On Sept. 18, California’s main grid battery at Moss Landing caught fire for the fourth time in seven years after roughly 1,500 units sparked on their own [1][2]. Twelve days later, Gov. Gavin Newsom signed two laws to pay homeowners for the power stored in their garage batteries, electric vehicles (EVs) and smart thermostats [4].

Why it matters: California spent years betting on giant lithium plants to save daytime solar for evening peaks. Now, the state’s main site is a fire risk built with a closed design the industry no longer uses [1]. San Jose State professor Dustin Mulvaney puts it simply: “If we had only known the worst-case scenarios of how not to build batteries, we wouldn’t have built Moss Landing.” [1]

My read: The failure of the big battery just made the case for the small one. California runs the nation’s largest battery fleet [1], yet Pacific Gas and Electric (PG&E) has kept its nearby Elkhorn plant dark since a January 2025 fire [3]. Senate Bill (SB) 913 steps into that gap, ordering the California Public Utilities Commission (CPUC) to price the power customer-owned batteries send back to a stressed grid [5].

By the numbers:

  • 1,500 units burned: Roughly 1,500 still-charged, hard-to-reach units caught fire while crews tried to take them apart [1].

  • 4th fire since 2019: The Sept. 18 blaze marks the site’s fourth safety failure in seven years [1].

  • 2 new laws: SB 905 and SB 913 order the state to pay customers for their battery power [4].

  • July 2027 restart: PG&E’s nearby Elkhorn plant stays offline until mid-2027 [3].

Lithium battery fire in California

What I’d watch: Industry experts view this fire as a chemistry lesson. Moss Landing used nickel-manganese-cobalt (NMC) in a tightly packed layout, which is less stable than newer options [3]. Today’s home batteries rely on lithium iron phosphate (LFP), a mix that avoids the same intense fires when damaged [1].

What I keep circling is whether homeowners know to ask for LFP by name, or if they just buy “a battery.”

Three signals I am watching next:

  • The CPUC’s math: The bill’s author was “shocked” Newsom signed it, and trade groups warn the next governor’s CPUC will decide if customer bills actually drop [5].

  • Who stays outside: Newsom vetoed Assembly Bill (AB) 1813, a shared solar program, the exact same day he signed the virtual power plant (VPP) bills [4]. Renters who cannot buy an EV or home battery miss out.

  • The chemistry message: The fire points to aging NMC designs, not modern LFP setups [1][3]. I want to see if sales teams explain this difference to homeowners buying backup systems today.

The catch: My read: this is not a clean passing of the torch. Moss Landing relies on an older design the industry has moved past, and experts stress this latest fire reveals nothing new about modern battery safety [3]. Also, the VPP payout remains just an idea until the CPUC writes the actual pricing rules, especially since this governor vetoed three VPP bills last year [5].

Related reading

  • The Big Shift: California’s main grid battery at Moss Landing burned for the fourth time on Sept. 18, pushing the state to sign laws 12 days later that pay homeowners to act as the grid instead.

  • Why It Matters: The state is shifting away from massive battery plants and leaning on systems owned by homeowners, changing who profits during power shortages.

  • What I’d Watch:

  • The CPUC math: The state agency that regulates utilities must now price customer battery power, deciding if homeowner bills actually drop.

  • The LFP-vs-NMC choice: Whether buyers ask for lithium iron phosphate (LFP), which avoids the fire risks of older nickel-manganese-cobalt (NMC) setups.

  • Shared solar: Newsom vetoed AB 1813 the same day, locking renters and non-battery owners out of the chance to earn money.

  • The Catch: The Moss Landing fire highlights an older design the industry already dropped, but the homeowner payout is just an idea until regulators set the final rules.

Related reading

Sources

[1] CalMatters — “Moss Landing battery storage fire flares up again” (Sept 18, 2026) — https://calmatters.org/environment/2026/09/moss-landing-battery-fire-reignites-fears [2] Monterey County Dept. of Emergency Management — “2025/2026 Moss Landing Vistra Power Plant Fire” — https://www.readymontereycounty.org/emergency/2025-moss-landing-vistra-power-plant-fire [3] Canary Media — “Vistra’s Moss Landing grid battery is on fire yet again” (Sept 18, 2026) — https://www.canarymedia.com/articles/batteries/vistra-moss-landing-on-fire-again [4] Office of Governor Gavin Newsom — “Governor Newsom issues legislative update 9.30.2026” — https://www.gov.ca.gov/2026/09/30/governor-newsom-issues-legislative-update-9-30-2026/ [5] Canary Media — “Newsom finally says yes to virtual power plants” (Oct 1, 2026) — https://www.canarymedia.com/articles/virtual-power-plants/newsom-yes-to-virtual-power-plants