Californians Could Save $6.5 Billion With Community Solar & Storage

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A new study has found that expanding community solar and storage across California could save electricity customers a staggering $6.5 billion over the next 20 years. Commissioned by the Coalition for Community Solar Access, the report by Aurora Energy Research shows that investing in 5.4 gigawatts (GW) of local solar and battery storage would lower costs for everyone on the grid, whether or not they directly participate.

A Smarter, More Local Energy Future

Instead of depending on massive, centralized solar farms and expensive long-distance transmission lines, this study points to a better way: building solar and storage projects closer to the people who use the power. By putting energy projects right in California’s communities in both cities and rural areas, the state could reduce the need for expensive gas generation and avoid costly grid upgrades.

Here’s a quick look at the savings:

• $4.2 billion from lower electricity prices
• $4.6 billion from reduced costs to ensure enough power during peak demand hours (Resource Adequacy)
• $910 million from avoiding upgrades to transmission and distribution lines

Even after accounting for higher upfront costs (about $3.2 billion more than building massive utility-scale projects), the numbers still add up to big savings​. And the best part? These savings don’t just help people who sign up for community solar projects — they benefit everyone who uses electricity in California.

“This report confirms what we’ve seen in community solar markets nationwide. When paired with storage, local solar is one of the most cost-effective tools we have — it lowers energy costs for everyone on the grid while helping California improve reliability and reduce emissions, without requiring new transmission lines or taxpayer spending.” — Derek Chernow, Western Regional Director at the Coalition for Community Solar Access

Cleaner Air, Stronger Grid

Community solar and storage wouldn’t just save money — it would also help California hit its climate goals faster:

• Cut greenhouse gas emissions from the electricity sector by 1.8%
• Decrease reliance on gas-fired power plants by 2.5%
• Reduce the amount of electricity the state has to import from other states by 13%​

Plus, by spreading solar and storage across many locations, the grid becomes more reliable. With less need to move energy long distances, there’s less congestion and fewer risks of blackouts.

Even If Big Transmission Projects Stall, Community Solar Delivers

One big bonus the study highlights is that community solar and storage still saves money even if major transmission line projects are delayed or canceled. In a scenario where $1.1 billion worth of planned transmission upgrades don’t happen, the community solar and storage plan would still save Californians $2.4 billion​. That flexibility is crucial at a time when building big transmission lines can take a decade or more and run into fierce local opposition.

Building On California’s Clean Energy Plans

Aurora’s modeling lines up with California’s existing clean energy roadmaps, showing that adding community-scale solar and storage would complement, not compete with, utility-scale renewables. In fact, these local projects could help reduce the need for costly new utility-scale solar and battery plants​.

Bottom Line: Community Solar & Storage Is A Win-Win

Community solar and storage offers California a rare opportunity: lower costs, cleaner air, stronger reliability, and more local control, all at the same time. As the state races to meet its climate and energy targets, this new study makes a compelling case that building clean energy closer to home could be one of the smartest moves California can make — for everyone. Get access to the full report, The value of Community Solar and Storage in CAISO, at the Aurora Energy Research website.