California is at the forefront of solar energy production, yet its residents face soaring electricity bills and wasted renewable resources. Despite being home to some of the largest solar farms in North America and generating nearly a quarter of U.S. utility-scale solar power in 2023, the state struggles with a significant oversupply problem.
In the past year alone, California’s solar farms have curtailed production—slowing or halting it entirely—by over 2.9 million megawatt hours. This amount of wasted energy could power over half a million homes for a year. The primary reasons for this curtailment are outdated infrastructure and mismatched demand. Power lines lack the capacity to transport the excess energy, and demand often fails to keep pace with production, particularly during peak sunlight hours.
When supply overwhelms the grid, prices sometimes turn negative, meaning solar farms must pay energy traders to take the surplus electricity. States like Arizona, New Mexico, Oregon, and Washington reap the benefits of this excess, purchasing cheap or even free solar power, saving their own ratepayers millions. Meanwhile, Californians pay some of the nation’s highest electricity rates, which have risen by more than 50% in recent years.
One solution to this inefficiency lies in expanding the state’s battery storage capabilities. Batteries could store surplus solar energy for use during cloudy days or at night. While California has made strides in increasing its storage capacity—up over 1000% since Governor Gavin Newsom took office—it remains far behind what is needed to optimize the state’s renewable energy output. Upgrading transmission lines to handle higher capacity is another essential step, but such infrastructure improvements are expensive and time-consuming.
California’s current challenges highlight the urgency of finding innovative ways to manage its solar surplus. Exporting this excess energy to other states—or even other countries—could turn a liability into a major economic asset. By building robust transmission networks and forming cross-border energy partnerships, California could position itself as a renewable energy exporter, reducing waste and potentially lowering costs for its own residents.
As the state aims for 100% renewable energy by 2045, the success of its solar strategy will hinge on overcoming these logistical hurdles. Transforming its surplus energy from a problem into an opportunity could pave the way for California’s next major export—and set an example for the rest of the world.
