Wildfire Smoke Poses New Challenges for U.S. Power Sector
Wildfire smoke is emerging as a significant challenge for the U.S. power sector, particularly in the West, where solar energy is a growing source of electricity. According to a report by the Insurance Journal (published on August 17, 2026), smoke from wildfires can reduce solar energy output by scattering and absorbing sunlight, which is critical for photovoltaic panels. During California's 2020 wildfire season, solar resources near major fires dropped by 11% to 17% for global horizontal irradiance (GHI) and by 32% to 42% for direct normal irradiance (DNI). This reduction in solar output coincides with periods of high electricity demand due to heatwaves, creating a dual challenge for grid operators. Additionally, wildfire smoke complicates solar forecasting and increases stress on transmission systems, which are essential for transporting renewable energy over long distances. 
