California Passes Legislation to Support Solar & Lower Energy Costs – CleanTechnica

---

Support CleanTechnica’s work through a Substack subscription or on Stripe.

---

California is doing what it has been doing for years — it’s leading on clean energy again. Well, it is leading in one way and it is catching up in another way. The California legislature passed a couple of bills on the last day of the 2025 legislative session this week that further support solar energy and a connected clean energy grid. Naturally, these are also expected to lower energy costs for Californians.

The bills are Assembly Bill 825 and Senate Bill 302. “AB 825 begins the process of establishing a regional electricity partnership across the West. Senate Bill 302 aligns California’s tax code with provisions in the Inflation Reduction Act to unlock expiring federal tax benefits for renewable projects in the state,” the Solar Energy Industries Association (SEIA) writes.

A more integrated grid has been a key recommendation of renewable energy advocates for years, and it seems California is now looking to bring this about in the Western United States. What that will mean in practice, we’ll see, but getting to work focusing on this is a critical step, and the California legislature is putting the ball into motion.

On the second bill, note that this is a case of California catching up with the rest of the country — and why was it behind in the first place? The bill exempts solar developers in California from paying taxes on Inflation Reduction Act benefits. “The vast majority of states do not tax such benefits,” Solar Power World writes. But, hey, better late than never — especially with the IRA getting hollowed out by Republicans and these solar incentives expiring soon.

“We applaud California legislators for passing Assembly Bill 825 and Senate Bill 302, two commonsense ways to help address energy affordability in the state. We urge Governor Newsom to sign these bills, which come amid relentless attacks and red tape from Washington that are hindering solar development and raising Californians’ electric bills,” Stephanie Doyle, California state director for the Solar Energy Industries Association (SEIA), commented this week.

“AB 825 will spur solar development by paving the way for a regional transmission organization across the Western states — and ultimately help lower electricity bills for Californians. The regionalization plan means California’s solar and storage resources will have a broader market, which will lead to more efficient energy production and distribution, and a more reliable grid. We appreciate Governor Newsom’s vocal support for the bill.

“SB 302 will keep energy project costs down by allowing California energy developers to realize the full value of federal tax incentives.

“State leadership on clean energy policy is more important now than ever. The solar and storage industry will continue to work with state leaders to make sure that all Californians can access the clean, affordable energy they’re demanding.”

Yes, indeed — unfortunately, since the people running the United States want to go backward, and want to promote dirty energy sources that harm human health and the climate but help their billionaire buddies, we need states to do everything they can to lead on clean energy. California has led the way for years, and it’s good to see more progress being pushed forward this week.