Mercedes-Benz Powers Up Solar, Driving Savings and Resilience in California's Volatile Energy Market

FONTANA, CA – March 18, 2026 – In a significant move that underscores a growing trend among corporations, Mercedes-Benz USA has activated a new 720-kilowatt (kW) rooftop solar installation at its Parts Distribution Center in Fontana, California. The project, completed by EDPR NA Distributed Generation (EDPR NA DG), transforms the facility’s vast, previously unused rooftop into a power-generating asset, providing a strategic hedge against California’s notoriously high and volatile energy costs.

This initiative is more than a nod to corporate sustainability; it represents a calculated business decision to enhance energy independence and operational resilience. The system is projected to save the luxury automaker over $18,200 in electricity costs within its first year of operation alone. By generating clean energy directly onsite, the facility reduces its exposure to fluctuating utility rates and bolsters its energy supply amid forecasts of surging power demand across the state.

A Strategic Hedge Against Energy Volatility

For California businesses, the energy landscape is becoming increasingly complex. The state boasts some of the highest electricity rates in the nation—averaging around 27 cents per kilowatt-hour in early 2025—with forecasts predicting annual increases of 3-5%. This project allows Mercedes-Benz to lock in a portion of its energy costs, creating long-term budget certainty.

"California businesses are navigating a rapidly evolving energy landscape marked by increasing demand and price fluctuations," said João Barreto, CEO of EDPR NA Distributed Generation. "Rooftop solar is a smart, scalable solution that allows organizations like Mercedes-Benz USA to control energy costs, improve resilience, and advance their sustainability goals — all while maximizing the value of existing infrastructure."

The concept of resilience is particularly critical. While California's grid has shown improvement, the threat of disruptions from extreme weather and wildfires remains a concern for commercial operations that rely on an uninterrupted power supply. Onsite distributed generation, like this rooftop system, provides a crucial layer of energy security, ensuring that daily operations at the parts distribution center can continue with greater reliability. The project's financial viability is further supported by federal incentives like the Investment Tax Credit (ITC), which allows businesses to deduct 30% of installation costs, and accelerated depreciation schedules that improve the overall return on investment.

Powering California's Clean Energy Transition

The Mercedes-Benz project is a microcosm of a much larger shift occurring across California. The state is pursuing some of the most ambitious clean energy targets in the world, with legal mandates to achieve 90% clean electricity by 2035 and 100% carbon-free electricity by 2045. Achieving these goals depends heavily on the widespread adoption of distributed energy resources—smaller-scale power generation located at or near the point of use.

By adding 720 kW of clean capacity to the grid, the Fontana facility directly contributes to these state-wide objectives. It helps meet the California Energy Commission's projections of a potential 61% surge in electricity consumption over the next two decades, driven by the rapid adoption of electric vehicles and the expansion of energy-intensive data centers. This project is a prime example of the 2023 state mandate requiring new commercial buildings to include solar panels and battery storage, a policy designed to embed clean energy generation into the fabric of the state's infrastructure.

EDP Renewables, the parent company of EDPR NA DG, is a major force in this transition. The company already operates 1,229 megawatts of clean energy assets in California, enough to power the equivalent of 485,000 homes. This new project adds to its growing portfolio of over 183 distributed generation sites across the state, demonstrating the scalability of commercial solar solutions.

From Idle Rooftops to Active Assets

This installation aligns seamlessly with Mercedes-Benz's global "Ambition 2039" strategy, which aims for a net carbon-neutral new vehicle fleet and production process by 2039. The company, which achieved net carbon-neutrality at its own vehicle production plants in 2022, views sustainability as a core business principle that spans the entire value chain, from resource use to end-of-life recycling.

By converting an idle rooftop—often called the "fifth wall" in commercial real estate—into a productive solar farm, the project exemplifies the principles of a circular economy and resource efficiency. It generates substantial power without requiring additional land, a critical consideration in densely populated Southern California. This approach demonstrates how large corporations can integrate renewable energy generation directly into their existing operational footprint, turning a passive piece of infrastructure into an active financial and environmental asset.

Fueling the Local Green Economy

The benefits of the project extend beyond the balance sheet and into the local community. The construction phase supported 65 jobs, contributing to a sector that has become a cornerstone of California's economy. The state leads the nation with over 544,600 clean energy workers, a workforce that is growing four times faster than the state's overall economy.

In 2024, California was home to 78,982 solar-specific jobs, representing 28% of the entire U.S. solar workforce. These roles span construction, installation, engineering, and project management, creating skilled employment opportunities in areas like the Inland Empire. The growth of distributed generation projects like the one in Fontana is expected to continue fueling this economic engine, with projections indicating the potential for over 100,000 new clean energy jobs in California by 2030 as the state works to double its solar capacity.