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...