Texas solar power set to soar, projected to reach 36.1% of ERCOT market by February 2025.

Solar power in Texas is expected to increase significantly in the state’s electricity grid, accounting for 36.1% of the ERCOT market, rising to just over 30% by 13 February, according to the Institute for Energy Economics and Financial Analysis (IEEFA). This growth is seen as encouraging for the Texas solar sector, which accounts for around 90% of state’s power grid. The US Solar Energy Industries Association predicts that Texas’ solar sector will add 38.5GW of new capacity over the next five years, the most in the US. The falling costs of installing solar projects in US are driving this uptake, making new solar projects more attractive to potential investors. However, analysis from LevelTen Energy suggests that the average price of power purchase agreements (PPAs) signed in North America increased over the course of 2023, suggesting that renewable deployment is becoming more lucrative for developers. The EIA predicts that by 2025, Texas will have more solar generation capacity than wind as developers shift their focus from wind to solar.