California solar influx causes negative wholesale rates

April 10, 2017
Facebook
Twitter
LinkedIn
Reddit
Email
From the hours of 11am to 2pm on 11 March, the total solar share of gross demand exceeded 50%, according to the EIA. Source: Flickr/ lindalino

On 11 March, for the first time ever, over 50% of California’s power needs were met with solar power, according to the US Energy Information Administration (EIA).

From the hours of 11am to 2pm, “the total solar share of gross demand probably exceeded 50%,” the EIA said – noting that it was a combination of residential and commercial rooftop generation that constituted 4 million kWh of electricity during peak time.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

During the same time window, wholesale electric rates dipped below zero, compared to the average price of between US$14-$45MWh in March between 2013 and 2015. This is because of a net market oversupply; as many forms of power generation cannot be easily shut down when solar generation peaks.

California has seen an almost 50% growth rate in the amount of utility-scale PV installed last year, contributing to the negative power prices. Indeed, the Golden State has almost half of all the solar power in the US. As of December 2016, California’s independent system operator CAISO reported 14GW of distributed solar, rising from less than 1GW in 2007.

The negative wholesale rates did not mean that Californians owed nothing for their power as it is based on averages and not single days. However, it does mean that Californian utilities and energy companies will need to rethink what the integration of such a high level of renewable energy means for the state’s electricity delivery and pricing.

In fact, the situation already has led to the curtailment of solar production during peak hours, with thousands of MWh of potential energy getting switched off, even as other non-renewable plants continue to produce. The introduction of grid-energy storage will be required to effectively supply 24-hour demand from renewable sources. 

16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2028 and beyond.
13 October 2026
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 13-14 October 2026 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023, 2024 and 2025 were a sell out success and 2026 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

Premium
February 11, 2026
PV Talk: Wood Mackenzie’s Yana Hryshko argues that MENA is emerging as a solar manufacturing hub, driven, in part, by Chinese partnerships.
February 11, 2026
The National Laboratory of the Rockies (NLR), previously known as the National Renewable Energy Lab, has laid off 134 employees.
February 11, 2026
India’s MNREA has released the fourth revision of its ALMM II for solar cells, increasing the total enlisted manufacturing capacity to 26GW. 
February 10, 2026
Energy platform Revera Energy has completed an expanded US$150 million credit facility for its UK and Australian portfolio.
February 10, 2026
Rewa Ultra Mega Solar Limited (RUMSL) has extended a Letter of Award (LOA) to Ceigall India and ACME Solar to develop 220MW solar-plus-storage in Morena, Madhya Pradesh. 
February 10, 2026
Boviet Solar has affirmed its commitment to US solar PV manufacturing despite plans by its parent company to divest its ownership.

Upcoming Events

Upcoming Webinars
February 18, 2026
9am PST / 5pm GMT
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
October 13, 2026
San Francisco Bay Area, USA