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New Policy Proposal Dims Hopes of Reviving Community Solar in California

Summary

A proposed decision by the California Public Utilities Commission (CPUC) has cast uncertainty over a three-year effort to revitalize California's community solar market. The proposed decision supports major utilities against a coalition of solar industry groups, consumer advocates, environmental-justice organizations, labor unions, and homebuilders. The Net Value Billing Tariff (NVBT), designed to create an affordable and equitable community-solar program as mandated by the 2022 state law AB 2316, faces opposition from the CPUC, which claims it conflicts with federal law. NVBT supporters argue that the decision could undermine California's clean-energy goals, jeopardize federal aid for community solar expansion, and hinder the state's ability to achieve its renewable energy targets. The CPUC's alternative proposals suggest modifications to existing failed community-solar programs, raising concerns among stakeholders about feasibility and effectiveness. The final decision, expected in mid-April, will impact the future of non-utility-scale solar in California and its ability to attract federal funding.

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