CPUC passes through ‘failed’ community solar program, industry advocates say

The California Public Utilities Commission (CPUC) has finalized its community solar program, despite strong opposition from solar advocates who describe it as “unworkable and destined for failure.” The decision emphasizes utility-led implementation and uses existing pricing structures, raising concerns about the program’s ability to deliver affordable solar options for California residents.

This week, the CPUC approved the community solar program as drafted, rejecting proposals from advocacy groups that aimed to improve its accessibility and effectiveness. The program will rely on the existing Renewable Market Adjusting Tariff (ReMAT) pricing structure, which aims to prevent non-participating customers from paying more than the avoided wholesale cost of electricity. Critics argue that the program has previously failed to generate new projects, resulting in the forfeiture of $250 million in federal Solar for All funding, and that it continues to favor utility control over community-led development.

California law, specifically AB 2316 signed in September 2022, mandated utilities to create programs enabling ratepayers to participate in offsite renewable generation, including community solar. However, in 2024, the CPUC rejected a proposal from solar advocacy groups that would have supported community solar growth, instead placing decision-making authority largely in the hands of utilities. Industry advocates and lawmakers have since pushed for legislative measures, such as AB 1813, to strengthen and expand community solar efforts, but the CPUC’s recent decision sidesteps these efforts.

Critics, including Derek Chernow, Executive Director of Californians for Local, Affordable Solar and Storage, argue that the program’s design continues to block project development and fails to deliver on affordability promises, especially for low-income communities. They point out that other states have successfully implemented community solar programs that save consumers money, whereas California’s approach remains stalled.

Implications for California’s Solar Future

The CPUC’s decision to approve the community solar program as written signifies a continuation of utility-dominated control over solar development in California, despite widespread criticism. Industry advocates warn that the program’s failures could hinder California’s ability to meet state renewable energy and affordability goals. The decision also raises questions about whether legislative efforts like AB 1813 will succeed in expanding community solar access and reducing energy costs for underserved populations.

Background on California’s Community Solar Efforts

Legislated in 2022, AB 2316 mandated large utilities to develop community solar programs to expand access to renewable energy. However, in 2024, the CPUC rejected a proposal from solar advocates to support growth, instead prioritizing utility control. Despite ongoing legislative attempts to bolster these efforts, including the introduction of AB 1813, the state’s community solar initiatives have struggled to produce tangible projects or cost savings for consumers. Critics argue that the current approach favors utilities and fails to meet the original legislative intent of broad, affordable access.

“California remains committed to delivering on clean energy options for all customers.”

— an anonymous researcher

Unresolved Questions About Program Effectiveness

It is still unclear whether the CPUC’s finalized program will successfully stimulate new community solar projects in California or if legislative efforts like AB 1813 will be able to override current limitations. The actual impact on affordability, especially for low-income households, remains uncertain as program implementation proceeds.

Next Steps for California’s Community Solar Policy

Legislators are expected to continue efforts to pass AB 1813 and other bills aimed at expanding community solar access. Stakeholders will monitor whether the CPUC’s approval leads to project development and whether future regulatory adjustments are made to address advocacy concerns. The outcome of legislative and regulatory actions over the coming months will determine the program’s future trajectory.

Key Questions

Why did the CPUC reject the advocacy groups’ proposal?

The CPUC rejected the proposal to support community solar growth, citing a preference to keep the program aligned with existing structures and to avoid additional costs or complexities that could hinder implementation.

What are the main criticisms of the current community solar program?

Critics argue that the program has failed to produce new projects, forfeited significant federal funding, and continues to favor utilities over community-led development, limiting access and affordability for ratepayers.

Will legislative efforts improve the program?

Legislators are actively working on bills like AB 1813 that aim to strengthen and expand community solar, but it remains uncertain whether these efforts will succeed in overcoming current regulatory barriers.

How does this decision affect low-income communities?

Critics contend that the current program does little to ensure affordability or access for low-income households, which could prolong energy cost burdens for these communities.

What is the timeline for future developments?

Legislative and regulatory actions are ongoing, with potential new proposals and adjustments expected over the next several months as stakeholders seek to shape the program’s future.

Source: Solar Power World