New Study Finds U.S. Solar and Natural Gas Prices Are Not Converging

Dr. Nyangon, in collaboration with Prof. John Byrne and Dr. Job Taminiau, has published a groundbreaking study in WIRES Energy and Environment titled An Assessment of Price Convergence Between Natural Gas and Solar Photovoltaics in the U.S. Electricity Market.

The research investigates whether falling natural gas prices, driven by the U.S. shale boom, could slow the rapid growth of solar photovoltaics (PV). Using data from 2010–2015, the team applied advanced statistical tests to assess convergence between natural gas and solar PV electricity costs.

Results show that, nationally, PV and natural gas prices are not converging, indicating limited market integration. However, the study suggests potential regional integration and emphasizes the complementary strengths of both resources—fast-start capabilities for gas and low price volatility for solar—creating opportunities to expand overall energy demand.

This work provides critical insights for policymakers, utilities, and investors navigating the evolving U.S. electricity market, highlighting how diverse energy resources can coexist and mutually enhance the grid’s flexibility and resilience.