Henry Hub Natural Gas Prices Plummet Amid Record Solar Power Generation

The price of natural gas at the Henry Hub in Louisiana averaged $2.93 per million British thermal units from June through August, a decrease of about 6% compared to the same period last year.

This drop in prices occurred despite the hottest July on record and increased electricity demand due to air conditioning usage, according to data released by the National Oceanic and Atmospheric Administration.

Solar power generation played a significant role in meeting the record-high electricity demand during summer 2026, with an increase of 22% compared to the same period last year, while wind generation rose 9.3 billion kilowatt-hours, representing a 9.8% increase over the same period.

The U.S. Department of Energy reported that total U.S. solar generation increased by an estimated 19.4 billion kilowatt-hours in June-August 2026 compared to the same period last year, while natural gas power grew only 7.5 billion kilowatt-hours, up 1.8%.