Environmental groups file lawsuit challenging California’s new solar rooftop policy

Environmental groups filed a petition with the California Courts of Appeal on Wednesday, requesting a review of a new rooftop solar policy they fear could suppress the adoption of these clean energy systems.

The policy, which took effect April 15, reduces the amount of payback new customers can receive when they sell excess electricity back to the grid.

Passed unanimously by the California Public Utilities Commission in December, the ruling enabled the state to revamp its “net energy metering solar tariff.” This mechanism has allowed Californians to get credit on their bills at retail rates and offset monthly energy costs.

“The commission’s misguided new policy violates California’s climate laws and will stifle rooftop solar growth, especially for working-class families,” said Roger Lin, an attorney at the Center for Biological Diversity, in a statement.

Under the new policy, existing solar producers can maintain their current arrangements for 20 years, but future customers will be subject to rates linked to how much electricity is worth at a given time of day, while also paying a fixed monthly fee.

The environmental groups said they proceeded with Wednesday’s legal action “after commission president Alice Reynolds ignored a request to delay the effective date until regulators resolve an appeal the groups filed in January.”

The petition claims that the new policy “will devastate solar adoption rates, especially for working-class Californians.”

The previous net metering tariff “allowed residents to earn a reasonable return” on significant upfront investments, while also generating “societal benefits,” such as an overall reduction in greenhouse gas emissions, according to the petition. 

“California is ground zero for the climate emergency, and it’s outrageous that the commission is slow-walking our renewable energy transition when we need to be racing toward it,” Lin said.

The Center for Biological Diversity filed the suit with the Environmental Working Group and the Protect Our Communities Foundation.

The petition, which requires a response within 30 days, cites the commission as the respondent while also naming California’s three largest utilities.

The utilities were among those pushing for the policy change — arguing the previous system was harming lower-income families, who were paying higher electricity rates to offset the solar subsidy.

But the environmental groups responsible for the petition maintain the new policy will negatively impact those same customers.

Caroline Leary, the Environmental Working Group’s chief operating officer and general counsel, said she believes the change will put “rooftop solar financially out of reach for millions of working families.”

“This will likely result in California becoming more dependent on dirty fossil fuel plants to compensate for electricity shortfalls,” Leary added.

In response to the petition, a spokeswoman for the California Public Utilities Commission said that the Commission “will respond to the lawsuit as part of the litigation process,” adding that it intends to review pending applications for rehearing at its June 29 voting meeting, “barring an unexpected delay.”

— Updated at 10:16 p.m.