Caltrain to Receive Compensation for Energy Returned to Grid

Caltrain has stated it will begin to be compensated for the power its new electric trains return to the power grid through regenerative braking as a result of policy changes made by clean energy partners Peninsula Clean Energy (PCE) and San Jose Clean Energy (SJCE).

The operator currently runs on 100% renewable energy supplied by PCE and SJCE, with a majority of power supplied by solar and wind.

23% of this power is currently returned back to the power grid, providing power to both residents and businesses along the corridor. SJCE and PCE will now allow Caltrain to qualify for a new Net Billing Rate from April 2026 which will enable the operator to receive roughly 1 million USD in compensation for the data it returns to the grid.

Director of San José Clean Energy Lori Mitchell, said:

Caltrain’s new electric trains don’t just use electricity—they also give some back.

Our Green Transportation program is the first in the state and one of the few in the country to give credit to public transit systems like Caltrain for the energy they return to the grid, helping them save money and reduce pollution.

Assemblymember Diane Papan previously authorised AB 1372 to include regenerative braking from trains as a renewable electrical generation facility, which would in turn require providers to compensate railroads that successfully return power to the grid.

With Caltrain’s suppliers now having approved net billing, the passage of the bill will now result in Caltrain receiving an additional 20% in compensation from energy distributor PG&E.

Caltrain Executive Director Michelle Bouchard said:

Caltrain running train service on 100% renewable energy for the first time in 161 years is a victory in and of itself.

But now that our partners at PCE and SJCE have agreed to compensate us for the power we return to the grid, we have yet another reason to celebrate our transition to the electric fleet. I thank PCE and SJCE for their dedication to both public transit and clean power, and Assemblymember Papan for leading the charge on this issue. We’ll all be breathing easier because of their efforts.

Caltrain’s use of electricity since its launch was originally estimated to cost around 19.5 million USD, with its actual use since the launch of electric services averaging at 207 MWh on weekdays and 175 MWh on weekends, reducing costs to 15.3 million USD.