The California Public Utilities Commission (CPUC) has issued a proposed decision that rejects a plan to bolster the state’s community solar market and instead approves a utility-backed alternative. Here are two pertinent pages from the order:

In late 2022, California passed AB 2316 (Ward), which directs that at least 51% of subscribers be low-income customers, triggering at least a 40% federal tax credit on solar installations under the federal Inflation Reduction Act. It also requires paying prevailing wages for workers, triggering a separate 30% federal tax credit for storage installations, also under the IRA. It also required CPUC to review existing customer renewable energy subscription programs.

However, in its proposal, CPUC says that while language about community solar programs was included in the preamble of AB 2316, “it is not listed as one of the specific evaluation goals outlined by the Legislature in Public Utility Code Section 769.3(b)(1).” Public Utility Code Section 769.3(b)(1) requires the Commission to “evaluate each customer renewable energy subscription program,” to determine “if the program meets all of the following goals”: (i) efficiently serves distinct customer groups; (ii) minimizes duplicative offerings; and (iii) promotes robust participation by low-income customers.

Parties have twenty days to submit comments on the proposed decision. After opening comments and replies have been submitted, a revised proposed decision will be issued and the Commission will vote on whether to adopt it by the Commission’s April 18 business meeting at the earliest.

Reaction to the widely anticipated decision has been rolling in. You’ll find a collection below this fancy separator, and we might add some more as they arrive in our inboxes.

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“This is a significant misstep in a string of head-scratching CPUC decisions that are crushing California’s clean energy progress and preventing thousands of households from accessing the benefits of solar energy,” said Stephanie Doyle, California State Affairs Director for the Solar Energy Industries Association (SEIA). “The state legislature made it clear in passing AB 2316 that it wants a robust program to provide community solar to low-income Californians and to support grid resilience for all ratepayers. This proposed decision, if adopted, will harm those efforts and risk California missing out on crucial federal funding by approving a utility-backed alternative that is unlikely to be commercially viable.”

“The solar and storage industry is shocked by the CPUC’s apparent determination to deny an opportunity to take a step forward as a community solar leader,” Doyle continued. “We continue to review the proposed decision and will keep working toward solutions that deliver the clean energy that Californians are demanding.”

“The proposed decision would not adopt the Coalition for Comm