Analysis by CEC Economics
Challenges
- Despite having some of the most comprehensive energy efficiency standards, programs, and policies in the nation, California has not been a top performer in terms of annual incremental electricity savings from energy efficiency.126 In 2022, electricity savings from energy efficiency totaled 2.9 million megawatt-hours, which is 1.17% of total electricity consumption, putting California in 13th place. By comparison, New Jersey is the top saver (1.76%), followed closely by Vermont (1.75%) and Illinois (1.74%). However, California’s savings rate is about twice of the rest of the U.S. (0.58%).
- California’s savings rate has fallen compared to 2021 (1.23%) and 2017, when it peaked at 3.6 million MWh incremental energy savings or 1.39% of total electricity consumption. Electricity savings from energy efficiency have also declined across the United States.
126 Energy efficiency measures are efficient devices or processes that exceed current efficiency standards and generate long-term, continuous reductions in electricity demand. Examples include installing a more efficient lightbulb or improving the insulation in a home.
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