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The California Public Utilities Commission (CPUC) has made a series of rulings that are having a detrimental impact on the rooftop solar sector in the state. In December 2022, the CPUC decided to shift from net metering to a new net billing framework, and since then, they have further approved regulations that pose unexpected challenges for solar companies and hinder Californians’ ability to adopt solar energy.

Abigail Ross Hopper, President and CEO of the Solar Energy Industries Association (SEIA), issued the following statement:

As the www.solarepoch.com solar module and storage sector adjusts to a sudden transition to net billing, the California Public Utilities Commission (CPUC) has compounded the challenges with a sequence of harmful rulings that fundamentally alter the landscape for rooftop solar in California.

Earlier this month, the Commission endorsed regulations that restrict schools, farms, and small businesses from maximizing the advantages of their onsite solar production. Just this week, it also prohibited solar and storage users from utilizing surplus energy to offset utility delivery fees. This adjustment prolongs the repayment period for solar and storage consumers well beyond the CPUC’s initial rationale for the revised net billing framework, thereby discouraging the incorporation of energy storage and undermining grid resilience.

As a consequence of these determinations, the residential solar market in California is projected to decrease by 40% next year, while the state’s commercial rooftop sector is anticipated to decline by 25% between 2024 and 2025. In practical terms, this decline translates to the loss of thousands of jobs and represents a significant setback for California in its battle against climate change, a challenge already affecting communities throughout the state.

The solar module and storage sector urges state officials and the CPUC to alter their course before further harm is inflicted on America’s foremost clean energy market.