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Net Metering for Solar Owners Suffers Defeat in California Courts

The court ruled that California's net metering tariff cuts meet legal standards despite a 77% to 85% decline in residential solar sales, supporting utility cost-sharing claims.

  • On Monday, the California First Appellate District Court of Appeals upheld the 2022 net metering reductions, with a three-judge panel affirming the California Public Utilities Commission's decision to cut payments by about 75%.
  • The California Public Utilities Commission reduced payments after investor-owned utilities claimed rooftop solar customers didn't pay their fair share of grid maintenance costs, shifting expenses to non-solar ratepayers.
  • Petitioners including the Center for Biological Diversity, Environmental Working Group and Protect Our Communities Foundation challenged NEM 3.0; the California Supreme Court remanded the case last August for deeper review.
  • A November 2023 report from the California Solar and Storage Association linked NEM 3.0 to a 77% to 85% drop in residential solar sales, marking a steep market downturn.
  • CPUC spokesperson Terrie Prosper said Tuesday regulators view the ruling as vindicating clean-energy goals, while Gov. Gavin Newsom recently announced an upcoming utilities commission leadership change amid affordability concerns.
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Solar panel reimbursements to remain low under California appeals court ruling

An appeals court panel sided with utilities and regulators who cut power reimbursement rates to solar panel owners in 2022.

·Sacramento, United States
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Utility Dive broke the news in on Tuesday, March 10, 2026.
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