California Storage Installation Licensing Rules Suspended as Trial Period Continues

A coalition of clean energy, consumer protection and environmental organizations is celebrating the Sept. 26 issuance of a preliminary injunction that will halt enforcement of a California rule that would severely restrict solar contractors from installing and servicing battery energy storage systems.

A rule approved in April by the California Contractors Licensing Board (CSLB) prohibits licensed solar contractors from adding batteries to existing solar panels or performing maintenance on batteries, including those they previously installed themselves. The rule also prohibits solar contractors from building solar and storage systems above a certain size typical for off-grid homes or commercial customers. This rule was approved by CSLB at the request of the state’s investor-owned utilities and their affiliated union, even though the board’s own investigations found no safety problems or incidents for all residential faucets installed nationwide to date , including 175,000 batteries in California alone.

In its preliminary injunction ruling, the San Diego County Superior Court focused on CSLB’s failure to analyze the economic impact of its regulations. Following the issuance of a preliminary injunction, the CSLB rule is currently suspended while the trial continues.

“We are grateful that the judge recognized the serious harm it would do to small businesses, the loss of green jobs, and the slowing of California’s progress in increasing local energy storage capacity at a critical time,” said Bernadette Del Chiaro, executive director of CALSSA, one of the plaintiffs in the lawsuit .

The plaintiffs argued that CSLB violated state law by failing to properly evaluate the economic and environmental impacts of the new rule. The plaintiffs argued that it would cause immediate and irreparable harm, forcing hundreds of solar contractors to reduce their staff or close altogether, while harming consumers and inhibiting the development of renewable energy storage that is essential to grid reliability and achieving climate goals.

Clean energy and environmental plaintiffs asked the court to prevent this provision from going into effect on October 1, 2024 while their legal challenge is resolved. The motion for preliminary injunction was based on the fact that the plaintiffs were likely to prevail on the merits because CSLB failed to comply with the Administrative Procedures Act or the California Environmental Quality Act for several important reasons, including its failure to consider alternatives or examine the impact economic for small enterprises.

According to the proposal, implementing this rule would cause irreparable damage in the form of loss of business, professional reputation, customer goodwill, employment and disruption of contracted guarantees.

The motion further argues that the preliminary injunction serves the public interest by promoting solar and battery installations, which are critical to expanding renewable energy storage in California to increase energy reliability in the face of wildfires and blackouts and to combat global climate change.

With the regulatory change in place, there simply would not be enough certified electricians to meet the demand for new storage capacity, while there are licensed solar contractors available who have been installing and servicing storage systems for 40 years with an excellent safety record, according to CSLB own research.

The CSLB rule was just the latest attack on solar and rooftop storage in California.

“California keeps saying one thing and doing another when it comes to fighting climate change,” Del Chiaro said. “In just the last two years, California has cut incentives for rooftop solar, banned self-generation on schools and farms, and proposed expensive flat fees that hurt energy conservation and local solar. This must end if we are to move forward as a country, keep energy prices low and prevent future blackouts. “Today’s ruling is a good first step, but there is more damage to undo before California can once again become a clean energy leader.”

New from CALSSA