Introduction
California’s remarkable renewable boom is reshaping the state and western energy landscape. Nearly 7,000 megawatts (MW) of new clean energy capacity were installed in 2024 alone, making it the largest single-year increase of green power in the state’s history. This new figure broke the previous records set in both 2022 and 2023, marking a third consecutive year of unprecedented clean energy growth1. Not surprising for the world’s fourth-largest economy. In 2025, California added approximately 5,700 MW nameplate capacity.
This rapid pace is good news for the climate, competition and consumers but raises key questions: Can the grid keep up? Is it causing retail rates to rise? Does it present a challenge or an opportunity for electric consumers in California and the West?
Renewable Power: The Debate
There is a growing debate over whether California is overproducing renewable energy, forcing the California Independent System Operator (CAISO) to either curtail renewable generation or export excess electricity to neighboring states at a loss. Critics speculate that the rapid growth in renewable production is driving up consumer2 retail electricity rates. These skeptics urge state policymakers to reconsider the push toward 100%3 clean energy, arguing that the goal is either infeasible or prohibitively expensive. The reality, however, is far more complex, and renewables may be receiving disproportionate blame for challenges driven by multiple factors