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.
18 Articles
18 Articles
California’s rooftop solar rules in limbo after state Supreme Court ruling
A controversial overhaul of rooftop solar regulations instituted more than two years ago by the California Public Utilities Commission will get another look after the state Supreme Court on Thursday sided with a trio of environmental organizations. The high court sent the third iteration of the state’s net energy metering tariff program, colloquially known as NEM 3.0, back to the state appeals court. All seven justices determined an earlier deci…
California Supreme Court sides with environmental groups in rooftop solar case
The California Supreme Court sided with environmental groups in a Thursday ruling, saying that state lawyers were wrong in their claim that the Public Utilities Commission's decision to slash rooftop solar incentives could not be challenged.
California Supreme Court Rejects Deference to Regulators on Rooftop Solar Rollback
Center for Biological Diversity: SAN FRANCISCO— In a victory for renewable energy, the California Supreme Court ruled today that an appeals court should not have deferred to state utility regulators who decided the latest rooftop solar policy complies with state law. The updated policy slashed the credit new solar users get for sharing excess energy with the grid.
CALIFORNIA SUPREME COURT HANDS VICTORY TO ROOFTOP SOLAR PANEL OWNERS
solar panelsCalifornia Supreme CourtGreen SceneBy Malena Carollo, CalMatters This story was originally published by CalMatters. Sign up for their newsletters. Photo: rooftop solar panels on a home in the Rockridge neighborhood of Oakland, on Feb. 18, 2020. Photo by Anne Wernikoff for CalMatters August 7, 2025 (Oakland) - The California Supreme Court today sided with environmental groups in a case seen as pivotal for the proliferation of rooftop…
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