California lawmakers have approved a bill permitting residents to install plug-in solar panels that connect directly to standard electrical outlets, aiming to reduce household electricity costs and curb greenhouse gas emissions. The measure, which passed with broad bipartisan support in both legislative chambers late Wednesday, faces opposition from investor-owned utilities but reflects growing concern over rising energy prices in the state.
If signed into law by Governor Gavin Newsom, California would become one of nearly a dozen states to authorize so-called balcony solar systems, which consist of a small number of solar panels designed for easy installation. These systems, often marketed for use on balconies or terraces, gained popularity in Germany before expanding to several U.S. states. Utah became the first to legalize plug-in solar last year, with Colorado, Maryland, and Virginia among others also adopting similar regulations.
Newsom has not yet indicated whether he plans to sign the bill. His office stated prior to the vote that it typically refrains from commenting on pending legislation. Similar bills allowing plug-in solar panels are currently under consideration by governors in New Jersey and New York.
Energy affordability has emerged as a significant issue in the 2026 midterm elections, alongside concerns over gasoline prices driven by the ongoing conflict involving Iran. High electricity costs were pivotal in recent gubernatorial races in New Jersey and Virginia. California trails other states with the highest residential power rates among the contiguous U.S., a situation intensified by steady increases over recent years.
Nationwide, electricity prices have climbed largely due to expanded demand from large-scale data centers and rising utility investments in infrastructure such as transmission lines. The Energy Information Administration reported a 5 percent increase in average monthly household electricity expenditures in June compared with the previous year, reaching approximately $183 for customers consuming 1,000 kilowatt-hours.
Plug-in solar panels are substantially smaller than traditional rooftop installations and can be installed more quickly, often without local building permits or utility approval where allowed. However, their limited size generally means they offset only a portion of household energy use. Savings tend to be most significant for residents in energy-efficient dwellings with modest electricity consumption.