California Could Save $44B Yearly With Geothermal Power

California is sitting on a clean energy goldmine that could save its residents tens of billions of dollars, but the state needs to act fast to claim it.

A new report from Clean Air Task Force shows that next-generation geothermal energy could cut California's annual electricity costs by $10 to $44 billion in 2045. That's a potential 52% reduction in what Californians would otherwise pay for power.

The catch? California needs to invest in mapping its underground geology now, before private developers can confidently drill. Without that subsurface data, companies are taking their projects to states like Utah and Nevada instead, where the ground beneath them is already well understood.

Here's the ironic part: California ratepayers are already funding geothermal development through their electricity bills. They're just paying to build it in other states while missing out on the jobs, tax revenue, and long-term energy security those projects create.

The solution mirrors what worked in Utah. The Department of Energy funded a testbed that drilled wells and publicly shared the underground data. Billions in private investment followed, including Fervo Energy's Cape Station, the world's first commercial-scale enhanced geothermal facility. California now imports that zero-emission power but gets none of the economic benefits.

If California develops geothermal in-state, the advantages multiply. The state would save an additional $3.5 to $5.5 billion yearly compared to importing the same energy. It could meet its 2045 clean energy targets while keeping solar installation at its current pace of 3 gigawatts per year. And it would dramatically reduce the need for expensive new transmission lines, one of the biggest bottlenecks in California's clean energy buildout.

The Ripple Effect

The workforce benefits extend beyond just cheaper electricity bills. Next-generation geothermal uses the same drilling skills as oil and gas work, creating a natural transition path for those workers into clean energy careers. California's existing Calpine Geysers geothermal facility already ranks among the largest taxpayers in its county, showing how these projects can transform local economies.

California has a proven track record of turning promising technologies into commercial reality. State support helped scale solar rooftops, electric vehicles, and grid-scale batteries. Next-generation geothermal is ready for the same boost.

The state has both the geology and the opportunity to become a geothermal powerhouse, turning underground heat into affordable, reliable clean energy for millions while creating thousands of good-paying jobs in the process.