by the numbers

Solar surpasses coal to become ERCOT’s third-largest power source in 2025

Solar represented 14 percent of energy supplied to the ERCOT electric grid in 2025. Photo via bp.com

Solar barely eclipsed coal to become the third biggest source of energy generated for the Electric Reliability Council of Texas (ERCOT) in 2025, according to new data.

In 2024, solar represented 10 percent of energy supplied to the ERCOT electric grid. Last year, that number climbed to 14 percent. During the same period, coal’s share remained at 13 percent.

From the largest to smallest share, here’s the breakdown of other ERCOT energy sources in 2025 compared with 2024:

  • Combined-cycle gas: 33 percent, down from 35 percent in 2024
  • Wind: 23 percent, down from 24 percent in 2024
  • Natural gas: 8 percent, down from 9 percent in 2024
  • Nuclear: 8 percent, unchanged from 2024
  • Other sources: 1 percent, unchanged from 2024

Combined, solar and wind accounted for 37 percent of ERCOT energy sources.

Looking ahead, solar promises to reign as the star of the ERCOT show:

  • An ERCOT report released in December 2024 said solar is on track to continue outpacing other energy sources in terms of growth of installed generating capacity, followed by battery energy storage.
  • In December, ERCOT reported that more than 11,100 megawatts of new generating capacity had been added to its grid since the previous winter. One megawatt of electricity serves about 250 homes in peak-demand periods. Battery energy storage made up 47 percent of the new capacity, with solar in second place at 40 percent.

The mix of ERCOT’s energy is critical to Texas’ growing need for electricity, as ERCOT manages about 90 percent of the electric load for the state, including the Houston metro area. Data centers, AI and population growth are driving heightened demand for electricity.

In the first nine months of 2025, Texas added a nation-leading 7.4 gigawatts of solar capacity, according to a report from data and analytics firm Wood Mackenzie and the Solar Energy Industries Association.

“Remarkable growth in Texas, Indiana, Utah and other states ... shows just how decisively the market is moving toward solar,” says Abigail Ross Hopper, president and CEO of the solar association.

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A View From HETI

Houston Texans legend J.J. Watt is an investor in and customer of Austin-based energy startup Base Power. Photo courtesy Base Power

Since retiring from the NFL three years ago, Houston Texans legend J.J. Watt has been exploring a new field—investing.

In 2023, the former defensive end and current CBS Sports football analyst bought a stake in English soccer team Burnley FC. A year later, he invested in the PopUp Bagels chain.

This summer, Watt made what may be his highest-profile investment yet. He contributed to a $1 billion Series D round for Austin-based energy startup Base Power, which has an office in Houston. It’s Watts’ first investment in the energy sector.

“I like companies that solve real problems, and Base is lowering power bills, protecting families, and building the whole thing themselves right here in Texas,” Watt said in a company news release.

“What impressed me wasn’t just how fast they’ve grown,” he adds. “It’s that they’ve already saved Texans millions on their power bills and kept thousands of homes running when the lights went out. That’s why I invested.”

Base Power is building a distributed network of residential batteries that’s designed to strengthen the grid and lower electrical bills. The startup now powers more than 30,000 homes in Texas, including the Houston area, and recently expanded to Illinois.

Base Power’s $1 billion round lifted its valuation to $13 billion. Since being founded in 2023, the startup has raised more than $2.5 billion.

“JJ is a legend in this state, and he earned that as much for how he shows up off the field as for what he did on it,” says Zach Dell, co-founder and CEO of Base Power. "He spent a full day with us asking every hard question he could think of, and then he switched to Base himself. We’re glad to have him partnering with us.”

Zach Dell is the only son of Austin billionaire Michael Dell, chairman and CEO of Round Rock-based Dell Technologies. Michael Dell grew up in Bellaire.

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