SACRAMENTO, Calif. - California lawmakers have moved a slate of landmark clean energy legislation through fiscal committees, advancing bills that would dramatically expand access to community solar, legalize plug-in balcony solar systems, and establish a permanent framework for virtual power plants (VPPs). The flurry of legislative activity comes as electricity rates in the state have more than doubled over the past decade, intensifying pressure on consumers and policymakers alike to find affordable, distributed solutions to the state's energy challenges.
Community Solar Revival: AB 1813
Assembly Bill 1813, which was proposed by Assemblymember Christopher Ward, is a significant part of the legislation. The bill aims at bringing back community solar program which had been stalled in California for years. The bill requires the officers to use the California Public Utilities Commission (CPUC) Avoided Cost Calculator, which was devised almost 10 years ago but has not worked properly in community solar evaluation.
Community solar allows renters, people living in flats, and home owners who cannot place rooftop systems to buy shares of projects based in different places. According to AB 1813, it is permissible to combine solar energy with battery storage systems so the electricity is used at peak times.
The economic stakes are substantial. Aurora Energy Research projects that deploying 5.4 gigawatts of community solar and storage over 20 years under this model could generate $6.5 billion in systemwide electricity cost savings. The bill has garnered support from Community Choice Aggregators including San Diego Community Power and Peninsula Clean Energy, which argue the valuation model effectively safeguards non-subscribers while lowering overall system rates. The bill now advances to the Senate floor for a final vote.
Balcony Solar: SB 868 - 'Like Plugging in a Toaster'
Perhaps the most novel measure advancing through the legislature is Senate Bill 868, introduced by Senator Scott Wiener, which would legalize plug-in balcony solar systems. The bill allows residents to connect systems with a maximum output of 1,200 watts directly to standard household outlets, bypassing traditional utility interconnection processes and local permitting requirements.
For millions of Californians who rent or live in multi-unit buildings, rooftop solar has never been a realistic option. Balcony solar-compact, portable panels already common in Germany and now legal in Utah and nine other states-offers a far cheaper entry point. One Oakland resident told the Los Angeles Times he paid about $680 for two 180-watt panels and described the experience simply: "It's like plugging in a toaster, there is nothing complex about it at all". He reported that the system has eliminated his need to draw power from the grid around midday.
According to the Environmental Working Group's report, even one 400-watt unit may be able to provide up to 14% of the energy required by an average apartment, saving an estimated $250 a year in energy expenses. The proposal would also allow renters to add these balcony solar systems without getting permission from their landlords first.
The legislation has faced opposition from utilities concerned about grid reliability and cost shifts to non-participating customers. However, Southern California Edison dropped its opposition in June after revisions allowed utilities to confirm panel certification. The bill is moving toward a vote on the Assembly floor.
Virtual Power Plants: SB 905 and SB 913
Two complementary bills authored by Senator Josh Becker have also cleared the Assembly Appropriations Committee, aiming to build out California's virtual power plant program.
Senate Bill 913 would mandate the CPUC establish a framework for compensating behind-the-meter battery storage systems when they export energy to the grid during periods of high demand. Currently, the state does not compensate customers for such exports. The bill aligns with a pending CAISO proposal allowing customer-sited batteries to qualify for Resource Adequacy based on their full export potential, rather than solely considering on-site load reduction. The California Solar and Storage Association (CALSSA) has noted that this change is critical, as it would ensure these resources are selected in the market only when available at lower costs than competing alternatives.
Senate Bill 905 takes a different approach, establishing a "grid utilization metric" to measure load factors on distribution circuits. This would identify areas where existing infrastructure can accommodate additional capacity without requiring expensive physical upgrades. CALSSA Executive Director Brad Heavner argues that expanding grid equipment solely for brief periods of high usage is wasteful, and that harnessing batteries and appliance controls during peak hours can optimize existing resources.
California's Demand Side Grid Support program-the state's existing VPP initiative-was recently extended through the end of 2026 and has already attracted participation from more than 1 gigawatt of distributed batteries. Passing SB 913 would create a permanent VPP program that does not require routine funding from the state budget. Both bills now head to the full Assembly for consideration.
Broader Context and Next Steps
The introduction of the legislation happens while California suffers from very high electricity rates. A significant point of interest is the attempt to pass Assembly Bill 1787 which aimed at requiring utilities to give access to data coming from smart meters; however, the bill failed because Senate Appropriations Committee members stopped it from moving forward even though 82% of voters were in favor of it.
The bills that have been approved by the Senate and Assembly are going for the final voting session in both branches of California's legislature before they can go to Governor Gavin Newsom's office for consideration. If the law is enacted, it will establish one of the biggest breakthroughs in expanding the opportunities to use renewable energy in the state's history.
