Gas is out, solar is in: Here's what's driving California's solar surge

New year, new clean energy sources in California. 

It’s still early into 2025, yet solar is already meeting nearly 100% of the state’s grid demand. California is also experiencing a rise in wind electricity generation and battery output and a decline in fossil fuel electricity use. All this is according to new data from Stanford University Professor Mark Jacobson.

"California's progress is outstanding,” Jacobson told EnergySage.

EnergySage spoke with Jacobson, a civil and environmental engineering professor who has been tracking clean electricity generation trends for years. He’s especially impressed with the clean energy surge so far this year; on Wednesday, Jacobson reported that in California;

• Solar generation is up 33.5% year over year

• Wind generation is up 11.4%

• Total clean energy generation is up 16.8%

• Battery output is up 79% (and up 194% compared to 2023)

• Natural gas use is down 28.4%

Let’s take a closer look at some of the data: solar alone meets nearly 100% of the demand, which is especially impressive in winter when we have fewer daylight hours and a lower sun angle.

The good news doesn’t stop there. According to Jacobson’s data, California’s wind, water, and solar (WWS) electricity generation exceeded 100% of grid demand for over half of the days we’ve had in 2025, with February 26 marking a 12-day streak.

“Not only has the state achieved 100% WWS renewable electricity generation on its main grid for more days during the first two months of 2025 than during 2024—28 days vs.5 days—but it may be possible for the state to achieve 250-300 days of 100% WWS this year,” Jacobson told EnergySage.

Jacobson explained that the 100% WWS renewable energy generation has hit an average of almost two hours a day so far in 2025—that’s up from roughly 17 minutes for the same period in 2024.

“Given that California has such an enormous backlog of solar and battery projects in its transmission interconnection queue, it may even be possible for the state to be 100% WWS renewable for every hour of the day within five years,” Jacobson said. “This would be an amazing accomplishment for the world's fifth-largest economy."

Jacobson told EnergySage that fossil gas use is also expected to continue declining through 2025.

California has long been known as a champion of clean energy, often ranked as the first or second-place state in terms of the amount of solar installed, according to the Solar Energy Industries Association (SEIA). While we can’t say for certain why there’s been an uptick in 2025 compared to the same period in 2024, we can share some additional data that helps provide a clearer picture.

Homeowners want lower electricity prices

There have been concerns that electrical grids powered by renewables would lead to more expensive electricity, but Jacobson and his team at Stanford released a study last December in an effort to disprove this idea.

The study revealed that 10 of 11 U.S. states with the highest renewable energy usage have among the lowest electricity prices, proving those concerns are largely unfounded. Although California has some of the highest electricity costs in the country, the study found wholesale energy prices decreased significantly in 2024 when more solar, wind, and battery storage was added across the state.

According to the researchers, California’s high electricity prices are linked to the “high cost of fossil gas” and the prevalence of wildfires.

“Utilities have passed on to customers the cost of wildfires caused by transmission line sparks, the cost of undergrounding transmission lines to reduce such fires, and other wildfire-related mitigation costs,” they wrote.

For example, the average Pacific Gas & Electric (PG&E) customer’s bill is expected to rise 32% by 2026. The rate hikes started after the company filed for bankruptcy following $23 billion in payouts as a result of the deadly Camp fire in Northern California in 2018.

It’s also worth noting that the cost of going solar in California has been decreasing, encouraging more homeowners to make the switch: the average quoted price for a solar installation in California is currently $2.30 per watt according to EnergySage data—about 6% less than the first half of 2024. 

Clean energy helps stabilize the grid 

The Stanford study should also help lessen concerns that a grid powered by renewable energy would be more unreliable: the report found that California’s main grid achieved 100% renewable power for up to 10 hours per day across at least 132 days in 2024, without any grid failures. This data, coupled with this month’s report from Jacobson that renewables have met demand so far in 2025, shows that clean energy can provide increased grid stability.

Battery storage provides energy resiliency

California is known to have frequent power outages, which, in addition to the rollback of its previously generous net metering (NEM) policy, has led to a massive battery storage expansion at both a utility and residential scale.

The state saw a 30% increase in battery storage capacity between April and October 2024. Plus, Jacobson's data reveals a 79% increase in battery output compared to 2024 and a 194% increase compared to 2023.

The NEM 3 policy change in 2023 significantly increased homeowner interest in battery storage. Early 2025 data from EnergySage shows that about 87% of California homeowners are requesting batteries with their solar quotes.

It’s clear that adding energy storage has increased the value of going solar for Californians. Homeowners primarily want storage to maximize savings on complex utility rates (38%), increase home consumption of solar power (22%), and have emergency backup power (18%), according to EnergySage data.