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ERCOT Solar to Surpass Coal in 2026, Led by 837‑MW Project

ERCOT solar generation is set to surpass coal in 2026, with the 837‑MW Tehuacana Creek 1 solar‑plus‑storage project leading the shift in Texas’ power mix.

Elena Voss/3 min/US

Business & Markets Editor

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ERCOT Solar to Surpass Coal in 2026, Led by 837‑MW Project
Credit: UnsplashOriginal source

TL;DR: Solar power in ERCOT is projected to generate 78 billion kilowatt‑hours in 2026, surpassing coal’s 60 billion kilowatt‑hours. The milestone follows a March 2025 monthly crossover and is bolstered by the upcoming 837‑megawatt Tehuacana Creek 1 solar‑plus‑storage project.

Context

ERCOT manages the electricity grid for about 90 % of Texas load. Solar output is measured in billion kilowatt‑hours (BkWh), which equals one thousand million kilowatt‑hours.

Over the past five years solar’s share of ERCOT generation grew from 4 % to 12 %, while coal’s share dropped from 19 % to 13 %. This change reflects steady solar capacity additions that help meet fast‑rising electricity demand.

ERCOT’s peak load has risen roughly 2 % annually, driven by new industrial projects and population growth.

Key Facts

ERCOT’s 2026 forecast shows solar generation at 78 BkWh, coal at 60 BkWh. In March 2025 solar generation first exceeded coal on a monthly basis, reaching 4.33 BkWh against coal’s 4.16 BkWh.

The Tehuacana Creek 1 Solar and BESS project, rated at 837 megawatts (MW), will be the largest solar photovoltaic facility to enter service in ERCOT next year. The project includes a battery energy storage system (BESS) with a capacity of 400 megawatt‑hours, allowing excess solar to be stored for later use.

What It Means

The annual crossover indicates that solar is becoming a core part of ERCOT’s supply mix. Growth is driven by large‑load sectors such as data centers, cryptocurrency mining, and expanding industrial activity. Because no new coal plants are planned, the grid’s future reliance on fossil fuels will continue to decline.

Analysts will monitor whether solar maintains its monthly advantage through most of 2027, except January and December. The performance of the Tehuacana Creek 1 battery storage component will be watched for its ability to smooth output during peak demand.

Policy makers and market participants will also watch how the shifting mix affects wholesale electricity prices and grid resilience as Texas demand keeps climbing. Reduced coal use is expected to lower carbon dioxide emissions from the power sector, aligning with state climate goals.

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