Data Source: California Energy Commission.
Analysis by CEC Economics
Highlight
- Electricity generation from RPS-eligible renewables increased by 10.8% or 11,209 gigawatt-hours (GWh) from 2023 to 2024, outpacing the previous year’s tepid growth and surpassing its previous record from 2016 to 2017 (+10,723 GWh or 14.5%).76 Solar generation made up the lion’s share of the increase, rising 23.8% compared to 2023 (+11,414 GWh), reversing its previous decrease in generation from 2022 to 2023 (-1,081 GWh). Electricity generation from wind increased 1,703 GWh or 5.4% from 2023 to 2024. For the first time, solar made up over half (51.6%) of California’s RPS-eligible renewable generation. After years of stagnating generation levels, wind generation rose 1,703 GWh, or 5.4% to 33,102 GWh. Solar and wind are the largest renewable sources, making up 21.3% and 11.9%, respectively, of the state’s total power mix.
76 Non-RPS eligible sources include fossil energy, coal, natural gas, nuclear, other unspecific sources and large hydro.
Opportunity
- In September 2025, Governor Newsom signed Assembly Bill 825, which enables California to join the West in a regional electricity market, enabling California to share clean energy resources with neighbors across the West.77 Recent analysis shows California could save more than $1 billion annually and reduce in-state gas generation by 31% by participating in a regional day-ahead market with the broader West.78 Additionally, Governor Newsom signed Senate Bill 302 which reduces the cost of building renewables by aligning the California tax code with federal law to eliminate the state tax on federal tax credits for clean energy development.79
77 More information about AB 825 can be viewed at: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB825
78 “Connecting the West: How California Can Strengthen the Grid.” NRDC. September 11, 2025. Available at: https://www.nrdc.org/bio/kelsie-gomanie/connecting-west-how-california-can-strengthen-grid
79 More information about SB 302 can be viewed at: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB302
Challenge
- Generation for all other RPS-eligible renewables fell in 2024. Biomass generation fell 396 GWh or 6.8% compared to 2023, representing the lowest level on record, despite similar installed capacity. Similarly, geothermal generation fell 764 GWh or 5.6% compared to 2023 with the same installed capacity (2,715 MW). Small hydro fell 748 GWh or 15.0%, although its generation level (4,240 GWh) is still higher than 2020 to 2022 levels. In-state electricity generation plus imports from these sources, which totaled 22,437 GWh in 2024, were collectively 7.8% lower than the total in 2023 (24,345 GWh).
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