(NewsNation) — As solar panel installations soar in several states, a strange reality is setting in: There’s so much solar energy on the grid that it’s sometimes being thrown out.

California, which leads the nation in solar power energy, is among those states to have too much leftover energy that is now being wasted.

In 2022, 2.4 million megawatt-hours of electricity went unused in California. About 95% of that was solar energy, the Washington Post reported.

Rolling back incentives

In response, California is rolling back incentives for having rooftop panels and slowing the pace of installations.

It’s all causing fears of a slowdown in renewable energy development as well as an increase in electricity costs.

Some believe a surplus of solar energy is a problem several states could face in the future.

“We can make it more affordable and stable if we’re smart and manage the transition rather than have policies that go back and forth,” said Brad Heavner, a California Solar and Storage Association policy director. “We need to be smart and conscious and not reverse course on solar energy development.”

California is not alone. Other states have adopted solar energy.

Nevada generates 23% of its power from solar while Arizona generates around 10%. Both Nevada and Arizona are seeing the same problem that California is having.

New federal funding

With that said, President Joe Biden announced $7 billion in federal grants for residential solar projects on Monday. The initial installation cost for solar energy is extremely high, making it fairly inaccessible for most Americans.

“It’s a big deal. This new ‘Solar for All‘ program means that 900,000 households will have solar on the rooftops for the first time and soon. Millions of families will save over $400 a year in utility bills,” Biden said.