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California Community Solar Update

In this episode – California Community Solar Update . . .

Today, we're diving into the ongoing saga of Community Solar in California. As you might know, the California Public Utilities Commission (CPUC) has been grappling with how to regulate this growing sector. The program is poised to launch in July of 2024,  however . . . 

Net Energy Metering (NEM 3) and the Rooftop Solar Impact:

Let's rewind a bit. In December 2022, the CPUC issued a controversial decision called NEM 3. NEM stands for Net Energy Metering, and NEM 3 is the third iteration of this program. Here’s the big issue – NEM 3 significantly reduced the credit that rooftop solar users' received for feeding excess energy back to the grid.

This decision primarily affects those who install solar panels after April 2023. While NEM 3 doesn't directly impact Community Solar, it's an important context because it highlights the CPUC's ongoing efforts to balance the economics of solar power.

So what’s the Hold-Up?

The bigger story for today is Community Solar. This program allows Californians who can't install rooftop panels to subscribe to a solar farm and receive bill credits based on their share of the energy produced. It's a great way to expand access to clean energy, especially for renters and low-income residents.

As you might expect, the CPUC's proposed decision on Community Solar has been met with strong opposition, primarily from the utility companies. Critics argue it creates unnecessary hurdles for project development, hindering the program's growth.

Here are a few key concerns:

Net Value Billing Tariff (NVBT) Dispute: The proposed decision rejects the NVBT, a key design element that allows community solar projects to compete fairly in the electricity market. Opponents argue that this stifles innovation and limits Californians' options.

Low-Income Impact: Critics worry the proposal weakens support for low-income communities. Community Solar is crucial for expanding clean energy access to these residents, and a complex program discourages participation.

The Road Ahead:

The future of Community Solar in California remains to be determined. Here's what we know – A lawsuit challenging NEM 3 is headed to the State Supreme Court. The outcome could impact the broader regulatory landscape for solar power, including Community Solar.

The California Public Utilities Commission is revising its Community Solar proposal to respond to public feedback, and negotiations are ongoing.

Stay Informed:

The situation is fluid, and a final decision on Community Solar is yet to come. We recommend checking resources from organizations like the California Solar & Storage Association or the Coalition for Community Solar Access to stay current.

National Community Solar Programs Tracker: The Institute for Local Self-Reliance resource provides a detailed state-by-state breakdown of Community Solar programs, including legislation and project details (click the above link).

The Takeaway:

Community Solar holds immense potential for expanding clean energy access in California. While the CPUC's current proposal faces challenges, advocates are pushing for a program that's fair, accessible and promotes a thriving solar future. My listening friends, On the Fly, is about whatever comes to mind, and we will continue monitoring developments to keep you informed.

I'm Patrick Ball; thanks for listening. See you in the next episode.

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