Do solar surges raise everyone’s electricity rates?

Solar energy uses sunlight to generate electricity, so it is a clean energy source.

April 22, 2026 by Earthtalk Leave a comment

by Adya Anand

Dear EarthTalk: Does the rise of solar power really make electricity more expensive for everyone?

—Julie Smith, Pittsburgh, PA

Solar energy promises long-term savings and environmental benefits, but the path to widespread adoption is challenging, especially as it affects electricity prices and the overall energy market.

Solar energy uses sunlight to generate electricity, so it is a clean energy source. However, it can be expensive to adopt. Much of the cost comes from the initial investment in infrastructure, including installing and integrating solar panels into the existing grid. These costs are balanced by relatively low maintenance and upfront operational costs. With ongoing advances in technology and decreasing costs, this renewable energy source is becoming more accessible and affordable for both consumers and utilities.

While these upfront costs may temporarily increase the price of electricity, these costs will stabilize and lead to more affordable energy for everyone over time.

There are also challenges due to the intermittent nature of solar power, available only during daylight hours, not aligned with peak demand times, such as evenings when electricity usage is highest. To ensure a reliable energy supply, backup sources such as natural gas are often required, leading to increased costs. Elmira Aliakbari of the Fraser Institute, a Canadian think tank, reports, “Building and maintaining a secondary energy source results in higher overall energy costs because one of the two energy systems costs more than one.”

Energy storage technologies, such as batteries and pumped hydropower, are essential to combat solar power intermittency. Storing excess solar energy for later use can reduce the need for backup sources. However, the cost of electricity storage remains a significant challenge, making it difficult to rely entirely on wind and solar power. Although energy storage is still expensive, advances in battery technology are expected to lower these costs over time, making solar power more affordable.

The increase in solar power may lead to short-term increases in electricity prices due to grid upgrades and energy storage costs. But in the long run, solar offers significant savings by reducing reliance on fossil fuels and reducing carbon emissions. Equally important is switching to energy-efficient appliances and supporting policies and organizations investing in renewable energy and energy storage solutions. Educating others about the benefits of solar power and participating in local initiatives like time-use energy programs can ensure a more sustainable and affordable energy future for everyone.

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Previously published in the newspaper

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