7 Ways California Can Make Energy More Affordable for Everyone, Including Solar Households

California’s energy landscape faces an unprecedented challenge: electricity rates have soared to 32.41¢/kWh in 2025, the highest in the nation, while solar customers grapple with reduced net metering credits under NEM 3.0. For solar installers and EPCs across the Golden State, understanding practical solutions that balance cost reduction with solar customer protection isn’t just good policy—it’s essential for business growth and customer retention. California can cut energy bills without hurting solar customers through strategic policy reforms, innovative rate structures, and enhanced grid efficiency measures that create new opportunities for solar EPCs.

1. Implement Time-of-Use Rate Optimization for Solar Benefits

Time-of-use (TOU) rates represent a significant opportunity to reduce energy costs while maximizing solar value. The increasing adoption of AI is driving a significant uptick in energy consumption, creating peak demand periods that solar installations can help address.

For solar installers and EPCs, TOU optimization means designing systems that pair solar generation with battery storage to capture higher-value export rates during evening hours. These changes further reinforce the value of battery storage since that is the only way to capture the higher export rates outside of peak solar-producing hours.

Advanced rate structures can include dynamic pricing that rewards distributed generation during peak demand periods. Solar EPCs should focus on educating customers about these opportunities and designing systems that take advantage of beneficial rate structures.

2. Expand Community Solar Programs to Reduce Costs

Community solar programs offer a powerful solution for reducing energy bills without impacting existing solar customers. If you’re a customer of one of the three Investor Owned Utilities (IOUs)–Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E)–you can benefit from net billing programs.

For solar EPCs, community solar represents a significant growth opportunity. These projects allow customers who can’t install rooftop systems—renters, those with shaded roofs, or residents of multi-family buildings—to access solar savings. This expands the potential customer base while providing economies of scale that can reduce overall energy costs.

Solar installers should consider partnerships with community solar developers to capture this growing market segment while supporting initiatives that benefit all participants.

3. Modernize Grid Infrastructure to Lower Transmission Costs

CALSSA’s findings show that 90% of T&D rate increases are due to rising utility spending, not solar adoption. This data reveals that infrastructure modernization should be the focus for reducing transmission and distribution costs.

Grid modernization creates opportunities for solar EPCs to offer advanced monitoring and grid-interactive systems. Smart inverters, microgrids, and enhanced storage solutions can improve grid stability while reducing infrastructure strain. These technologies help cut energy bills by optimizing grid operations and reducing the need for expensive peaker plants.

Solar installers can position themselves as partners in grid modernization by offering systems that provide grid services, including voltage regulation, frequency response, and demand response capabilities that utilities value highly.

4. Enhance Energy Efficiency Incentives with Solar Installations

California can significantly reduce energy bills by coupling enhanced energy efficiency programs with solar installations. While the California Solar Mandate doesn’t require solar batteries, adding a battery storage system like the Tesla Powerwall or Enphase IQ battery can reduce the size of your solar system by as much as 25%.

For solar EPCs, this approach creates additional revenue streams through comprehensive energy solutions. Instead of just installing panels, companies can offer whole-home energy efficiency upgrades, smart thermostats, LED lighting, and weatherization services alongside solar systems.

This integrated approach helps customers maximize their energy savings while reducing the overall system size needed to meet their energy needs, creating a win-win that protects solar economics for existing customers.

5. Streamline Solar Permitting to Reduce Installation Costs

California leads the nation in streamlined solar panel permitting efforts through initiatives like the Solar Permitting Efficiency Act (AB 2188), which has standardized procedures, reduced administrative hurdles, and expedited reviews.

For solar installers and EPCs, streamlined permitting directly impacts project costs and timelines. Faster approvals mean lower soft costs, which can be passed on to customers through reduced system prices. This helps cut energy bills by making solar more affordable for new customers while protecting existing investments.

The state can further expand these efforts by standardizing interconnection procedures across all utilities and implementing digital permitting platforms that reduce processing times from weeks to days.

6. Support Storage Integration to Maximize Grid Benefits

Battery storage integration offers one of the most promising paths for cutting energy bills without hurting solar customers. Energy storage deployment in California is rapidly accelerating and procurement has increased by 1,250% since 2019. California is leading deployment with over 13,000 MW of storage capacity across nearly 155,000 sites. By 2045, the state expects to reach 52,000 MW of storage.

For solar EPCs, storage represents a high-growth market opportunity. Storage systems help cut energy bills by reducing peak demand charges, providing backup power during outages, and enabling participation in demand response programs. Solar installers should focus on educating customers about these benefits and designing integrated solar-plus-storage solutions that maximize system performance.

7. Preserve Existing Solar Contracts While Optimizing New Policies

California can protect existing solar customers while implementing new cost-reduction measures. Following public pushback, the committee amended Calderon’s bill, stripping out the provision that would have booted people off of net energy metering more quickly.

This approach maintains market confidence while allowing for policy optimization. Solar EPCs benefit from this stability because it protects their customer relationships and project financing assumptions. The bill will impact new solar customers who buy panels after Dec. 31, 2025, and residential customers who lease panels after 2027.

For solar installers, this means focusing on customer education about changing policies while emphasizing the long-term value of solar investments. Companies should also diversify their offerings to include energy efficiency, storage, and grid services that provide additional value under evolving rate structures.

Business Opportunities in California’s Evolving Solar Market

These strategies create significant opportunities for solar installers and EPCs. The solar EPC market size exceeded USD 407.6 billion in 2024 and is estimated to grow at a CAGR of 8.1% from 2025 to 2034, driven by rising demand for sustainable energy solutions.

California’s continued leadership in solar deployment means sustained opportunities for growth. California has over 49,000 MW of installed capacity and solar supplies more than 31 percent of California’s electricity today, but it must play a bigger role if the state is to reach climate and energy goals.

Smart solar EPCs will position themselves as comprehensive energy solution providers, offering integrated packages that include solar, storage, energy efficiency, and grid services. This approach helps customers maximize their savings while creating multiple revenue streams for contractors.

Conclusion: Partner with Energyscape Renewables for Solar Success

California can achieve reduced energy bills without hurting solar customers through these seven strategic approaches. As the solar industry evolves, partnering with experienced providers becomes crucial for success.

Energyscape Renewables offers comprehensive solar EPC services designed to help installers navigate California’s complex regulatory environment while maximizing project value. Their expertise ensures projects meet state requirements while delivering optimal performance.

For cutting-edge solar solutions, explore Sunscape Solar, where advanced technology meets practical application for California’s renewable energy future. With the right strategies and partnerships, solar EPCs can thrive while helping California achieve its clean energy goals.