Data Source: U.S. Energy Information Administration, Form EIA-861.
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.129 In 2023, electricity savings from energy efficiency totaled 2.86 million megawatt-hours, which is slightly lower than in 2022 (2.95 million MWh). This amounted to 1.19% of total electricity consumption, putting California in 12th place (historically, California has hovered around 9th to 13th place). Several Northeastern and Mid-Atlantic states performed better than California: Massachusetts (1.44%), New Jersey (1.54%), New York (1.26%), Rhode Island (1.54%), and Vermont (1.42%). However, California’s savings rate is about twice of the rest of the U.S. (0.59%).
- California’s savings rate remained below 2017 level, when it peaked at 3.58 million MWh incremental energy savings or 1.39% of total electricity consumption. After a significant drop in 2019, in which incremental savings totaled 2.69 million MWh, 2023 was the second-lowest year in incremental savings.
129 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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