California's Solar Industry Faces Crisis Following Rate Cut

Policy change leads to plummeting demand, job losses, and concerns over state's climate change goals

California's Public Utilities Commission slashed the rate utilities pay homeowners with new solar panels for surplus power by about 75% in late 2022, causing a significant drop in consumer demand for residential solar.
Since the new rate took effect, solar companies have reported being pushed to the brink, leading to layoffs and shutdowns.
Experts are concerned that the decline in solar demand could hinder California's fight against climate change. The state aims to switch to 90% carbon-free electricity by 2035 and 100% by 2045, with large-scale and rooftop solar projected to provide more than half of the grid's power by 2045.
Following the imminent change in payments, there was a surge in homeowners applying for solar connections, but this was followed by a 90% decline in May 2023 compared to May 2022. Overall, about 82% fewer customers applied for solar connections from May through November 2023 compared to a year earlier.
As many as 17,000 solar workers in California might have lost their jobs by the end of 2023 due to the new rule's impact on the solar industry.