Rooftop Solar Incentives: Supreme Court Case
- Environmental groups are challenging California's 2022 decision to slash financial incentives for residential rooftop solar panels before the state Supreme Court.
- The policy reduced credits for excess energy sent back to the grid by as much as 80%.
- California boasts over 2 million solar systems, the most in the nation.Environmentalists insist this number must increase to meet the state's goal of 100% carbon-free energy by 2045.
California’s rooftop solar incentives are under fire! environmental groups are battling the state’s cuts to crucial renewable energy programs before the Supreme Court,asserting these changes impede solar expansion and impact disadvantaged communities. This pivotal case, covered by News Directory 3, examines the core arguments: environmentalists highlighting the benefits of rooftop solar, and utilities defending their position on grid maintenance costs. The battle centers not just on financial aspects but also questions concerning the state’s renewable energy goals and potential impacts for consumers. Lawyers and judges debate the legality, with the court expected to issue a ruling within 90 days. Discover what’s next …
California Solar Incentive Cuts Face Supreme Court Challenge
Updated June 4, 2025
Environmental groups are challenging California’s 2022 decision to slash financial incentives for residential rooftop solar panels before the state Supreme Court. The groups argue the policy, implemented in April 2023, undermines the expansion of climate-friendly energy and violates state law.
The policy reduced credits for excess energy sent back to the grid by as much as 80%. Opponents contend the California Public Utilities Commission (CPUC) failed to fully consider the benefits of rooftop solar and ensure its accessibility in disadvantaged communities.
California boasts over 2 million solar systems, the most in the nation.Environmentalists insist this number must increase to meet the state’s goal of 100% carbon-free energy by 2045.
Defending the CPUC’s decision,lawyers from Attorney General Rob Bonta’s office argued the commission,appointed by Gov. Gavin newsom, acted within the law. They sided with major utilities like Southern California edison, Pacific Gas & Electric, and San Diego Gas & Electric.
Deputy Solicitor General Mica Moore argued that credits for rooftop solar owners have become so valuable they create a multi-billion dollar “cost shift” to non-solar customers, driving up electric bills, especially for low-income households.
Critics, though, dispute the “cost shift” narrative. Malinda Dickenson, representing the Center for Biological Diversity and other groups, called it a “red herring,” arguing the CPUC ignored the benefits of rooftop solar, such as reduced infrastructure needs.
Moore countered that the CPUC isn’t obligated to consider all potential benefits.Government lawyers argued the commission has other programs to help disadvantaged communities access solar energy.
Utilities have long maintained that rooftop solar owners don’t pay their fair share of grid maintenance costs, contributing to rising electric bills.
The justices questioned whether a state appeals court erred in deferring to the CPUC’s expertise. Associate Justice Carol Corrigan questioned why the court should defer to the commission’s interpretation of the law.
The court will issue a ruling within 90 days.
Meanwhile,utilities are also lobbying to reduce credits for those who installed solar panels before April 15,2023. Assemblywoman Lisa Calderon (D-whittier), a former Southern California Edison executive, introduced a bill to end the program after 10 years, but later amended it to only affect those selling their homes.
Calderon claims the bill would save electric customers $2.5 billion over 18 years. Edison lobbyist Roderick Brewer urged Assembly members to support the bill, AB 942, to “Save Electricity Customers Billions, Promote Equity.”
The Assembly approved the bill 46-14, sending it to the state Senate.