The Grid Is Getting Crowded Homes With Their Own Power Are Winning

The Grid Is Getting Crowded. Homes With Their Own Power Are Winning

California's electric grid is about to get a lot more crowded. The California Energy Commission now projects statewide electricity use could rise by more than 50 percent by 2045. Data centers are a big part of that story.

Who is crowding in
By the end of 2025, data center developers had requested about 15,000 megawatts of power from PG&E, with signed agreements reaching about 4,000 megawatts. Southern California Edison has nearly 5,000 megawatts of data center requests in its queue. Add electric vehicles, heat pumps and electric appliances, and demand is climbing from every direction. For scale, 4,000 megawatts of signed data center demand running year-round equals about 35 billion kilowatt-hours, or roughly 4.4 million homes' worth of electricity at 8,000 kilowatt-hours per home.

When crowding hurts most
The grid does not struggle all day. It struggles during the hottest late afternoons and evenings, roughly 4 to 9 p.m., when solar production drops and air conditioning peaks. That is also when time-of-use rates for SCE, SDG&E and PG&E customers are highest. Data centers run around the clock, so their demand stacks on top of those peak hours. The more crowded the grid gets, the more valuable it becomes to not depend on it during the most expensive part of the day.

Why homes with their own power come out ahead
Homes with solar and battery storage use their own solar energy during the day, store extra power in the battery, and draw from that battery during evening peak hours. Instead of buying the most expensive electricity of the day, they use power they already produced. When they produce more than they need, extra energy flows back to the grid and earns bill credits. And with California's new SB 913 directing regulators to value battery power sent to the grid during high demand, home batteries are gaining recognition as grid assets.

Which side of the meter are you on?
Every home will land on one side. On the buying side, you pay whatever the grid charges as demand rises. On the supply side, you produce, store and send power back for compensation. Some homeowners may not like the idea of supporting a grid that feeds data centers, but it beats competing with them for power.

What makes today's leases different
Solar leases have changed. Qualifying homeowners can now get solar and battery storage through third-party ownership programs without buying or financing equipment. Many agreements offer a rate designed to come in below what homeowners pay their utility, include maintenance and battery replacement for the term of the agreement, and can transfer to a new owner if the home is sold.

The takeaway
The grid is getting crowded, and the crowd is only growing. Homes that make and store their own power are positioned to save, with savings that can reach up to 40 percent compared with utility rates, depending on the home and program.

To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org/california_public_utility_commissions