57.30/MWh in ERCOT.
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.Tim Pawlenty, Chief Executive Officer of SEIA
Those lower prices have reached residential bills only in part. The generation portion of a bill has fallen by 10% in California and by 4% in Texas, but higher transmission and distribution costs have raised the overall bill by 22% and by 3% respectively. Storage is meanwhile still being added across the United States, where a record 18.9 GWh was installed in the second quarter of 2026, and the 100 MW/200 MWh Citrus Flatts BESS of East Point Energy has started operations in ERCOT.