California solar influx causes negative wholesale rates

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. 

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 fourth PV CellTech conference dedicated to solar manufacturing in the USA. From polysilicon, wafers, ingots, cells and modules, to critical component suppliers including glass and frames, the event connects every stage of the value chain under one roof. PV CellTech USA also brings together investors, innovators, manufacturers and industry stakeholders to collaborate and strengthen domestic solar manufacturing across the United States.

Read Next

Premium
August 14, 2026
PV Talk: 'There’s a lot of good news here,' Hasan Nazar, head of policy at Crux, tells PV Tech Premium of the US solar policy landscape.
August 14, 2026
IPP Recurrent Energy has secured US$695 million in financing to support a 330MW solar PV project in California.
August 14, 2026
Mainstream Renewable Power’s 50MW C&I Ilikwa PV Facility in South Africa’s Free State province has reached commercial operation.
August 14, 2026
T1 Energy reported US$250.1 million in Q2 2026 sales as construction of its 2.1GW G2_Austin solar cell factory progressed.
August 14, 2026
Foreign Entity of Concern rules create a multitude of new risks for US solar developers, some less visible than others. Intertek CEA’s Jordan Wilson explores the key steps towards minimising FEOC exposure in PV module purchase agreements.
August 13, 2026
Comstock has advanced its industry-scale PV recycling line, while Florida-based OnePlanet has launched its 'PRISM' system to recover valuable materials from end-of-life solar modules.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye