Overview

• Environmental groups are challenging a 2022 CPUC ruling that slashed solar reimbursements by up to 80%, cutting credits from about 40 cents to 5 cents per kilowatt-hour.
• Plaintiffs argue the commission failed to follow state law by overlooking the environmental benefits of rooftop solar and its positive impact on disadvantaged communities.
• During June 4 oral arguments, several justices questioned whether courts must defer to the CPUC’s cost-shift analysis or require regulators to weigh broader public and equity interests.
• The court is poised to issue a binding decision within 90 days that could overturn or uphold changes affecting 1.5 million California solar households.
• On June 3 the state assembly passed AB942, a bill that would further reduce compensation for excess solar energy and intensify disputes over energy costs and fairness.