Desert Gold Rush: Investors Scramble For California’s Untapped Geothermal Bounty

While the rest of the clean energy sector struggles with fits and starts, geothermal investment in California is absolutely booming. North American geothermal funding jumped a staggering 85% in the first quarter of 2025, hitting $1.7 billion. That’s nearly as much as all of 2024’s investment. Not too shabby.

California isn’t just leading the pack—it’s lapping the competition. The Golden State produced 70% of America’s utility-scale geothermal electricity last year. And why wouldn’t it? The state sits on four major geothermal hotspots, including The Geysers—the world’s largest geothermal complex pumping out 725 MW. That’s like having a reliable power plant that never needs to take a smoke break.

California dominates geothermal energy with 70% of US production, sitting on underground power that works while other renewables sleep.

Developers are drilling like there’s no tomorrow. Q1 2025 saw 47 new geothermal wells announced—an 80% increase from last year. A comprehensive statewide strategic plan would help direct these investments toward priority development zones and create more market certainty. This renewable resource offers practically zero emissions while providing continuous energy regardless of weather conditions. Turns out clean energy that works 24/7 is kind of attractive when you’re trying to power a massive economy. Who knew?

Unlike its finicky cousins solar and wind, geothermal delivers steady power regardless of weather tantrums. This reliability helped California operate on 100% clean electricity for about 7 hours daily in 2025. Not too bad for a state that used to be synonymous with smog.

But it’s not all sunshine and rainbows. The state lacks a coherent geothermal roadmap, leaving investors scratching their heads about transmission access and regulatory hoops. California policymakers need to get their act together on interagency coordination.

The potential payoff is massive. Beyond electricity, these projects could facilitate lithium extraction and heating applications with minimal land impact. Federal reforms like Executive Order 14154 are helping cut red tape, but regulatory uncertainty remains the biggest buzzkill for scaling investment.

For California to fully cash in on its underground treasure, it needs to stop dragging its feet on permitting and standardized protocols. The desert gold rush is on—but without a map, some prospectors might take their shovels elsewhere.