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Supreme Court Weighs Suit Over CPUC’s Deep Cuts to Solar Panel Credits

A decision is expected within 90 days after justices pressed regulators on neglecting pollution reductions for low-income communities in the 2023 rebate overhaul

Solar panels are seen on the roof of a home in San Anselmo, Calif., on Aug. 15.
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Miguel Cornelio of Stellar Solar works on a solar panel installation in North Park on Monday, April 15, 2024 in San Diego, CA. (K.C. Alfred / The San Diego Union-Tribune)
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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.