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Utility-Scale Solar Overtakes Natural Gas in California Power Generation, EIA Says

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Utility-scale solar generation exceeded natural gas-fired electricity generation in the California Independent System Operator system during the first five months of 2026, marking a significant shift in the region's power mix, the US Energy Information Administration said in a Tuesday note.

Solar electricity generation in CAISO rose 21% compared with the same period in 2024, while natural gas generation fell 60%.

Utility-scale solar generated more electricity than natural gas on a daily basis on 82% of days between January and May 2026, up sharply from 21% of days during the same period in both 2024 and 2025.

The change reflects substantial growth in renewable energy and storage capacity across the CAISO system.

According to the Preliminary Monthly Electric Generator Inventory, utility-scale solar capacity increased 19% from April 2024 to April 2026, reaching 25 gigawatts.

Net battery storage capacity expanded 79% over the same period to 16 GW. By contrast, natural gas generation capacity remained essentially unchanged at 29 GW. Overall net generating capacity increased 14%, or 11 GW.

Battery storage systems, many of which are co-located with solar facilities, have played an increasingly important role in supporting grid operations.

These systems store excess solar generation during midday hours and discharge electricity at night. Battery storage discharges during the first five months of 2026 were three times higher than in the same period of 2024.

Despite increased output from solar and batteries and a 7% rise in electricity demand, CAISO's net electricity generation declined 19% over the period as imports from neighboring power systems doubled.

The increase in imports was driven by the availability of lower-cost electricity from outside California.

Hydroelectric imports from the Pacific Northwest rose as drought conditions eased in the region. CAISO also began receiving power in April from the newly commissioned SunZia wind project in New Mexico.

Generator retirements also contributed to changes in the system's resource mix. Between May 2024 and May 2025, CAISO retired 555 megawatts of generating capacity, including a 300-MW battery storage facility that was damaged by a fire in January 2025.

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