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$2B California Solar Plant To Shut Down After A Decade For The Most Frustrating Reason

Mike Garrett
Last updated: October 4, 2025 11:17 pm
Mike Garrett
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For the last decade, drivers on Interstate 15 heading through the Mojave Desert between Los Angeles and Las Vegas have passed by the massive Ivanpah Solar Electric Generating System. Located just south of the California-Nevada state line, the Ivanpah plant has become a local landmark, and one that’s impossible to miss, with its trio of 459-foot-tall towers that glow like beacons, and the five square miles of mirrors covering the desert floor below them.

Despite its ambitious scale and sci-fi movie appearance, the Ivanpah solar plant, which cost $2.2 billion to build, is scheduled to close in 2026. California is widely considered the best U.S. state for solar energy, but the Ivanpah facility’s decommissioning comes from its use of a now-obsolete solar technology that’s both more expensive and less efficient in generating energy.

For advocates of renewable energy and those who footed the bill to build the plant, the closure of the ambitious Ivanpah facility is a frustrating, if not unexpected, move in a fast-moving industry that’s seen huge advancements in the relatively short amount of time since the plant opened.

Read more: 7 Companies Owned By Elon Musk

From futuristic to obsolete

Aerial view of Ivanpah solar facility – David Mcnew/Getty Images

The Ivanpah Solar Electric Generating System began construction in 2010 and opened for business in 2014, with $1.6 billion of its construction cost backed by loan guarantees from the U.S. Department of Energy.

Unlike the more common photovoltaic solar panels seen on rooftops, the Ivanpah facility uses a complicated process where 173,500 computer-controlled mirrors — known as heliostats — reflect the sun’s rays to a receiver on one of three towers, which in turn heats a liquid to create steam that spins a steam turbine and generates power. When it opened, it was the largest solar plant in the world, with a lot of promise behind its technology.

Unfortunately for the plant and its operator, NRG Energy, advancements in the industry and rapidly dropping costs for traditional solar panels have rendered the Ivanpah system lacking in cost efficiency. PG&E, the primary buyer of the plant’s energy, announced in early 2025 that it would end its agreement with NRG to save money for its customers. The agreement initially called for PG&E to purchase power from Ivanpah until 2039. Once considered cutting-edge, the power generation method used by the Ivanpah facility is now considered a product of a bygone era in the ongoing evolution of solar technology. 

What’s next for solar in California?

Wildlife near the Ivanpah solar plant in California

Wildlife near the Ivanpah solar plant in California – David Mcnew/Getty Images

Beyond the primary problem of the solar facility not being cost-effective, there have been environmental issues at Ivanpah as well. With the massive amount of heat generated by the mirrors, it’s estimated that 6,000 birds have been killed per year while flying between the mirrors and the towers. Drivers on Interstate 15 have also reported issues with glare coming off the thousands of mirrors under the desert sun.

While no official plans for the plant after its decommission have been announced yet, NRG Energy, the owners of the site, have suggested that the area could be repurposed with a less expensive and more efficient photovoltaic system, which has become the industry standard for solar energy production. For now, Ivanpah will stand as a reminder of the risks involved when you have large, long-term publicly-backed infrastructure projects within fast-moving industries where the latest tech can quickly be made obsolete.

While things may not have worked out ideally for the Ivanpah facility, the state of California has remained steadfast in its commitment to expanding solar technology. Most recently, a solar experiment called Project Nexus has seen promising results from its effort to place solar canopies over California’s vast system of irrigation canals.

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Read the original article on SlashGear.

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