California Launches $20 Million Solar-Covered Canal Pilot to Cut Evaporation and Generate Clean Energy

TL;DR: California has completed a $20 million pilot that places solar panels over a Central Valley canal to measure water savings from reduced evaporation and electricity generation.

The state faces growing water loss from evaporation as temperatures rise, while also needing more renewable power to meet climate goals. Project Nexus places solar arrays atop an existing irrigation canal in Turlock, turning unused surface area into a dual‑use asset. The pilot is a partnership between the California Department of Water Resources, Turlock Irrigation District, solar developer SolarAquaGrid LLC, and the University of California, Merced.

Governor Gavin Newsom praised the effort, saying California continues to lead with innovative climate solutions and highlighting the first‑of‑its‑kind solar‑covered canal in the Central Valley. The Legislature and the governor provided a $20 million investment to test clean energy generation and water savings through this infrastructure.

UC Merced researchers analyzed statewide canal coverage and estimated that placing solar panels over California’s open canals could save billions of gallons of water each year. The pilot will measure actual evaporation reduction in gallons, track electricity output in megawatt‑hours, monitor any changes in water quality, and assess whether canal maintenance costs drop due to less vegetation growth.

If the technology proves effective, scaling solar covers across the state’s canal network could contribute significantly to both water resilience and renewable energy targets. The approach also avoids new land use, preserving agricultural and ecological spaces.

Watch for the pilot’s results on water savings and energy production over the next year, which will inform decisions about broader deployment across California’s water infrastructure.