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I remember when California was a solar leader. I have lived here my entire life. I am a community solar developer proudly headquartered in San Francisco. I love California, but state regulators have made it clear that they don’t love community solar and storage at a time when it’s needed most.
Our state is facing an energy affordability crisis. Utility prices are skyrocketing alongside energy demand. The California Public Utilities Commission has acknowledged that the state will require 6 gigawatts of new non-fossil capacity by 2032 to maintain grid reliability.
A recent independent analysis by Aurora Energy Research found that adding community solar and storage in California could save ratepayers $6.5 billion over 20 years, reduce reliance on out-of-state electricity imports and lower emissions, all while improving grid reliability.
Over the last nine years, my company has raised hundreds of millions of dollars to build community solar and energy storage projects across the U.S. Yet, most of our projects and investments are now being funneled to New York, Illinois, Maryland and other states that have implemented functional community solar programs.
I say “functional” because California does have community solar laws and programs, but the CPUC has consistently implemented these laws in a way that makes it not feasible for community solar developers to participate in the programs.
For those who aren’t aware, community solar programs make it possible for anyone to benefit from solar energy, even if they can’t install panels on their home or business. Subscribers who want to participate sign up and get a credit on their electricity bill that’s related to the solar power generated by small-scale solar projects.
Without any upfront cost to the consumer or the utility, community solar programs can reduce a consumer’s or business’ electricity bill by as much as 20%. In addition to lower electricity bills, successful programs in other states are creating good-paying jobs and tax revenue, as well as boosting grid resiliency at a time when data centers for artificial intelligence are straining demand.
More community solar programs are also incorporating batteries – but not here in California. Adding batteries to community solar transforms daytime solar generators into flexible, high-value energy assets that allow stored solar to be dispatched to the grid during evening peak hours. The ability to dispatch solar power when it’s needed most — day or night — improves grid reliability, reduces dependence on natural gas and lowers utility transmission and system costs (which is one of the main causes of higher electricity prices). Consequently, having a viable community solar program that incorporates batteries is essential for lowering electricity inflation for everyone.
To fix our state’s community solar laws, the California Legislature passed Assembly Bill 2316 four years ago. The law was meant to incentivize solar developers to participate and build more community solar and energy storage projects. Not for the first time, the CPUC interpreted AB 2316 in a way that made it impossible for developers to risk building projects, effectively gutting the program.
It’s not just solar developers blaming the CPUC. At a recent outcome review hearing, members of the Assembly, as well as expert testimony, made it clear that the CPUC did not deliver the program in the way that the Legislature intended.
Unfortunately, when policy stalls, capital moves elsewhere. After AB 2316 passed four years ago, my company was planning to build many more projects in California communities. But because of the CPUC’s misinterpretation, we’re building projects and creating jobs in other states.
California doesn’t need to reinvent community solar. It needs to implement it faithfully, at scale and in line with what policymakers originally envisioned, utilizing roadmaps established in other states across the U.S.
If we do, we can lower costs, strengthen the grid and expand access to clean energy for millions of Californians. If we don’t, we’ll continue to watch other states lead – and take the jobs and investment with them.
Aaron Halimi, of Larkspur, is the founder and CEO of Renewable Properties, a community solar and energy storage developer and independent power producer. From the Marin Independent Journal.
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