Negative prices for electricity are getting more common in Europe and consumer costs have dipped—while Americans face rising energy bills

Electricity supply is increasingly outpacing demand in Europe as renewable energy capacity grows, making negative prices a more frequent occurrence.

In early 2020, Spain’s installed solar power capacity totaled nearly 9 gigawatts, according to data from Red Eléctrica. In early 2025, it had soared to 32 GW, helped by subsidies.

With solar panels and wind turbines installed in more places—while energy storage capacity is still lagging—an especially sunny and windy day can generate more electricity than is needed, sending prices below zero.

By September, the number of hours in Spain with negative electricity prices had already topped 500 for the year to date, more than double the full-year total for 2024. Similarly, France’s hours had topped 400 by then, also exceeding its 2024 tally, and Germany was on a trajectory to do so as well.<...