FRANK LASEE: How Wind And Solar Are Quietly Inflating Electricity Bills

In the first five months of 2025, solar and wind dominated new U.S. electricity generation.  Of the 15 gigawatts (GW) added, solar was 11.5, wind was 2.3, and gas was just 1.3, according to the Federal Energy Regulatory Commission (FERC). Industry voices like Stephanie Bosh of the Solar Energy Industries Association hail this as proof that solar delivers power “faster and cheaper than any other source.” Is this true?

As we accelerate toward a grid increasingly reliant on wind and solar, a closer look reveals a troubling reality: these intermittent sources are driving up electricity costs, not slashing them, through a web of hidden expenses that threaten reliability and affordability.

Solar and wind’s part-time nature is the root issue. Solar generates nothing at night, little in the first and last hours of daylight, and falters under clouds, rain, or snow. Wind generation varies unpredictably. This intermittency doesn’t just displace fossil fuels like natural gas and coal—it forces them into inefficient backup roles.

Calling fossil fuels backups is a misuse of the English language that only serves the wind and solar industrial complex. It’s equivalent to calling the starting pitcher a backup in favor of a pitcher who can only play when the wind blows or the sun shines.

Hydrocarbon, coal and natural gas plants, with fixed costs (capital, maintenance, and employees) comprising 60-75% of operational costs, must raise prices on reduced sales volumes to break even. As renewables flood the market during peak production, they suppress wholesale prices temporarily, where subsidized low-bid renewables set the prices for all. In other grids, they get windfall profits, getting the highest price paid for electricity.

Yet, in the “pay-as-clear” system, evening ramps or scarcity periods spike prices, as expensive peaker plants — needed more frequently for renewable gaps caused by the addition of wind and solar — set the highest price, which is paid to all.

Consider the evidence from high wind and solar regions. California’s residential rates are 30-35 cents/kWh—nearly double the U.S. average of 17 cents — despite 50% wind and solar. Germany’s prices top 36-41 cents/kWh with 55% from wind and solar; Denmark and the UK follow suit at 37 and 29-32 cents, respectively.

These ambitious transitions expose the myth: wholesale dips from renewables are overshadowed by retail hikes from taxes, subsidies, grid upgrades, peakers, and using full-time coal and natural gas part-time.

In California, demand from EVs and data centers exacerbates this, and intermittency demands more peakers. These peaker plants run inefficiently, emit more when ramping up, and charge more because they are only used some of the time, causing costly price spikes. They set the price all generators are paid with the take-and-pay system.

In a grid of only hydro, nuclear, gas, and coal — dispatchable sources—peaker needs plummet. These can load-follow predictably, handling demand peaks without the supply volatility renewables cause. Hydro ramps quickly; nuclear provides steady baseload, natural gas and coal are dispatched to match demand. The system worked and was cost effective.

Pre-renewable grids used peakers sparingly, at 4-10%, versus 20% or more in solar-heavy systems like California, where the solar “duck curve” (charting solar generation creates a graph that looks like a duck, no production at night, the belly of the duck, ramp up during the day, the neck of the duck, with a sharp drop as the sun sets, the downward beak of the duck) requires rapid evening ramps of 10-20 GW.

Adding renewables means building more costly, underutilized peaker plants, inflating bills. Cancelling out much of the CO2 emission reductions that are the stated reason for adding costly disruptive wind and solar.

Transmission costs compound the problem. Wind thrives in remote plains or offshore; solar thrives in distant deserts. Connecting these to cities demands expensive high-voltage lines that cost $1-3 million per mile. Thousands of more miles than are needed for nearby hydrocarbon or nuclear plants.

U.S. estimates peg a price tag of $450 billion by 2035 for renewable integration, adding at least 2 cents/kWh to rates. In Germany, €70 billion in upgrades add 3 cents/kWh. Claims of renewables being “cheaper” rely on levelized cost of electricity (LCOE), ignoring transmission and peaker costs. Solar’s $30-50/MWh jumps 30% or more when transmission and backups are factored in.

FERC projects 84% of 133 GW additions by 2028 will come from wind and solar, making our grids less reliable and more expensive.

Policies like the One Big Beautiful Bill Act, which stripped tax subsidies and credits may slow growth, but the trend persists. We need honest accounting. We cannot ignore the wind and solar reality: more blackouts and ever higher prices.

Frank Lasee is the president of Truth in Energy and Climate and a former Wisconsin state senator.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

(Featured Image Media Credit: Screen Capture/PBS NewsHour)