Improving the Market Structure for Delivering Customer-Side Energy Efficient and Clean Energy Technologies

In 2025, Cal TF Staff is focused on developing and socializing through the Cal TF stakeholder process recommendations to support a vibrant, competitive energy efficiency (EE) and customer-side clean energy marketplace that improves cost-efficiency and promotes affordability. 

Overview

EE and other customer-side clean energy technology solutions are essential to power California’s affordable, abundant, resilient, and intelligent energy future. California has been a nationwide leader in developing and deploying EE technologies and programs for more than three decades, leading to lower bills, reduced carbon emissions, and a more resilient grid. As the federal government withdraws support for our nation’s clean energy future, California’s continued leadership in supporting and promoting EE and other customer-side clean energy technologies and solutions is more important than ever – for California’s residents, for our nation, and for the future of our planet.

A vibrant, robust EE marketplace lowers costs, generates highly skilled and well-paying jobs, and contributes to local economic growth. EE technologies and services are designed, manufactured, and can be cost-efficiently and effectively delivered by hundreds of commercial, non-profit, and government entities, including trusted, local community organizations. Thus, EE and other customer-side clean energy technologies and services benefit when offered through a vibrant, competitive marketplace under a regulatory framework appropriately designed for non-monopoly goods and services.

Cal TF Staff proposes establishing a regulatory framework that aligns with market dynamics, lowers barriers to entry, fosters market activity and competition, and provides clear, flexible rules that support innovation, investment, and efficient market functioning. An updated regulatory and market framework is needed that is appropriately designed for non-monopoly goods and services. EE and other clean energy technologies can and should be developed and deployed by a wide range of entities. Furthermore, a robust EE and clean energy technology marketplace can be structured to attract private capital investments and increase the value of utility ratepayer funding in this era of rapidly rising rates.  

Market Structure Concept (Draft, in development)

See the current EE/IDSM Market Structure Concept, presented and discussed at the May 22, 2025, TF Meeting.

Approach and Status

Cal TF develops its recommendations and work product through an open, transparent stakeholder process.

Cal TF Staff presented initial concepts at the April 25, 2025, TF Meeting and incorporated feedback into an updated concept at the May 22, 2025, TF Meeting. TF Members and Stakeholders provided feedback on the overall concept and detailed feedback on the initial list of “Shared Resources.”

Cal TF Staff continues to solicit and receive feedback from stakeholders and is drafting the initial Technical Position Paper (TPP) for discussion at the July TF meeting.

Contact: caltf@futee.biz