In an innovative project aimed at addressing both water conservation and clean energy production, the California Solar Canal Initiative (CSCI) is set to install solar panels over the state’s canals, potentially reducing water evaporation by up to 70%. The project, spearheaded by the University of Southern California (USC) in collaboration with seven academic institutions and backed by various state agencies, seeks to tackle the twin challenges of dwindling water supplies and the need for more renewable energy in the state.

California is facing a projected 10% decrease in its water supply by 2040, a direct result of severe droughts and reduced allocations from the Colorado River. This grim forecast has made it imperative for the state to find sustainable solutions that both conserve water and generate clean energy. The California Solar Canal Initiative offers a promising way to address these concerns, harnessing the sun’s power to reduce water loss while also contributing to the state’s clean energy goals.

The challenge: confronting California’s water and energy crisis

California is grappling with two major issues: an urgent need to meet its renewable energy targets and the impending decline in water availability. The state has committed to producing 100% near pollution-free electricity by 2045, but current solar energy generation is falling short. Presently, only 1 Gigawatt (GW) of new utility solar capacity is added to the grid each year, far below the 6 GW needed to meet the state’s ambitious renewable energy target.

Simultaneously, the state is facing significant challenges with water conservation. As water supplies diminish, finding new ways to conserve water is critical for California’s future. Solar panels installed over canals could provide a dual solution: generating clean energy while dramatically reducing the evaporation of water from the canals.

Initial estimates suggest that covering the state’s 4,000-mile canal network with solar panels could reduce annual water evaporation by 63 billion gallons—enough to meet the residential water needs of around 2 million people. This would also generate up to 13 GW of clean energy, enough to power 2 million homes each year.

A pilot project takes flight

To test this concept, California launched a pilot project in the Central Valley in 2022. In partnership with the Turlock Irrigation District, UC Merced, and Solar AquaGrid, the project set the stage for what could be a transformative solution to the state’s water and energy crises. However, while promising, more research is needed to expand the solar canal project on a statewide scale.

USC leads the research effort

The USC Dornsife Public Exchange has formed a research team consisting of experts from seven universities to examine the feasibility of large-scale solar canal implementation. The team’s approach focuses on several key areas:

1. Scaling: Gathering data from pilot projects to assess the costs, benefits, and scalability of solar panels over canals.
   
   
2. Policy and regulatory: Navigating the complex landscape of energy, water, and land use policies that could either support or hinder the development of solar canals.
   
   
3. Comparative economics: Evaluating the cost-effectiveness of solar canals in comparison to other solar energy solutions.
   
   
4. Community resilience: Creating a framework to assess the social and environmental impacts of solar canals on local communities.

A comprehensive decision-making framework will integrate these research areas, providing key insights for policymakers and helping identify gaps in the analysis.

What’s next for solar canals

Research into solar canals officially began in the fall of 2024, with a focus on policy and regulatory analysis. The California Solar Canal Summit, held in Sacramento on March 24, 2025, brought together key stakeholders to discuss the next steps in the initiative. The insights from this summit will shape the subsequent phases of research.

Once the analyses are complete, the CSCI plans to launch an interactive platform designed to provide decision-makers, developers, and other stakeholders with data and insights to identify the most suitable canal locations for solar panel arrays.

A vision for a sustainable future

California is positioning itself at the forefront of innovative solutions to climate change. According to Secretary Wade Crowfoot of the California Natural Resources Agency, “California is leading the way in exploring innovative solutions to tackle climate change and strengthen our water and energy resilience. We are excited to see top research institutions come together to help deploy solar panels over water canals—a big idea with great potential.”

As the state continues to develop its solar canal initiative, it represents a promising step toward both securing California’s water future and achieving its clean energy goals—paving the way for a more sustainable and resilient future for the state.