New Bill Seeks to Salvage Rooftop Solar for Working Class in California

Backed by two climate action groups, Democratic state lawmakers in California on Tuesday launched an effort to reverse the damage done by state regulators last year when they slashed incentives for residents to install rooftop solar panels—wreaking havoc on the once-thriving industry even as the state faces an energy crisis.

Introduced by state Assemblymembers Laura Friedman (D-44) and Marc Berman (D-23), Assembly Bill 2256 would unwind the policy put in place last year by the California Public Utilities Commission (CPUC), which was supported by the state's three investor-owned utilities and sharply reduced the amount utilities pay people with solar panels when they sell surplus power to the grid.

The policy applied to homeowners as well as renters in disadvantaged communities, and critics warned it would put solar panels even further out of reach for low- and middle-income Californians.

A.B. 2256, sponsored by the Center for Biological Diversity (CBD) and Environment California, would require the CPUC to "consider the wider community benefits of rooftop solar" in its policymaking, said CBD.

"This bill will force state regulators to stop shirking their duty and consider renewable energy's wide-ranging benefits so rooftop solar is available to everyone," said Roger Lin, a senior attorney at CBD. "The commission's decision to tank the state's rooftop solar policy was a gift to corporate utilities and a gut punch to communities and our environment. We're in a climate emergency, and it's reckless for the commission to ignore the harm fossil fuels do to our health and environment when it's making energy decisions."

Ken Cook, president of the Environmental Working Group (EWG), said earlier this month that "rooftop only pencils out for the wealthy" under the CPUC policy, which has caused solar companies to lay off 17,000 workers in less than a year and pushed 75% of firms toward bankruptcy.

Rooftop solar power had "been making great strides in low-income communities," state Sen. Josh Becker (D-13) told the San Francisco Chronicle earlier this month, but "this [CPUC decision] makes it harder."

A.B. 2256 was introduced weeks after CBD, EWG, and the Protect Our Communities Foundation asked the California Supreme Court to overturn the CPUC policy following unsuccessful challenges at the commission and a state appeals court.

It also comes a day after Environment America Research & Policy Center and Frontier Group published a report marking the dramatic growth of rooftop solar nationwide over the past decade, with 10 times as much power produced in 2022 than 10 years prior.

California ranked as the state with the largest growth in small-scale solar generation, producing 24,121 gigawatt hours (GWh) in 2022—just before the CPUC policy was introduced. In 2012 the state produced just 2,453 GWh.

"Rooftop solar is good for the environment and consumers," reads the report. "It reduces our dependence on fossil fuels, eases strain on the grid during periods of high demand, can increase resilience to threats like extreme weather, and limits the amount of land needed for clean energy—all at steadily falling costs."

The California Air Resources Board suggested in 2022 that disincentivizing solar power for residents was the wrong direction for the state to go in, saying the state needed to double its rooftop solar to meet its target of reducing greenhouse gas emissions 40% by 2030.

"How can we weigh the costs and benefits of rooftop solar without considering all the benefits to our health, our neighbors, and what's left of our open spaces?" said Lin. "This is not a zero-sum game. We can't ignore our climate, the urgent need for energy justice, and the significant community benefits of rooftop solar and expect to have a fighting chance against climate change."