Lawsuit over extra energy reimbursements to solar panel owners heads to CA Supreme Court
SAN FRANCISCO (KGO) -- The California Supreme Court is set to hear the oral arguments Wednesday in a lawsuit that's trying to put more money back into the pockets of people with rooftop solar panels.
The lawsuit stems from an April 2023 policy update by the California Public Utilities Commission.
In the past, people who produced extra energy from their solar panels could send the excess back to the grid and get a credit close to the market rate for electricity.
But under the new rules, the CPUC cut the reimbursement amount, sometimes by as much as 80%.
"Now, what people get is about five cents per kilowatt hour," said Bernadette Del Chiaro with the Environmental Working Group. "So from close to 40 cents down to five cents. You can do the math. That makes going solar way less economical."
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The Environmental Working Group is one of the plaintiffs in the lawsuit. Del Chiaro says the decision has decimated the solar panel industry across the state.
"We've seen the market just totally crater and not rebound," she said. "The solar industry lost 17,000 good-paying jobs and dozens and dozens of companies went bankrupt as a result of this decision."
Besides the economic concerns, others say the CPUC decision also harms the state's climate goals.
Howard Crystal believes the current regulations make turning to solar less viable for millions of Californians, especially those with lower incomes.
"It's going to be much harder for them to make that decision, to make those investments, and we're not going to get rooftop solar to these new communities where they could really benefit," Crystal said.
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But some believe the CPUC ruling doesn't go far enough.
On Tuesday, the state assembly passed a new bill authored by Assemblymember Lisa Calderon that would further cut solar compensation.
Calderon says the way the system is currently set up raises electricity costs for those without solar panels.
"We've got to find a way to make this more equitable and fair," Calderon said.
Crystal argues the old system was fair enough, which is why he's hoping the state Supreme Court will ultimately rule in the plaintiffs' favor in a few months' time.
"There's nothing wrong with rooftop solar," Crystal said. "It's bringing everything positive. It's bringing energy democracy. It's bringing energy to communities."
