California’s Distributed Solar & Storage (DSGS) program has become a standout in the state’s push to use home batteries and rooftop solar to reduce peak demand.
This Marin County-focused blog breaks down what DSGS actually is, how it compares to the CPUC’s Emergency Load Reduction Program (ELRP), and what all this policy back-and-forth means for taxpayers and residents from San Rafael to Novato, Mill Valley to Sausalito.
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DSGS vs ELRP: A California energy policy snapshot
DSGS brings in thousands of households statewide, using distributed energy resources to flatten demand during crunch hours.
By the end of 2025, DSGS was projected to enroll about 1,145 megawatts of peak-load reduction, and it’s shown faster, broader access than CPUC-administered programs.
ELRP, on the other hand, enrolled just 190 megawatts and later dropped its residential component because it didn’t pencil out cost-wise.
A July 2025 test showed DSGS delivered roughly 476 MW of the 539 MW provided by home batteries during a two-hour window, with about 100,000 households joining in, while ELRP managed only 64 MW.
Legislators and advocates across California have pushed to keep DSGS going, warning that moving participants into a CPUC-run setup could weaken a program that’s already working.
Critics point out that the CPUC’s track record with VPP-like programs is spotty, and building a comparable replacement would take time—making budget decisions about DSGS’s future trickier for places like Marin County.
What makes DSGS different?
- Easy enrollment with broad eligibility and clear rules makes it accessible for individual homeowners in towns like San Anselmo, Fairfax, and Ross.
- Statewide availability means Marin residents from Novato to Larkspur can join without local-utility gatekeeping.
- Taxpayer-funded model stands out from many CPUC programs funded through utility charges, sparking plenty of debate about long-term funding stability for Marin households.
Why Marin County residents should care
Marin’s climate and wildfire resilience efforts depend on reliable energy, especially during PSPS events and those hot Santa Rosa-area spikes that strain the substation network feeding Sausalito, Tiburon, and Corte Madera.
DSGS’s track record could help keep lights on for schools in San Rafael, small businesses in Mill Valley, and critical infrastructure in Fairfax during peak demand, while saving ratepayers some money across the county.
Local implications for Marin towns
- Residential participation in places like Novato and San Rafael can lead to real peak reduction when battery storage pairs up with solar arrays on homes and small businesses.
- Public safety and reliability gains from DSGS could boost emergency response and grid resilience in Tiburon and Ross during outages.
- Budget considerations weigh heavily for Marin City and towns funding energy efficiency and climate projects—whether DSGS’s taxpayer-backed model sticks around or shifts to a CPUC framework.
Policy debate and leadership
Senators Catherine Blakespear and Josh Becker have pushed to keep DSGS and warned that moving participants into CPUC control could undercut a program that’s already delivering value.
Critics call out the CPUC’s mixed record with VPPs and the time it’d take to build a solid replacement, which just tangles up state budgeting for Marin communities.
The Environmental Defense Fund and industry groups want DSGS to keep running at least until there’s a clear market-integration plan, pointing out it’s funded by taxpayer dollars, not utility charges.
Becker is working on new legislation to nudge the CPUC to change rules that limit distributed resources’ market participation and to fold DSGS lessons into broader VPP design.
Supporters argue keeping DSGS alive “for a few more years” while a transition plan gets built could help Marin households and businesses keep cutting energy costs, reducing pollution, and shoring up reliability.
What happens next for Marin and the state
The state budget proposal looks to eliminate DSGS, but it would let enrolled customers join a CPUC program that hasn’t been created yet. The CPUC wants to finish these related proceedings by the end of 2026.
In Marin, this shift means a careful transition plan. Local leaders have to balance ongoing participation, stable rules, and clear paths into whatever new energy-market designs end up serving San Rafael, Novato, Mill Valley, and the rest of the county.
People in Marin are watching this policy evolution pretty closely. The big question is: Can California actually build a stable, scalable path that keeps the benefits of homegrown solar storage flowing, while still offering predictable rules and costs for households from San Geronimo to Point Reyes Station?
Whatever happens next could reshape how Marin County powers its future—and at what price. That’s a lot to think about.
Here is the source article for this story: Will California fund or kill its thriving virtual power plant program?
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