CPUC’s revised proposed decision could decimate California’s solar market – pv magazine USA

May 29, 2024 Anna Fischer

The Community Renewable Energy Act (AB 2316) was sponsored by the Coalition for Community Solar Access (CCSA) and supported by the Solar Industry Energy Association, GRID Alternatives, Vote Solar, Sierra Club and more. However, the California Public Utilities Commission (CPUC) opposed the bill.

The CPUC concluded in its proposed decision that the net billing tariff (NVBT) set forth in the Community Renewable Energy Act “is inconsistent with federal law and fails to meet the requirements” of the act, which the CCSA said is incorrect.

In comments filed in March by the CCSA, the Commission characterized the original proposed decision as flawed and misinformed and stated that it would not lead to the development of community solar projects as the Legislature envisioned with the passage of AB 2316.

Now the CPUC has revised its proposed decision and admits it needs guidance on what a successful community solar program looks like:

…the minutes of this proceeding do not provide any details on what could be considered a successful Community renewable energy program. Accordingly, a workshop with the parties to discuss the objectives, methodologies, and metrics for evaluating the Community Renewable Energy Program will include a discussion of what a successful Community Renewable Energy Program would look like, including measures of success and baseline expected megawatts of power for the Community Renewable Energy Program. .

This revised proposed decision states that it is beneficial for payers to impose a customer subscription model and a non-payer-funded add-on on top of standard supply-side tariffs. This “amended” proposed decision still intends to rely on one-time funding from the Environmental Protection Agency’s (EPA) Solar for All program in the form of a grant. CCSA warns against subsidizing an “unworkable program” instead of using private capital “to serve hundreds of thousands of income-eligible customers and small businesses.”

Moreover, the amended proposed decision does not include any details such as the method of allocating external financing between projects and participating clients, reporting requirements, participation process, eligible tariffs, cost recovery mechanisms and others.

According to CCSA, the CPUC is not moving anything forward and is instead “doubling down on efforts by supporting a broken proposal by state utilities that would have led to the collapse of California’s solar program the moment it was delivered.” It will not result in the development of new projects as envisioned in AB 2316 and will continue to leave California without a functional community solar program.”

CCSA highlights the value that community solar can add to California’s grid and help the state achieve both clean energy and equity goals. CCSA believes that continuing with the revised proposed decision would ignore many groups, from the Legislature to a broad coalition of ratepayers and other groups that are seeking a functional, community-based solar program.

An increasing number of states are implementing proactive public solar policies as the market begins to expand. Wood Mackenzie forecasts that in 2022, the number of community solar installations will increase by 118% over the next five years, with at least 6 GW expected to be made available in existing markets between 2023 and 2027.

“California should seize this once-in-a-generation opportunity to create a vibrant marketplace. We urge the CPUC to slow down and take the additional time necessary to make this important decision,” said Derek Chernow, CCSA Western Regional Director.