March 10, 2025
Topic
California’s energy landscape has been evolving for the better part of a decade, with regional energy networks (RENs) playing a pivotal role in shaping its future. Launched in 2013 after a complex CPUC regulatory process, RENs began as pilot programs aimed at delivering energy retrofit solutions, while offering education and outreach, incentives, financing, and workforce training across the state. The Bay Area Regional Energy Network (BayREN) and the Southern California Regional Energy Network (SoCalREN) were among the first to pioneer this locally led approach to energy efficiency program administration.
Today, RENs are much more than experimental initiatives. They have become integral components of California’s energy strategy, providing energy efficiency programs that benefit our diverse local communities. RENs, under the guidance of local governments and authorized by the California Public Utilities Commission (CPUC), understand regional needs, serving as administrators for energy efficiency programs across California. Their ability to adapt and meet the unique challenges faced by hard-to-reach1 and underserved communities2 has cemented their role as invaluable contributors to California’s energy future.
In recent years, the reach of RENs has expanded significantly. BayREN and SoCalREN are joined by the Tri-County Regional Energy Network (3C-REN), Inland Regional Energy Network (I-REN), and the newest additions: the Central California Rural Regional Energy Network (CCR-REN), Northern Rural Energy Network, and the San Diego Regional Energy Network (SDREN). Collectively, these RENs now serve a vast majority of the state’s population, encompassing 94% of California’s residents.
Why RENs?
At their core, RENs provide a vital service by delivering energy efficiency programs tailored to the needs of their specific regions. They work where energy utility programs often fall short, filling the gaps left by large Investor-Owned Utility (IOU) programs.
What sets RENs apart is their ability to offer a holistic approach to energy efficiency that focuses on equity and ensuring that no one is left behind in the clean energy transition. RENs can leverage additional funding to enhance and complement other energy programs, bringing additional value to communities. Their localized approach allows them to deeply understand and address the unique needs of their jurisdictions. RENs also foster transparency and affordability by ensuring residents are informed about all available program offerings, allowing them to make the most of energy efficiency initiatives.
RENs are not only focused on reducing energy use but are also instrumental in driving economic benefits. Energy efficiency is the most cost-effective way to reduce electricity bills, and by implementing such programs, RENs help reduce energy demand, lower overall system costs, and create jobs in local communities. As California continues to experience growth in energy demand—driven by the electrification of transportation, data centers, and other sectors—RENs’ work becomes even more critical in developing the needed workforce, managing that load, and keeping energy affordable.
REN programs provide measurable benefits in affordability, economic growth, job creation, and greenhouse gas emission reductions. Despite the undeniable value of these programs, the measurable benefits often get lost in the conversation due to incomplete and limiting cost-effectiveness metrics. In reality, RENs provide shared economic benefits for Californians, fostering a positive impact that extends beyond the direct participants, while also contributing to improved public health outcomes.
Rising Electricity Bills
RENs know that California’s rising electricity rates are a significant concern that require solutions. However, a misconception has emerged in some energy affordability policy discussions that energy efficiency programs cause electricity rates to rise. In fact, the opposite is true: energy efficiency programs are funded through Public Purpose Program (PPP) funds, constituting about 1.5% of a customer’s electricity bill, a number that has not grown in recent decades.3 A report just released by the CPUC in response to the October, 2024 Executive Order from the Governor concludes that increases in electricity rates and the associated erosion of electricity bill affordability are largely driven by factors such as executive salaries and guaranteed shareholder profits, grid infrastructure expansion and upgrades and replacement costs (which EE helps to reduce), and wildfire mitigation and liability costs.4
Not only is energy efficiency a minimal cost, but it also lowers overall usage and helps customers save money. In fact, California boasts the most cost-effective energy efficiency programs in the nation, and these programs have kept electricity load growth flat for the past 25 years. The California Energy Commission recently released a report confirming that “California’s energy efficiency programs are highly cost-effective to ratepayers and have long been key to achieving affordable bills and meeting the state’s energy and environmental goals.”5
In 2023 alone, California’s energy efficiency programs generated $5 billion in benefits to ratepayers.6 For every dollar invested, the state saw a return of $8.49 in avoided energy costs, avoided peak capacity needs, and reduced greenhouse gas emissions. Over the decades, these programs have saved California over $100 billion and have reduced peak electricity demand by nearly 700 MW—enough to power over 200,000 homes.
Despite rising electricity rates in California, the state’s energy efficiency programs have kept the energy burden relatively low. While rates may continue to increase due to factors like infrastructure upgrades and wildfire mitigation, energy efficiency remains a crucial tool in keeping costs manageable and reducing greenhouse gas emissions, another priority for California and reducing greenhouse gas emissions, another priority for California. Reducing or eliminating funding for energy efficiency programs would be counterproductive, as it would drive up costs and hinder the shared goal of making energy more accessible and affordable.
As California continues to face challenges such as increasing energy demand and rising electricity rates, RENs will remain at the forefront of driving effective, affordable, and innovative solutions that benefit all residents. Their role is vital in ensuring that California’s energy future is not only more sustainable but also more accessible and equitable for everyone.
About California’s Regional Energy Networks (CalREN)
In 2022, recognizing the need for greater collaboration and strength across California’s regional energy networks, the Regional Energy Networks (RENs) formed CalREN. The goal of CalREN is to unify RENs statewide, ensuring that they work together to share resources, avoid duplicating services, and amplify their collective voice in stakeholder engagement processes. This partnership allows RENs to coordinate more effectively, use ratepayer funds efficiently, and ensure that energy efficiency programs continue to meet the needs of all Californians.CalREN’s mission is to foster unity and collaboration among California’s regional energy networks, leveraging local expertise to advocate for the state’s energy future. By working together, CalREN ensures that RENs remain an essential part of the solution to California’s energy challenges. For more information, visit californiaregionalenergynetworks.org.