The Future of Distributed Energy in California: A Conversation With CALSSA Executive Director Brad Heavner

California has long been one of the most influential solar markets in the country, not just in scale but also in shaping conversations around distributed energy, storage, interconnection, and grid modernization. Many of the opportunities and challenges emerging across the broader U.S. solar industry are already playing out in California in real time. As developers, investors, utilities, and policymakers navigate rising electricity demand, transmission constraints, evolving incentives, and the growing role of battery storage, the state is becoming an important proving ground for what the next era of distributed energy could look like.

Solaris Energy has worked in California for many years as a financing partner and developer, as well as an Independent Power Producer (IPP) and operator of distributed solar projects, while also participating in industry efforts through its longstanding relationship with the California Solar & Storage Association (CALSSA). As the industry continues adapting to a post-Investment Tax Credit (ITC) landscape, Solaris spoke with CALSSA Executive Director Brad Heavner about where California’s solar market is headed, the biggest opportunities and bottlenecks ahead, and why distributed solar and storage will play a critical role in the future grid.

What is CALSSA currently focused on as California’s solar market continues to evolve?

Brad Heavner: We are focused on both helping reduce the costs of regulations and creating additional value for customers.

On the cost side, one of the biggest pieces of that is the interconnection process. In particular, for larger and medium-sized projects, there are obstacles around getting projects studied alongside other large projects, and slowing projects down makes them more costly. We are pushing really hard to streamline the rules and make the interconnection review process more workable for medium-sized projects.

The other major focus is creating new opportunities and value. A big part of that is what’s known as virtual power plants, where we can manage systems to be responsive to grid needs and get extra compensation for doing that.

There’s a puzzle around energy stability and affordability in California and elsewhere. Customers are increasing their energy consumption, we don’t want to build more gas plants, and siting transmission is super difficult. So we are needed. The question is: How do we produce the right value to the grid and all customers in a way that is helpful to the system, creates more generation, and is cost-effective for customers installing these systems?

With the batteries and control systems that we’re now installing, we’re able to be much more responsive and manage systems more dynamically. We’re excited about working out the kinks in those newer programs because we know they’re going to result in a lot of customer value.

How is California adapting as the industry moves into a post-Investment Tax Credit (ITC) era?

Brad Heavner: It’s a big question, because the changes to the ITC have created certain deadlines that people are working against. There’s some opportunity in that because those deadlines force customer decisions, and we’re going to be able to get some projects in over the next couple of years, but we’re already having to think post-ITC.

It’s a fascinating time right now as all the market players think about what types of projects are really going to work at scale. There will certainly still be solid opportunities for certain types of customers. Batteries are still going to get the ITC, and if we design things right with the right kinds of customers, there’s still a lot of customer value in investing in on-site generation.

I think it’s going to be an era of experimentation, but there are still going to be projects that are clear winners. We do not need the ITC for many projects, and for others, we’re going to get creative.

I also think there’s going to be a vastly increasing need and opportunity for projects in the 5 MW size range because transmission is a bottleneck, and those projects can be built fairly quickly. With batteries and the ability to be more location-specific and time-dynamic, there’s a lot those projects can bring to the grid.

For years, so much of the discussion around projects of that size has centered on the traditional community solar model. That has resulted in a lot of development, but it hasn’t scaled to the level we need, especially as the grid becomes more dynamic and responsive.

I think there’s an opportunity for a new model that can be even more effective — projects that are third-party owned and front-of-the-meter, but very location-specific in areas of need and more responsive to grid conditions. The challenge now is figuring out the economics that make those projects work for developers while also delivering value to the grid and customers.

"I picture a future with more local generation and more strategically placed batteries that are responsive to local grid needs. There are going to be a lot of good answers that come out of that model."

How do you see distributed solar and storage helping meet rising electricity demand in California?

Brad Heavner: One of the biggest conversations happening right now is around data centers and rising electricity demand. There’s a conventional view that the only practical way to serve that kind of load is with large gas generation, with maybe a little solar and storage added alongside it. But there are limitations to that approach, too, including the simple reality that there are more proposed gas projects than available turbines.

I’m hearing real willingness within the data center development community to get as much as they can out of renewable generation. I think there’s a lot that distributed solar and storage can bring to that conversation, but we have to think about the system differently.

In places where there’s some existing grid capacity, but not enough to fully serve a new data center or major load, I think we need to turn the traditional model on its head. Instead of relying almost entirely on centralized generation and transmission expansion, we should be looking at how much local generation, battery storage, and other non-fossil-fuel resources can be built alongside the load itself.

That local generation can function as a predictable base layer of energy, while the grid helps manage the spikes. Obviously, it depends on project size and available transmission, but I think there are going to be many places where local, non-fossil generation can become a significant part of the solution.

More broadly, I think California has a real opportunity to rethink how we meet growing energy needs without overbuilding the grid. If we do things the old-fashioned way, it becomes a story of massive solar farms far from load centers, more transmission lines, and more distribution infrastructure. That gets expensive quickly.

We can do better. I picture a future with more local generation and more strategically placed batteries that are responsive to local grid needs. There are going to be a lot of good answers that come out of that model.

"Companies like Solaris are important because we need innovative developers and partners who are willing to figure out what works while staying grounded in market realities."

What role do organizations like CALSSA — and companies like Solaris Energy — play in shaping the future of solar in California?

Brad Heavner: CALSSA sits at the intersection of policy advocacy, industry collaboration, and education. We help project developers understand the rules, connect developers with financing companies and equipment manufacturers, and help shape the regulatory environment for growth.

Fundamentally, we’re here to help create the conditions that allow distributed solar and storage to succeed long term in California. A huge part of that is making sure the policy environment evolves alongside the technology and the needs of the grid.

We’re a small team that covers the entire customer-sited solar and storage market in California, and people are often surprised to hear that we only have nine staff. There’s always a need for more resources, but we work hard to stay deeply engaged across the industry and help solve problems where we can.

Companies like Solaris are important because we need innovative developers and partners who are willing to figure out what works while staying grounded in market realities. My conversations with Solaris have always had a good balance of creativity and practicality, and we need experienced companies like that helping guide project development as the market continues to evolve.

Ultimately, California’s energy future is going to require collaboration across developers, policymakers, financiers, utilities, and industry organizations. There’s a lot of change happening right now, but also a lot of opportunity to build a more flexible, distributed, and responsive energy system.