New Study Reveals Soaring Costs of California's Green Energy Transition

State's Ambitious Climate Goals Could Cost Households Tens of Thousands of Dollars

SACRAMENTO, Calif., April 22, 2025 /PRNewswire/ -- As the US marks Earth Day, a new study released today by the Pacific Research Institute, a nonpartisan, California-based, free-market think tank, reveals the staggering costs California consumers and businesses will incur as the state pursues its aggressive green energy mandates.

The paper, "The Cost of Going Green," provides a comprehensive analysis of the economic burden placed on Californians by the state's forthcoming green energy requirements. 

According to PRI's analysis, California households will bear significant costs, estimated to be between $17,398 and $20,182 per household, to fund the state's transition to alternative energy sources between 2025 and 2050.

Click here to download the study

These costs include not only the construction and installation of new infrastructure, such as solar panels, wind turbines, and electric vehicles, but also the decommissioning and dismantling of existing natural gas and nuclear plants.

"California's government mandates are forcing an energy transition that will impose enormous costs on the state's residents," said Dr. Wayne Winegarden, PRI senior fellow in business and economics and co-author of the study. "These policies will lead to higher energy costs, a less reliable energy system, and reduced economic opportunities. It is crucial for policymakers and the public to understand the true costs of these mandates."

"The Cost of Going Green" finds that a greater reliance on solar and wind energy does not lower electricity prices despite the claims of proponents. As California has increased its share of electricity generation from these alternative resources, the state's electricity prices have become consistently more expensive relative to the rest of the country. Due to government green mandates, Californians pay 56% more than the U.S. average, despite state residents using 34% less energy.

PRI's past research has also warned of potential power shortfalls from looming government green mandates, estimating that by 2045, the state could fall 21.2% short of the daily power required to meet the needs of its residents and businesses.

"The Cost of Going Green" also uncovers that expanding use of solar technology presents environmental and safety challenges. For instance, solar panels, while hailed as a green energy source, are made from hazardous materials that pose disposal and recycling challenges. The mining of resources for solar panels, their manufacturing, and their disposal all create environmental risks.

"California's pursuit of a green energy future comes with a hefty price tag and its own environmental challenges," added Kerry Jackson, study co-author and PRI's William Clement Fellow in California Reform. "It is essential that policymakers enact energy policies that are economically viable and do not place an undue burden on California's households and businesses."

The Pacific Research Institute (www.pacificresearch.org) is a non-partisan, free market think tank that champions individual freedom, market-based solutions and personal responsibility. Follow PRI on Facebook, X, LinkedIn and Youtube.

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SOURCE Pacific Research Institute