Electric Caltrain Will Earn $1 Million/Year Returning Power to the Grid

Northern California’s Caltrain commuter rail line, which recently introduced electric trains, will start receiving roughly $1 million annually for the power it returns to the grid starting in April 2026, offering a potential model for a new source of transit funding.

As an article in Metro Magazine explains, “Currently, Caltrain returns approximately 23% of the power it uses back to the power grid, providing power to residents and businesses along its corridor.” A new state law, AB 1372, requires utilities to compensate railroads for energy they return to the grid. 

Regenerative braking isn’t new technology: it was first introduced in trains in 1886, according to Caltrain.  But these systems were in disuse until now. “They work by driving an electric motor in reverse to recapture energy rather than losing it as heat during braking. Caltrain's fleet is designed to return that power to the Overhead Contact System (OCS), which feeds it to the nearest traction power facility.”

The electrification project also improved service and ridership on the line, which saw a 76 percent increase in passengers between June 2024 and June 2025.