State Overview

California

National Solar Capacity Ranking: 1st

Data Current Through: Q3 2024

California has the largest solar market in the U.S. and has been a longtime champion of solar because of the many economic and environmental benefits it provides, including billions in local investment. Solar supplies more than 25 percent of California’s electricity today, but it must play a bigger role if the state is to reach climate and energy goals.

California State Solar Overview

California has the largest solar market in the U.S. and has been a longtime champion of solar because of the many economic and environmental benefits it provides, including billions in local investment. Solar supplies more than 25 percent of California’s electricity today, but it must play a bigger role if the state is to reach climate and energy goals.

California Policy Priorities & Recent Highlights

  • To ensure the economics of investments in solar + storage were not significantly impacted, SEIA and other stakeholders successfully advocated for a reasonable fixed electric charge applicable to all residential customers. We continue to engage in the next round of the proceeding to ensure that the charge does not unreasonably escalate.
  • SEIA is working to enable faster interconnection for DERs and utility scale projects both through legislative efforts and at the PUC in proceeding R.24-01-018 (Energization).
  • To better enable solar + storage customers to monetize their investments, SEIA is prioritizing efforts on dynamic rates for each of the investor-owned utilities.
  • SEIA continues to advocate for significant improvements to the CPUC’s avoided cost calculator tool, which will be used to determine the benefits that distributed solar provides.
  • SEIA is prioritizing efforts to create a functional community solar program in California to take advantage of state and federal funding opportunities.
  • We continue to advocate for a flexible and scalable PV recycling program for solar systems through the legislature.
  • We are working to ensure California conforms to federal tax law to take full advantage of the IRA investment tax credits for transferability and direct pay by advocating for a legislative fix.

Just The Facts

  • Solar Installed (MW):

    49,777

  • National Ranking:

    1st (2nd in 2023)

  • Enough Solar Installed to Power:

    14,557,947 homes

  • Percentage of State's Electricity from Solar:

    31.37%

  • Solar Jobs:

    80,056

  • Solar Companies in State:

    2476 (427 Manufacturers, 1120 Installers/Developers, 929 Others)

  • Total Solar Investment in State:

    $108.7 billion

  • Prices have fallen:

    37% over the last 10 years

  • Growth Projection and Ranking:

    22982 MW over the next 5 years (ranks 2nd)

  • Number of Installations:

    2,127,724

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California Consumer Protection Resources

CPUC: California Solar Consumer Protection Guide

This guide is from the California Public Utilities Commission (CPUC), a government agency that regulates privately-owned utilities like Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E).

 

California Energy Storage Policy and Market Overview

Energy storage deployment in California is rapidly accelerating and procurement has increased by 1,250% since 2019. California is leading deployment with over 13,000 MW of storage capacity across nearly 155,000 sites. By 2045, the state expects to reach 52,000 MW of storage. However, the decision to phase out net metering for NEM 3.0 (Net Billing Tariff) presents market uncertainties.

The Energy Storage Systems Act (2010) was the first state legislation codifying an energy storage procurement policy, set at an aggressive 1,825 MW by 2020 with BTM carveouts. In 2024, California reaffirmed ambitious storage goals and set a long-duration energy storage target, planning for 2 GW by 2037. Coupled with swift regulatory guidelines, robust incentives, and state funding, the deployment of both BTM and grid-scale storage is thriving.

The statewide Self-Generation Incentive Program (SGIP) is a key component driving California’s successful market growth. SGIP is the largest solar and storage incentives program in the US, providing services valued at over $1 billion annually. California’s ambitious storage policies and incentives are forming one of the most robust procurements of energy storage infrastructure in the US.

 

California Energy Storage Policy Resources

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