Caltrain to start receiving compensation for clean energy returned to the grid

Peninsula Clean Energy (PCE) and San Jose Clean Energy (SJCE) have updated their policies so that Caltrain can now be compensated for the power it returns to the grid through regenerative braking in its new electric trains.  

Caltrain notes it operates on 100% renewable energy and currently returns about 23% of the power it uses back to the grid.  

“Caltrain’s new electric trains don’t just use electricity—they also give some back," said SJCE Director Lori Mitchell.  "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.”  

Starting in April 2026, Caltrain will qualify for a new billing rate that is expected to generate $1 million annually for the agency. 

“Our partnership with Caltrain and its bold move to all-renewable and carbon-free electric rail service have already improved the quality of life for our communities and illustrates how powerful local, community-driven leadership can be in better meeting customer needs,” said PCE CEO Shawn Marshall. “Now with the new regenerative braking, their cleaner, quieter and more efficient travel will send even more emission-free power back to the larger regional grid.” 

The policy updates allowing Caltrain to receive compensation come from Assembly Bill 1372, authored by Assemblymember Diane Papan. The bill labels regenerative braking from electric trains as a renewable electric generation facility. This requires power providers to compensate railroads for any power they return to the grid. Caltrain notes that with its approved net billing rate, this bill could result in the agency receiving an additional 20% in compensation from PG&E, its energy distributor.  

“Caltrain running train service on 100% renewable energy for the first time in 161 years is a victory in and of itself,” said Caltrain Executive Director Michelle Bouchard. “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 notes its energy use for its electric service averages 207 MWh during weekdays and 175 MWh during weekends, costing approximately $4 million less than what was previously estimated to run the service. Thanks to the 100% renewable energy from PCE and SJCE, the agency says it benefits from the California Low Carbon Fuel standards program, lowering electric fuel costs even more.