of utility-scale solar – enough to power 3 million homes during times of peak electricity demand, according to grid operator ERCOT.
For the IdeaSmiths study, researchers first modeled what the wholesale price would be if no renewable energy had been introduced into the system, and then compared the findings to the recorded prices. Assuming the wholesale price influences about 60 percent of the rate consumers pay, the study estimated that without renewables the average Texas resident would have spent between $189 and $200 more per year between 2018 and 2022 on the electricity use portion of the bill. The wholesale electricity price does not impact transmission and distribution costs, which make up a significant portion of utility bills.
“Renewables can provide savings, no question about it,” he said, adding that he was worried reports like Austin-based IdeaSmiths’ might lead people to believe renewable energy costs are much lower than they actually are. Because contract terms between companies are often private, it's hard to quantify how much renewables are actually impacting consumer bills.to change the state’s electricity system, including bills that some argue would hurt the state’s growing renewable energy industry.