As energy affordability becomes a decisive issue ahead of the midterm elections, the latest analysis from the Solar Energy Industries Association (SEIA) shows that solar and energy storage are reducing power costs in both red and blue states. According to the analysis, from the summer of 2021 to the summer of 2026, the growth of solar and energy storage helped lower Texas' average wholesale power prices by 42% and California's by 51%.

According to the new analysis, despite growing electricity demand in both states, power prices have continued to decline. Over the same five-year period, solar power generation in Texas increased by 421%, while in California it rose by 90%. Meanwhile, battery storage capacity in Texas expanded over 26-fold, and in California, it nearly multiplied sevenfold.

From June to August 2026, compared to the same period in 2021, solar and storage systems saved Texas approximately $3.55 billion and California about $2.5 billion.

As the midterms approach, providing affordable and reliable electricity is a priority that transcends partisan lines, and Texas and California serve as proof that the growth of solar and storage is driving down costs, said SEIA CEO Tim Penny.

In California, electricity usage increased by 2.5%, while the average wholesale price dropped from $77.54 per megawatt-hour to $38.32 per megawatt-hour after adjusting for inflation. In Texas, electricity demand surged by 30%, but the average wholesale price fell from $54.97 per megawatt-hour to $31.77 per megawatt-hour.

The decline in wholesale prices helps reduce residential customers' electricity generation costs, although other fees drive up bills. From the summer of 2021 to the summer of 2026, residential electricity generation costs in Texas dropped by 4%, while in California, they fell by 10%. Growth in solar and energy storage helps curb energy prices, though during the same period, transmission and distribution costs led to a 3% increase in overall electricity bills for Texas residents and a 22% rise for California residents.

This analysis compares the weighted average hourly wholesale electricity prices in the CAISO and ERCOT markets between June and August 2021 and the same period in 2026, calculated using inflation-adjusted U.S. dollars for 2026.