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

February 20, 2026
NTPC has commissioned 165MW of solar capacity at its 1.25GW Khavda-II solar project in Gujarat.
February 20, 2026
Microsoft met all of its electricity demand with renewables in 2025 and has said it will continue to do so through 2030.  
Premium
February 20, 2026
In the last two weeks, both Shoals and Voltage have declared victory in an eBOS patent infringement case, following a ruling from the US ITC.
February 20, 2026
Origis Energy has commissioned three 145MW Swift Air solar facilities in Ector County, Texas, to supply power to Occidental’s operations in West Texas. 
February 19, 2026
Israel-headquartered inverter producer SolarEdge has reported revenue of US$1.1 billion in 2025, while reducing its net loss from the previous year.
February 19, 2026
German solar wafer manufacturer NexWafe and US-based cell producer Talon PV have signed a wafer supply agreement in the US.

Upcoming Events

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
Solar Media Events
November 3, 2026
Málaga, Spain