Statement: California utility commission sides with utilities in community solar decision

Lackluster CPUC decision fails to establish path for robust community solar development 

SACRAMENTO, Calif. — By a 3:1 vote, the California Public Utilities Commission (CPUC) finalized a plan Thursday to update the state’s community solar energy programs. The decision fails to provide a foundation for sustainable and scalable community solar development. The CPUC’s approved plan opted for minor changes to existing community solar programs, which have failed to develop substantial renewable energy capacity, rather than reimagining a new program.

The CPUC approved a proposal that largely sides with California’s major utilities over a broad coalition of environmental and environmental justice groups, solar developers, ratepayer advocates and more. California’s existing programs have only resulted in less than 600 megawatts of large-scale distributed solar power to date, compared to a total of 6.2 gigawatts in the 22 states with policies that support community solar programs. Moving toward a new program, such as a net value billing tariff, is more likely to spur the significant development necessary for community solar programs to sustain California’s energy needs.

Community solar panel installations are mid-sized projects, often located on large rooftops or parking lots, that allow nearby residents to purchase shares of the project. Participants receive bill credits for the clean energy that community projects produce and therefore save on their energy bills. This arrangement provides renters and lower-income Californians the opportunity to benefit from local solar energy without requiring a large upfront investment or owning a house with a suitable roof for solar panels.

The proceeding was a response to the legislative directives of AB 2316, which required the CPUC to review its existing community solar programs. Assemblymember Chris Ward, the author of AB 2316, said the CPUC’s proposal had “fatal flaws” in public comments during the voting meeting Thursday.

In response, Environment California clean energy advocate Steven King released the following statement: 

“Community solar projects are a crucial tool for a successful clean energy transition. If done well, these programs should ensure that more Californians can take advantage of the environmental benefits and utility bill savings of solar panels. It’s disappointing that the CPUC’s decision fails to provide meaningful improvements to California’s lackluster community solar program. We must reimagine how we incentivize the deployment of solar panels and take advantage of all the space in our built environment. Utilizing spaces such as rooftops, parking lots, and roadside land for generating solar power is essential to address the climate crisis and reach 100% clean energy as soon as possible.”