New analysis confirms that deploying community solar and storage across California would save billions, reduce emissions, and improve grid reliability.
Austin, TX (AURORA ENERGY RESEARCH)—Aurora Energy Research, a leading global provider of power market analytics, has released a new report, commissioned by the Coalition for Community Solar Access, finding that deploying 5.4 gigawatts (GW) of Community Solar and Storage projects across California would generate an estimated $6.5 billion in electricity system cost savings over the next 20 years, while also reducing the state’s reliance on fossil fuels and out-of-state power. The findings confirm this approach would save billions, reduce emissions, and improve grid reliability.
Community solar and storage allows households, businesses, and other energy users to subscribe to a shared local solar project with battery storage and receive credits on their electricity bills for the power it delivers, even if they can’t install solar on their own property.
According to the analysis, Community Solar and Storage can:
- Reduce electricity prices by $4.2 billion by offsetting gas-fired generation and easing transmission congestion
- Avoid $910 million in future transmission and distribution infrastructure costs
- Cut resource adequacy costs by $4.6 billion, thanks to batteries discharging during peak demand periods
These substantial savings more than offset the estimated $3.2 billion in additional capital costs of building community-scale projects compared to traditional utility projects. Importantly, the economic benefits extend beyond project subscribers, as all Californians share the $6.5 billion net savings through lower system-wide costs and increased grid resilience.
Beyond economics, the report highlights environmental and reliability gains. By building local solar and storage, California could:
- Reduce reliance on net imports by 13%
- Cut in-state gas generation by 2.5%
- Lower carbon emissions by 1.8%
Community Solar and Storage is not only cost effective for Californians but is also a key tool in California’s strategy to build a more reliable energy future.
George Prassas, Head of USA West at Aurora Energy Research, commented:
“Community Solar represents a meaningful step in addressing the energy trilemma in California. Our analysis shows it can deliver lower costs, greater grid reliability and improved environmental outcomes for consumers statewide.”
Derek Chernow, Western Regional Director at the Coalition for Community Solar Access, added:
“This report confirms what we’ve seen in community solar markets nationwide. When paired with storage, local solar is one of the most cost-effective tools we have—it lowers energy costs for everyone on the grid while helping California improve reliability and reduce emissions, without requiring new transmission lines or taxpayer spending.”
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Sarah Hrovat, Media Relations Specialist, NORAM
sarah.hrovat@auroraer.com
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Established in 2013, Aurora Energy Research is a leading global provider of power market forecasting and analytics for critical investment and financing decisions. Headquartered in Oxford, England, we operate out of 16 offices worldwide covering Europe, North & South America, Asia, and Australia.
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