Following a yearslong legal battle, owners of rooftop solar panels in California have come one step closer to receiving higher reimbursements for the excess electricity they contribute to the grid.
In a major decision that will have wide-ranging ramifications, the state Supreme Court ruled that lower courts must apply greater scrutiny to the actions of the controversial California Public Utilities Commission, according to CalMatters.
In doing so, the court discarded a previous standard that gave the commission's actions a high level of deference.
All seven of the state high court's sitting justices sided with environmental advocates in establishing the elevated standard of review.
The case will now be sent back to the lower court, which must apply the new legal standard in reviewing the CPUC's actions.
Under previous CPUC rules, homeowners with solar panels were paid the same price for the electricity they contributed to the grid as they paid for the energy they took from the grid, per CalMatters.
However, in 2022, the CPUC established new rules that only required utilities to reimburse homeowners in the amount that the utility would have paid for such electricity on the wholesale market.
The end result was homeowners receiving significantly less money for their excess electricity, a move that critics argued made installing solar panels less affordable for many homeowners, especially those in low-income areas.
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As a result of the change, California saw an 82% reduction in requests to connect home solar systems to the electrical grid, according to CalMatters. This meant that the state lost out on the excess power the unconnected rooftop solar systems generated.
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The upfront cost 💰 In this case, the Center for Biological Diversity, one of three environmental groups that brought the case challenging the CPUC's reimbursement rules, applauded the Supreme Court's ruling.
"I'm relieved to see the state's highest court rein in this runaway commission, which is putting corporate utilities ahead of Californians' pocketbooks, the climate and the law," Roger Lin, a senior attorney for the Center, said in a statement. "I hope this ruling prompts regulators to craft a new rooftop solar policy that's in the public interest rather than padding fossil fuel utility profits."
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The Environmental Working Group, also a party to the case, echoed those sentiments.
"For too long, [the CPUC commissioners] really have operated in a black box behind a shroud of complexity," said Bernadette Del Chiaro, a lawyer for the Environmental Working Group, per CalMatters. "Consumers and the planet have consistently lost out as a result of that."
While the Supreme Court ruling does not guarantee that the lower court will side with the environmental groups in deciding that the current reimbursement policy violates state law, the new, more stringent standard will now apply to all future cases challenging CPUC actions.
This will make it easier for plaintiffs to challenge CPUC actions in court.
"We look forward to spotlighting just how illegal and out of step with California the CPUC has become," Del Chiaro said in a statement.
Regardless of what the lower court decides, installing rooftop solar panels can lower electricity bills to practically nothing while also reducing planet-heating pollution.
EnergySage offers free online tools that make it easy to compare quotes from vetted local installers and to take maximum advantage of tax credits and other financial incentives, saving customers as much as $10,000.
While solar-panel installations do require a significant upfront investment, those looking to help the environment while locking in low energy rates can lease solar panels for no money down through Palmetto's LightReach solar panel leasing program.
Taking things a step further, installing an electric heat pump saves an average of $400 per year on energy costs. To learn more about heat pumps and to explore installation options in your area, Mitsubishi has a free website that offers a wide range of useful information.
In order to qualify for the 30% federal tax credit on home solar and other energy-efficiency upgrades, projects must be completed in full by Dec. 31, 2025. This means you must act fast to take advantage of the savings.
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