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Maguire: California's solar-battery combo is a game changer

California's rapidly expanding solar farms and batteries systems, although overshadowed by the booming demand for data centers and the U.S. Government's slashing of clean energy policies may still be 2025's biggest power story.

California's massive solar farms have produced more electricity in 2025 than the fossil fuel power stations in the state for an unprecedented period of time. This is a milestone for the energy transition in the United States.

The swell of solar-powered energy in California has led to the largest drop in fossil-fuel-fired electricity output year-over-year.

California's solar- and battery-system output has risen dramatically in recent years. This will serve as a blueprint for other states, even if federal legislators scrape support for clean energy.

CLEAN PUSH

Ember data show that California's solar farm electricity supply during January-July jumped 15% compared to the same months of 2024, to a new record 54.709 gigawatt-hours (GWh).

According to LSEG's data, the increase in solar energy supplies of about 7,200 GWh was accompanied by a 75% increase in California's storage capacity. This allowed utilities to reduce fossil fuel-fired electricity generation by 21%.

Solar farms contributed a record amount of electricity to California during the period January-July, with a 39% share, up from the 33% in 2024.

As a comparison, Texas, the state with the second largest solar footprint in the U.S.A., has secured 10,4% of its electricity this year from solar farms.

The solar portion of California's energy mix has increased, while the fossil fuels share has fallen steadily and reached a new low of 26% in 2025.

This compares with a national fossil fuel share so far of 55% in 2025. It cements California as the leader in clean electricity deployment.

CRITICAL MASS

California utilities are rapidly increasing the capacity of battery storage alongside solar power production since 2022 so that California's abundant solar energy can be used to its maximum effect.

Solar output peaked in the middle of the afternoon, just as the state's total power consumption was nearing its lowest point.

According to the data portal Cleanview, California utilities are now able to store excess solar power and use it at peak demand.

FOSSIL FALLS

California's growing solar and battery networks are enabling utilities to reduce their reliance on fossil fuels at a record pace.

California has historically used fossil fuels at their highest levels during summer, when air conditioners are most power hungry.

California utilities, however, have been able, thanks to the rapidly increasing solar and battery capacities, to reduce fossil fuel deployment, even during periods of peak demand.

According to Ember, the total electricity generated from fossil fuels in July 2025 will be just 36,416GWh.

This total was a 40% drop from July 2024 and 36% lower than the average July from 2019 to 2024.

This steep decline in fossil fuel generation also had a commensurate effect on emissions. In July 2025, they were 2.1 millions metric tons less CO2 than in July 20,24 and the lowest ever for this month.

Priced in?

After years of retooling California's energy system to favour clean energy over fossil-fuels, its electricity costs have begun to reflect the impact of solar power in the state's generation mix.

California's electricity prices are still higher than the national average but have risen less this year. According to the U.S. Energy Information Administration, the state has seen a 1% increase compared to a national 3.3% increase.

The price-depressing effect of California's large share of solar energy in its generation system will act as a drag for overall electricity costs even though power bills elsewhere are expected to continue to rise.

California is also better placed than other states to deploy large-scale solar farms due to its high levels of solar radiation. Its vast desert areas are sparsely populated and have a lot of space.

However, several states in the South and Southwest of the United States can also expect to reduce their fossil fuel dependence if they install large battery and solar systems.

State utilities who can expand their solar and batteries systems will see quick returns.

According to LSEG's estimates, benchmark U.S. Natural Gas prices are 37% higher this year than they will be in 2024. States that reduce their use of natural gases can expect to save a lot on fossil fuel purchases.

California is the only state that can compete with its solar and battery network. But those who want to reduce their dependence on fossil fuels and increase the production of clean, domestic power should look at the Golden State for inspiration.

These are the opinions of the columnist, an author for.

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(source: Reuters)