What Side of the Meter Do You Want to Be On as AI Drives Up Energy Demand? The Pros and Cons of Each Side
Every home with electricity has a meter, and every meter has two sides. On one side is the grid, selling power. On the other side is the customer, buying it. As artificial intelligence and data centers drive up energy demand, more California homeowners are deciding they would rather be on the supply side than the buying side.

Why this choice matters now
Data center developers have asked PG&E for about 15,000 megawatts of power, enough at full load for about 16.4 million homes, more than the 15.06 million homes in California. Signed agreements alone reached about 4,000 megawatts by the end of 2025. The California Energy Commission projects statewide electricity use could rise more than 50 percent by 2045. When demand grows that fast, the side of the meter you are on shapes your costs for years to come.

The buying side: pros
There is nothing to install. You pay your monthly bill and the utility handles everything. For some homes, such as those with heavy shade or roofs that are not suitable for solar, buying from the grid may be the only practical option.

The buying side: cons
You pay whatever rate the utility charges, and California rates already average about 30 cents per kilowatt-hour, second only to Hawaii. You buy power during the most expensive evening hours, the same hours data centers keep running. You have no backup power when the grid goes down. And if grid upgrades for new demand raise rates, you absorb those costs.

The supply side: pros
Your home produces its own solar power during the day and stores extra energy in a battery for the evening. You use your own power during peak hours instead of buying it at the highest prices. You have backup power during outages. When you produce more than you need, extra electricity flows back to the grid and earns bill credits. California is also recognizing the value of home batteries. Governor Newsom signed SB 913, which directs regulators to set a value for battery power sent to the grid during high demand, opening the door for battery owners to be compensated.

The supply side: cons
Not every roof or home qualifies. The system has to be installed, which takes planning and approvals. And some homeowners simply do not like the idea of supplying power to a grid that serves data centers and big tech. That last concern is understandable. But consider the alternative: buying from that same grid at rising prices while competing with data centers for electricity.

The cost barrier is gone for many homeowners
The biggest con used to be the upfront cost. That has changed. Qualifying California homeowners can now get solar and battery storage through third-party ownership programs without buying or financing equipment. Many agreements offer a rate designed to come in below utility rates, include maintenance and battery replacement for the term, and can transfer to a new owner if the home is sold.

The takeaway
As AI drives up energy demand, the grid will keep growing, and someone has to pay for it. Homes on the supply side produce, store and send back power, with savings that can reach up to 40 percent compared with utility rates, depending on the home and program.

To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org/california_public_utility_commissions