California passes new laws to integrate distributed energy resources into power grid
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Governor Gavin Newsom signed SB 905 and SB 913 into law to expand the role of distributed energy resources (DERs) in California's power grid.
These laws aim to address the state's energy affordability crisis by allowing technologies like home batteries and electric vehicles to participate more effectively in the wholesale market. The legislation sets a deadline of June 2028 for the California Public Utilities Commission (CPUC) to establish a framework where DER aggregations can qualify as resource adequacy capacity.
This capacity helps ensure the state has enough power to meet demand. The law also prevents owners of these devices from receiving double compensation if they are already enrolled in net energy metering or net billing programs. SB 905 requires regulated utilities to collect and report data to improve grid utilization. It also tasks the CPUC with creating performance-based metrics for major utilities and exploring alternative ways to finance capital investments in generation, transmission, and distribution.
Advocates say these changes will allow customers to enroll multiple devices behind a single meter in virtual power plant programs. This shift enables different companies to manage different resources for the same customer, such as one company managing a smart thermostat while another manages a home battery. The laws also allow for data collection at the individual device level rather than at the smart meter, which reduces barriers for customers who want to participate in multiple programs.
