The California Supreme Court is set to hear oral arguments regarding a lawsuit challenging a recent California Public Utilities Commission policy that slashed reimbursements for excess energy generated by rooftop solar panels. Previously, homeowners benefitted from receiving about 40 cents per kilowatt hour, but the new rules reduced this to around five cents, significantly decreasing the economic appeal of solar investments. Advocates warn the changes are detrimental not only to the solar industry, resulting in job losses and bankruptcies, but they also hinder California's climate goals by limiting access to solar for lower-income residents.
The lawsuit stems from an April 2023 policy update by the California Public Utilities Commission that cut reimbursements for excess solar energy, drastically impacting solar economics.
Bernadette Del Chiaro states that the reimbursement cut from close to 40 cents to about five cents greatly reduces the economic viability of solar energy.
Howard Crystal emphasizes that the CPUC regulations make solar investments harder for lower-income Californians, undermining rooftop solar's benefits for new communities.
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