As it deploys community microgrids across Northern and Central California, Pacific Gas and Electric Company (PG&E) has announced new grant agreements for projects moving into development, and the selection of six new projects through the second application window of its Microgrid Incentive Program (MIP). This work builds on $43 million PG&E announced in 2025 for nine initial projects. 

Together, the projects represent more than $73 million in authorized community microgrid investments supporting local clean energy systems designed to help communities stay powered during outages. The projects span rural, coastal, tribal and high wildfire risk areas across Northern and Central California. 

“In addition to the grid investments PG&E is making, community microgrids empower communities to take an active role in building local resilience,” said Dave Canny, head of PG&E’s North Coast Region. A community microgrid is a grid-connected local energy system that can continue serving customers by operating independently during grid outages. It can help keep power on for: 

• Hospitals and health clinics 
• Fire stations and emergency services 
• Schools and local businesses 
• Other critical facilities and services 

Microgrids can use solar power, batteries, and other energy sources like biomass. They can also use smart grid equipment—such as switches, circuit breakers or reclosers—paired with microgrid controllers that allow a community to safely separate from the grid and keep power flowing locally during an outage. When the main grid goes down, microgrids can keep key services running for hours or even days. 

PG&E is advancing several of the nine projects selected in the first application round, with awardees executing grant agreements indicating they are ready to proceed. These agreements set the terms and conditions for the disbursement of funds, which will support microgrid engineering, design and development work—critical steps to bring projects from concept to construction. 

Three proposed projects in Lake County are advancing a first-of-its-kind approach known as Firemain Linked Auxiliary Supply/Hydraulic Energy Storage (FLASHES). 

The proposed projects intend to pair tens of megawatts of locally generated solar energy with pumped hydroelectric storage that uses subsurface water resources. Solar power will be used to pump water to roofed tanks at higher elevations when energy is abundant. When electricity is needed, the water will be released through turbines to generate power. 

All three FLASHES projects were a result of collaboration between local governments and Trane Energy Services.  

PG&E is also announcing the selection of six new projects from the second MIP application window. This second wave directs $30 million to projects that will serve more than 2,200 customers and support critical facilities, including schools, fire stations and health centers. These projects use a mix of solar, battery storage, biomass, and biodiesel. 

Award amounts range between $2-6 million each. 

As these projects move forward, customers can benefit from: 

• More resilient electric service 
• Greater protection for critical community services 
• Cleaner local energy resources 
• Improved wildfire and emergency resilience 
• Stronger community energy independence 

The Microgrid Incentive program is a statewide $200 million competitive grant program to fund clean-energy community microgrids in disadvantaged and vulnerable communities.