As the summer sun rises in the Texas skies, so does the heat - resulting in higher electricity prices for Texas consumers. However, according to a new analysis from the Brattle Group, harnessing the power of the sun could easily lower wholesale electricity prices in the state.

The energy consultancy reviewed Texas electricity market data from the summer of 2011 and found that if the Texas electricity grid had had an additional 1,000 megawatts of solar power then, average wholesale energy prices would have been reduced by approximately $0.6 per megawatt-hour.

If 2,500 MW were added to the grid, energy prices would have been reduced an additional $1.5/MWh, while 5,000 MW would have given $2.9/MWh of savings.

All in all, adding these amounts of solar energy to the grid would have saved customers an average of $155 to $281 per megawatt hour.

"This study shows that not only can solar energy help lower costs for Texans, but that adding solar capacity helps address the state's more urgent crisis of potential rolling blackouts during the hot summer months," said Carrie Cullen Hitt, vice president of state affairs for the Solar Energy Industries Association.

SEIA funded the Brattle Group report along with the Energy Foundation. The report's findings were also supported by the Texas Clean Energy Coalition.

Last year, the Electric Reliability Council of Texas was forced to issue six conservation alerts because of record electricity usage in the state. This resulted in electricity shutoffs for customers during emergency conditions. Similar capacity issues are foreseen for this summer.

Given the findings of the report and the high levels of solar irradiation in the state, Texas would be well served to look to adding more solar capacity to their energy mix, SEIA suggests.

As of 2011, Texas ranked 12TH in the United States for installed cumulative solar power with 77.7 mw and a total of 2,872 photovoltaic installations. The state's solar industry created around 3,346 solar jobs. – EcoSeed Staff