California Supreme Court Requires New Review of Rooftop Solar Policy

The California Supreme Court has ordered a new review of a controversial policy that reduces the compensation utilities provide to owners of home solar systems. The regulation, implemented in 2022, significantly cut the payments made to homeowners for the excess electricity they generate and send back to the grid. The court's decision revives a legal challenge to the policy, which was previously upheld by a lower court. The ruling requires a more comprehensive evaluation of the policy's impacts on the state's rooftop solar industry and its broader environmental and economic implications. The case has drawn attention from both the solar industry and consumer advocates, who argue that the reduced compensation could slow the adoption of rooftop solar and undermine California's renewable energy goals. The state's utilities, however, contend that the policy helps balance the costs of maintaining the grid and ensures fairness for all electricity customers. The court's order for a new review suggests the need for a more nuanced assessment of the policy's trade-offs and its alignment with California's clean energy objectives.