California Supreme Court Orders New Review of Rooftop Solar Policy

The California Supreme Court unanimously ruled that courts must apply a less deferential standard when reviewing the state's Public Utilities Commission (CPUC) decision to reduce payments to rooftop solar panel owners under the net energy metering program. The ruling reversed a lower court's decision that had upheld the CPUC's 2022 policy rollback, sending the case back to the appeals court for a more thorough legal review on whether the commission exceeded its authority. Environmental groups, including the Environmental Working Group and the Center for Biological Diversity, hailed the decision as a major victory, arguing that the policy has severely hindered solar adoption and harmed low-income communities. The CPUC and utility companies had justified the reduction by citing the need to prevent non-solar customers from subsidizing the grid and to encourage battery storage adoption. The Supreme Court emphasized that the CPUC is not above the law and must be held accountable through fair judicial scrutiny rather than the previous overly deferential approach. This ruling could potentially restore stronger rooftop solar incentives in California, supporting the state's carbon-free energy goals by 2045.