California is leading the transition to the era of electrification – from EVs to autonomous cars and AI data centers – anything that can move away from costly other sources of energy to fully electric is going electric. Getting to that future depends on one thing: reliable, efficient and affordable energy.

California has spent the last decade leading the country in renewable energy development. We draw more power from the sun than any other state and we’ve built more energy storage than all other 49 states combined. We’ve led reshaping the future of power in this country – and now we’re at risk of walking away from it.

At the very moment we should be accelerating our transition, Congress is debating whether to roll back the Inflation Reduction Act (IRA) and the clean energy tax credits it provides. That would be nothing short of squandering the progress we’ve already made, with an outsized impact here in California, where we’ve invested billions of public and private dollars into building the future of energy.

The importance of battery storage

Battery storage is the critical piece of infrastructure that makes intermittent power sources like solar and wind viable at scale. And the IRA’s incentives for energy storage are what make it financially viable in the short term, unlocking greater long-term value. Without those incentives, most large-scale battery projects would stall. We can’t afford that. Not when electricity demand is surging for the first time in generations.

The U.S. will need 200GW of peak capacity over the next decade to keep up with demand. On a typical day in the U.S., the electric grid operates at 40% to 60% of its total generation capacity.

In the summer, that climbs to around 75–80%. That leaves a lot of wasted energy on the table and means we have enormous headroom in the infrastructure we’ve already built – but it’s not evenly distributed across time. The real challenge is peak demand, especially between 4 and 7 p.m. on the hottest days of the year. That’s when the system comes under stress. That’s when the risk of rolling blackouts starts. 

The solution to getting more energy isn’t going to come from doing things the way we used to. General Electric is backlogged for years on natural gas turbines. Nuclear can take over a decade to come online. The fastest, smartest way to increase energy reliability is to store the excess power we already generate and use it when the grid needs it most. That means batteries. That means maximizing the grid we’ve already built. And that’s why we must keep in place the federal policies that are driving energy storage forward.

Most urgent in the Golden State

Nowhere is this more urgent than in California. California is facing its highest energy demand growth since World War II. Between EV adoption, new manufacturing and the energy-hungry rise of AI data centers, the demand curve is steep. Electricity demand is projected to grow 20% by 2030 – the first significant growth in decades.

This dynamic directly impacts California residents who in addition to facing the most power outages are also paying for the widest time-of-use utility rate spreads in the country – meaning Californians pay a steep premium for electricity during peak hours. Battery storage flattens that curve, protects against blackouts, and gives homeowners control. For consumers, it’s simple: batteries help keep the lights on and bills low.

But the value of distributed energy goes far beyond cost. California is also facing a new era of risk. Wildfires, high winds and extreme heat are becoming more frequent and more destructive. These events don’t just threaten the grid –  they threaten lives. Distributed energy, including solar paired with storage, gives households and communities the ability to stay powered during disaster. It creates resilience at the edge of the grid, when centralized systems fail. In an era of climate-driven emergencies, energy independence isn’t a luxury –  it’s a necessity.

The IRA is what makes that growth viable. Rolling it back would drive up energy costs, slow installations and strand investment in local businesses. It would gut the electrification industry that’s creating high-quality jobs, reshoring manufacturing, and keeping the lights on when the grid falters.

Let’s not pull the plug on a solution that’s already working. Let’s keep investing in the renewable energy future Californians are already building and continue leading the country in creating a solar and battery
powered industry here at home.

Vinnie Campo is the chief executive and co-founder of Haven Energy. He was previously U.S. general manager at Bulb Energy, held leadership roles at Uber and began his career as an energy trader and analyst.