CPUC vote expected to keep California community solar from reaching full potential – pv magazine USA

May 31, 2024 Anna Fischer

As expected, the California Public Utilities Commission (CPUC) voted on changes to its utility-backed solar program despite strong opposition from industry groups, local solar developers, and even Assemblyman Chris Ward, who introduced the original version of the bill ( AB 2316).

Community solar enables small businesses and residents who are renters or who are otherwise unable to install solar on their roof to subscribe to a portion of an outdoor solar installation and receive a utility bill credit for the energy generated. In California, approximately 45% of California households are renters who do not own their roofs and therefore cannot install a solar system.

The Community Renewable Energy Act (AB 2316) introduced by Assemblymember Ward was sponsored by the Coalition for Community Solar Access (CCSA) and supported by the Solar Energy Industries Association, GRID Alternatives, Vote Solar, the Sierra Club and more. Notably, investor-owned utilities, which account for more than 75% of the state’s electricity consumption, opposed the bill.

Continuing with the CPUC net metering change that has dealt a major blow to the residential solar industry, developers and other industry experts expect this new regulation to put a brake on the construction of community solar plants in California.

California was previously the leading state in solar energy; however, the situation is turning around. Aaron Halimi, founder and president of Renewable Properties, a local solar developer, said this recent CPUC decision will prevent California from being a leader in community solar. An increasing number of states are implementing proactive public solar policies as the market begins to expand.

Calling the new rules a “misguided decision,” Halimi said the industry is unlikely to invest in building local solar and energy storage projects in California.

“The CPUC’s decision primarily benefits the financial interests of utilities and does not support the state’s climate goals or the goal of lowering electricity bills for low-income Californians, which was the goal of AB 2316,” Halimi said.

Derek Chernow, western regional director of the Coalition for Community Solar Access (CCSA), issued a statement saying the ruling “ignored the will of the California Legislature and a broad coalition of taxpaying, capital, environmental, labor, agricultural and business groups that they have been demanding a functional community solar program for over a decade.”

The legislation passed by a 3-1 majority, and CCSA thanked the lone dissenter, Commissioner Darta Houck, for her vote and comments on why this decision will not realize the full potential of community solar.

The CCSA committee characterized the CPUC’s decision to accept the utilities’ proposal as doubling down on failed programs that “have not created – and will not create – a viable local solar market that would provide affordable energy to Californians who need the help most.”

“It is also further evidence that California utilities are doing everything in their power to suppress distributed generation in order to tighten their control over the state’s power grid. “The vote solidifies California’s position at the bottom of community solar markets across the country, handing leadership to other states to truly democratize solar and achieve national energy equity goals,” CCSA said.