Texas recently surpassed California in grid-scale solar energy, solidifying its lead in the alternative energy sector, where Texas wind power has long been the national leader…

R Street Institute Texas Director and Resident Senior Fellow in energy Josiah Neeley told The Center Square the answer is in how California and Texas energy markets and regulations are structured. 

“These are two models about how you can get renewable energy deployment. In California it’s been very mandate and subsidy heavy. In Texas the growth of solar has been very rapid and it has not been because the state is doing a lot to encourage the development of solar power. The big thing Texas has is the competitive electricity market,” Neely said. 

In Texas, almost anyone who wants to or thinks they can make money selling electricity to the grid can build power and connect it to the state’s power system. On the retail side, consumers are free to choose their energy provider, and that includes the choice of clean energy, a sector that has seen significant growth in demand from consumers, explained Neely.

“You first saw that with wind, which ramped up really quickly,” Neely said. “Solar was a bit of a laggard because it couldn’t compete with wind, but as soon as the price got low enough and made economic sense it bloomed.”