In a move that has drawn the ire of environmental groups, California regulators have adopted new rules that could discourage the growth of rooftop solar installations. Three groups have now filed a petition asking a San Francisco court to review and set aside the California Public Utilities Commission’s policy changes, which reduce the money credited to rooftop solar panel owners for sending excess power they generate into the grid.
The groups argue that the changes, which came into effect last month, will “devastate solar adoption rates” and are in violation of a 2013 state law requiring the commission to encourage the growth of rooftop solar in the state.
The changes were adopted in December after critics, including utilities and ratepayer advocates, successfully argued that the perk was unfair to those without panels. Previously, the state’s rules for so-called “net metering” compensated customers at or near the full retail electricity rate when they sent excess power their solar panels produced to the grid.
However, the new rules only apply to newly enrolled solar customers and lower the compensation to match the rate utilities would have to pay to buy clean power elsewhere. The groups said the new rules slash customer credits by up to 80%, though prices vary by utility and time of day.
The case has been brought by the Center for Biological Diversity, the Environmental Working Group, and the Protect Our Communities Foundation. According to the petition, the new rules also failed to establish a legally required fund to support solar adoption in disadvantaged communities. They argue that the failure to encourage growth undermines efforts to meet state climate goals.
Solar industry trade groups including the California Solar & Storage Association have also been critical of the rules changes, calling them a “step backwards” shortly after the Commission voted last year. The environmental groups said that the changes came amid a multi-state campaign by for-profit utilities to “gut” net metering programs by arguing they shift costs from wealthier solar power owners onto individuals without the panels. They claim that net metering unfairly shifts most of the costs associated with electric grid upkeep to those without solar panels, since solar panel owners have smaller bills and pay smaller fees as a result.
Despite the backlash, the CPUC has yet to respond to the lawsuit in court and is scheduled to consider rehearing petitions related to the rules next month. Representatives for utilities Southern California Edison Co. and Pacific Gas and Electric, two of three utilities impacted by the rules, said they are reviewing the lawsuit but declined to comment. San Diego Gas & Electric Co. didn’t immediately respond to a request for comment.
The environmental groups maintain that the new rules ignore benefits of the programs, including reduced greenhouse gas emissions and increased resiliency from distributed energy production. As the case continues, the future of California’s rooftop solar market remains uncertain.
