This story was originally published by CalMatters. California’s utilities regulator recently adopted new rules for community solar projects, despite warnings from clean energy advocates that the move will negatively impact efforts to expand solar power options for low-income customers. The state’s largest utility companies pushed for the new rules. Community solar projects are important for providing solar power to renters and homeowners who cannot afford to install their own panels. These projects are part of California’s overall strategy to transition to renewable energy.
The California Public Utilities Commission’s decision preserves and expands programs that will allow any ratepayer to subscribe to a pool of projects and receive a 20% rate reduction. However, this ruling also reduces future compensation for solar providers and residents. The formula adopted by the commission this week essentially diminishes the value of distributed small-scale renewable energy in the future, providing less incentive for new community solar projects to be developed.
While the subsidies and incentives currently help promote community solar installations, concerns arise about what will happen once the funding runs out. Advocates stress the importance of not relying on one-time money for sustainable programs. The commission’s recent decisions to reduce incentives for rooftop solar and community solar projects have raised concerns about California’s commitment to clean energy.
The Solar Energy Industries Association criticized the CPUC for jeopardizing California’s clean energy progress with recent decisions. Advocates argue that reducing subsidies to the solar industry will hinder the growth of solar installations and prevent low-income ratepayers from benefiting from renewable energy. The commission’s decision was quickly added to the list of concerning moves that some say indicate a backtracking on key renewable energy policies in the state.
