1. The debate over rooftop solar through NEM 3.0 in California divided the solar industry, consumer groups, and unions.
2. A new solar policy issue on community solar has united these groups in a new battle for fair access to renewable energy resources.
3. The CPUC rejected a proposal for a Net Value Billing Tariff for community solar, citing conflicts with federal law, despite support from diverse groups and leaders.
The solar industry, consumer groups, and unions in California have come together to support a proposal for a revised community solar program, which aims to make solar energy accessible and affordable for developers, workers, and consumers. Initially, the coalition was formed during discussions on NEM 3.0, and they have continued to work together to address the stalled community solar market in the state.
The proposal, known as the Net Value Billing Tariff (NVBT), aims to compensate subscribers to community solar projects based on the value of the project’s generation at the time it is provided to the grid. The NVBT uses the state’s Avoided Cost Calculator to determine compensation, which includes metrics like environmental value and generation capacity.
Despite strong support for the NVBT, the California Public Utilities Commission (CPUC) rejected the proposal in March, citing conflicts with federal law and requirements under AB 2316. However, advocates argue that community solar connected to the distribution grid should fall under state jurisdiction rather than federal jurisdiction.
While the CPUC has postponed a vote on its proposed decision multiple times, advocates, including state governors and former FERC commissioners, are urging the commission to reconsider and adopt the NVBT. The coalition remains hopeful that the final decision will reflect their proposal and address concerns about the future of community solar programs in California and beyond.