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California’s Rooftop Solar Rules in Limbo After State Supreme Court Ruling

CALIFORNIA, AUG 7 – The Supreme Court found the lower court used an incorrect legal standard and ordered a review of the 2022 ruling that cut solar payments by about 75%, affecting solar adoption and jobs.

  • On Thursday, the California Supreme Court directed the state’s Court of Appeals to reconsider the California Public Utilities Commission’s NEM 3.0 decision, citing improper deference to regulators.
  • Shortly after NEM 3.0 went into effect in Spring 2023, three environmental groups sued the California Public Utilities Commission over a decision to cut rooftop solar payments by about 75%.
  • Proponents of NEM 3.0 claimed rooftop solar causes an $8 billion cost shift, while an independent analysis found a $1.5 billion savings in 2024.
  • The Court of Appeal will rehear the case to determine whether the California Public Utilities Commission had legal basis for its cuts, applying a less deferential standard as instructed by the justices.
  • Future rulings could determine if rooftop solar expansion aligns with California’s clean energy goals, as critics say the NEM 3.0 decision undermines consumer choice and grid stability.
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California Supreme Court hands victory to rooftop solar panel owners

Justices reversed a decision upholding cuts to solar panel owners by 75 percent. A lower court must now revisit the net metering decision.

·Sacramento, United States
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biologicaldiversity.org broke the news in on Thursday, August 7, 2025.
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