"Gov. Newsom’s administration has proposed ending a program that’s brought a gigawatt of grid relief online. Lawmakers want to know what will replace it."

"California lawmakers face a make-or-break choice about the state’s biggest and most successful virtual power plant program: Give it enough money to keep running this summer or scrap it altogether.

The administration of California Gov. Gavin Newsom (D) has proposed ending the four-year-old Demand Side Grid Support program, which pays homes and businesses to send rooftop solar power back to the grid or reduce their energy use during times of peak electricity demand. DSGS has more than 1 gigawatt of capacity, making it one of the biggest VPPs in the country.

The proposal has set off alarm bells for environmental advocates and clean energy companies, which say that eliminating the program would be a costly mistake. And some state lawmakers briefed on the plan have questioned the logic of ending a program that’s successfully delivering grid relief."

Jeff St. John reports for Canary Media March 31, 2026. [2]