CEBA Analysis Shows Restrictions on New Solar and Wind Resources Increase U.S. Energy Prices

Additional Costs Could Reach $121.2 billion, With Texas Facing the Largest Increase

WASHINGTON, June 11, 2026 /PRNewswire/ -- Constraining new solar and wind resources could cost the U.S. an additional $121.2 billion in electricity and natural gas expenses beginning in 2027 through 2033, according to a new study from the Corporate Energy Buyers Association (CEBA).

Today, CEBA is releasing a new analysis entitled "The Cost of Constraining New Solar and Wind" that compares both baseline and high-load-growth scenarios in which new solar and wind resources were and were not allowed to compete against other generation sources across U.S. power markets. The analysis was commissioned by CEBA and performed by NERA.

"To maintain economic competitiveness at this critical time, America's growing energy demand requires putting all energy options on the table," said CEBA CEO Rich Powell. "When all energy resources are allowed to compete on a level playing field, American households and businesses benefit. Meeting demand from data centers, advanced manufacturing, and other growing economic drivers requires smart policy."

Constraints on new solar and wind could add $81.2 billion, or $11.6 billion annually, in electricity and natural gas costs to household energy bills over the modeled seven-year period. Commercial and industrial customers across the U.S. are also projected to pay an additional $40 billion, or $5.7 billion annually, in electricity costs alone over the modeled period if new solar and wind resources are constrained. Combined, Americans are looking at the possibility of least $121.2 billion in additional energy costs over the next seven years. 

Electricity prices are already rising faster than general inflation, with the U.S. Energy Information Administration estimating electricity inflation at about 5% annually. The study found that the average U.S. electricity price (2027-2033) of a megawatt-hour of power could be up to 6.1% higher ($39.7/MWh versus $37.4 MWh). In other words, it's like adding one extra year of inflation to electricity prices. 

Notably, Texans stand to bear the greatest burden of constraints on new solar and wind: households served by the Texas grid operator (ERCOT) could see a 22.2% increase in average electricity costs beginning in 2027 through 2033. Economywide, residential and commercial/industrial customers in ERCOT could see $21 billion in additional electricity costs over the seven-year period, or $3 billion annually.

"Our analysis demonstrates the importance of deploying new solar and wind resources to mitigate upward pressure on electricity and natural gas costs," said Nidhi Thakar, CEBA's Senior Vice President for Policy. "Instituting technology-neutral permitting reforms and removing other deployment constraints are critical to providing reliable, affordable power for all consumers."

All modeled scenarios added new natural gas generation. However, constraining new solar and wind resources would lead to greater reliance on natural gas, with implications for consumer exposure to fuel price volatility and grid reliability risks during periods of peak energy use.

Technology-neutral permitting reform is essential to enabling competition among resources, helping ensure lower-cost, reliable electricity for all Americans.

The Corporate Energy Buyers Association (CEBA) is a business association that activates energy buyers and their partners to drive low-cost, reliable, carbon emissions-free global electricity systems. CEBA represents members with $40 trillion in market value, including energy customers of all sizes, suppliers, and service providers. Learn more at ceba.org and follow us on X and LinkedIn

Contact:
Susan Buehler, [email protected]

SOURCE Corporate Energy Buyers Association (CEBA)