How Renewable Energy Lowers the Price of Electricity on the Wholesale Market
Renewable energy offers several benefits, from public health to energy independence. One of the most powerful advantages, however, is its ability to lower the price of electricity on the wholesale market. This effect is called price suppression, and it’s why renewable energy is key to energy affordability.
Synapse Energy Economics estimated that between 2014 and 2019, BTM solar reduced wholesale energy market costs in New England by $1.1 billion. Another report from the Acadia Center found that on the highest-peak day of 2025, behind-the-meter solar met around 22% of system load, translating to more than 5,000 MW of distributed solar generation. This had the combined benefit of suppressing demand, preventing blackouts, and saving customers collectively between $8.2 million and potentially $19.4 million in energy costs.
Overall, bringing renewables online stabilizes the clearing price against volatile oil and gas prices, which leads to significant cost savings for ratepayers.
To read the full blog from Green Energy Consumers Alliance, click here.