TL;DR
The California Public Utilities Commission has approved the state’s community solar program as written, despite ongoing criticism from solar advocates who call it unworkable. The decision maintains existing pricing structures and limits project development, raising concerns about future growth.
The California Public Utilities Commission (CPUC) has finalized its community solar program, despite ongoing criticism from solar advocates who describe the initiative as “unworkable” and unlikely to succeed. The decision, announced this week, maintains existing pricing structures and limits project development, raising questions about the program’s future effectiveness and impact on clean energy goals.
On June 2026, the CPUC approved the community solar program as proposed, rejecting recent proposals from solar advocacy groups that aimed to support and expand community solar initiatives. The approved program will rely on the existing Renewable Market Adjusting Tariff (ReMAT) pricing structure, which ensures non-participating customers are not billed above the avoided wholesale cost of electricity. This decision aligns with the CPUC’s stated goal of balancing affordability, equity, and grid reliability, but critics argue it perpetuates barriers to project development.
Industry advocates, including Derek Chernow of Californians for Local, Affordable Solar and Storage (CLASS), have condemned the decision, stating that it effectively hands control back to utilities that have historically obstructed community solar growth. Chernow emphasized that the program has resulted in zero projects built, forfeited $250 million in federal Solar for All funding, and failed to deliver promised benefits to ratepayers. Critics also point out that neighboring states have successfully implemented cost-saving community solar programs, which California has yet to replicate.
Legislative efforts to improve the program continue, with the passage of AB 2316 in 2022 requiring utilities to create more inclusive community solar options. However, recent developments suggest that the CPUC’s approach remains unchanged, with industry advocates calling for the passage of AB 1813, a bill that aims to further reform and expand community solar initiatives in California.
Implications for California’s Clean Energy Goals
The CPUC’s decision to approve the community solar program as-is is significant because it may limit the growth of local solar projects and delay the delivery of affordable clean energy options to California residents. Critics argue that the current framework favors utilities over community-led initiatives, potentially hindering efforts to meet state renewable energy targets and reduce energy costs for low-income households. The controversy underscores ongoing debates about how best to structure community solar programs to ensure broad participation and equitable benefits.
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Background on California’s Community Solar Efforts
California’s community solar program was mandated by AB 2316 in September 2022, which required large utilities to develop programs enabling ratepayers to participate in offsite renewable energy projects. Despite this legislative push, the state has struggled to see significant project development, with critics blaming regulatory and utility barriers. In 2024, the CPUC rejected a proposal from solar advocates that would have supported community solar expansion, instead opting to leave decision-making largely in the hands of utilities. Legislative efforts, including the introduction of AB 1813, aim to address these issues, but progress has been slow. Currently, the program remains underdeveloped, with critics warning that the latest CPUC approval risks perpetuating a status quo that has failed to deliver tangible benefits.
“The current program is essentially a continuation of failed policies that have prevented community solar from scaling in California.”
— an anonymous researcher
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Unresolved Questions About Program Effectiveness
It remains unclear how the approved program will perform in practice and whether it will ultimately enable meaningful project development or benefit ratepayers as intended. Details about how utilities will implement the program and whether future legislative changes will alter its trajectory are still emerging. Industry advocates continue to push for reforms, but the long-term impact of this decision is uncertain.
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Next Steps for California’s Community Solar Policy
Legislative efforts, particularly the passage of AB 1813, are expected to be key in shaping the future of community solar in California. Stakeholders will closely monitor how the CPUC and utilities proceed with project development under the current framework. Advocates plan to continue lobbying for reforms that prioritize affordability, equity, and project growth, aiming to ensure that California’s clean energy goals are met through expanded community solar initiatives.
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Key Questions
Why did the CPUC approve the program despite criticism?
The CPUC approved the program as proposed, citing a desire to balance affordability, equity, and grid reliability, and to maintain existing pricing structures, despite criticism that it is unworkable and limits project development.
What are the main criticisms of the current community solar program?
Critics argue that the program is unworkable, has resulted in no projects being built, forfeited federal funding, and is controlled by utilities that have historically obstructed community solar growth.
How might legislative efforts impact future community solar projects?
Legislation like AB 1813 aims to reform and expand community solar programs, potentially overcoming current barriers and delivering more benefits to ratepayers, especially low-income households.
What are the risks of continuing with the current program?
The main risks include slow project development, continued lack of affordable clean energy options, and failure to meet California’s renewable energy targets.
When will we see the results of this decision?
It may take months or years to observe the full impact of the CPUC’s approval, depending on utility actions and legislative developments.
Source: Solar Power World
