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Batteries Drive Down Evening Electricity Prices Across the U.S.

economy-finance · 2026-08-19

Battery storage is lowering evening electricity prices across the United States. Historically, natural gas 'peaker' plants—expensive turbines built only for the year's highest-demand hours—were activated during summer heat waves to power air conditioners, making 7 p.m. electricity costly in many regions. The increasing use of batteries is now reducing these price spikes by supplying power during peak demand periods.

Key facts

  • Batteries are driving down evening electricity prices in the U.S.
  • Natural gas peaker plants are among the most expensive to run.
  • Peakers are used only during the highest-demand hours of the year.
  • Summer air conditioning causes simultaneous demand spikes.
  • 7 p.m. electricity was previously expensive in several U.S. regions.
  • Peaker plants are turbines built specifically for peak demand.

Entities

Locations

  • United States

Sources