Texas is on track to reach a major clean energy milestone.

In 2026, utility-scale solar power is expected to overtake coal generation across the state’s main electric grid for the first time, according to the U.S. Energy Information Administration’s latest Short-Term Energy Outlook.

The EIA projects that ERCOT, the grid operator that serves most of Texas, will receive roughly 78 billion kilowatt-hours of electricity from utility-scale solar in 2026, compared with about 60 billion kilowatt-hours from coal.

For one of the country’s largest energy markets, that shift marks a significant turning point.

The milestone is especially notable because Texas electricity demand continues to rise rapidly. ERCOT has been dealing with surging power demand driven by data centers, cryptocurrency mining, industrial growth, and oil and gas operations.

Rather than meeting all of that demand growth with more coal generation, Texas is increasingly leaning on solar energy.

That could bring benefits for both households and the environment. Solar power helps reduce reliance on dirtier electricity sources that release planet-warming pollution and harmful air contaminants.

Expanding renewable energy can also improve long-term energy affordability and diversify where electricity comes from — an important advantage in a fast-growing state vulnerable to extreme weather and grid strain.

The trend has been building for years. According to the EIA, solar climbed from 4% of ERCOT generation in 2021 to 12% in 2025, while coal fell from 19% to 13% over the same period.

Natural gas still dominates Texas generation overall, but solar is gaining ground quickly.

The EIA also expects Texas to account for roughly 40% of all new U.S. solar capacity additions in 2026.

Among the major projects expected to come online is Tehuacana Creek 1 Solar and BESS, an 837-megawatt facility that pairs solar panels with battery storage.

Batteries are becoming increasingly important because they can store excess solar energy for later use, helping stabilize the grid during periods of high demand.

Just as importantly, the EIA said no new coal plants are currently planned in ERCOT.

Monthly solar generation in ERCOT first surpassed coal in March 2025 and remained ahead through August. By 2027, the agency forecasts solar will outproduce coal in nearly every month of the year.

For Texans, that is more than a symbolic shift. More clean energy on the grid can support cleaner air, lower climate pollution, and strengthen the case for efficient electric technology in homes and businesses.

Homeowners interested in taking advantage of cheaper solar power can also explore generating electricity themselves. EnergySage offers free tools that help homeowners compare competitive bids from local installers and could help users save up to $10,000 on solar installation costs.

For people who are not ready to pay upfront, Palmetto‘s LightReach program offers a $0-down solar leasing option that can lower utility rates by up to 20%.

Get TCD’s free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.