A new California law expands the policy incentives for community solar and rewards projects with battery storage. Residents who could not previously reap benefits from solar energy now have the opportunity to participate in renewable energy programs and access clean energy with lower electricity bills.
What is Community Solar?
Community solar projects, unlike those that are installed by homeowners or businesses on their properties, are constructed on former industrial sites or landfills. Customers with low incomes or who rent then receive a portion of the energy produced by these community sites.
The community solar energy program is a proven solution that will close California’s energy gap and provide much-needed relief for millions of residents facing the dual challenge of high housing prices and utility debt.
What California AB 2316 Includes
California Public Utilities Commission will implement the Community Renewable Energy Act. It will be available for everyone in California, served by Southern California Edison and Pacific Gas & Electric.
The new program is more than just a standard design for community solar, as it also promotes equity.
To avoid the program being favored by businesses, at least 51% must be low-income.
Workers must be paid the prevailing wage to build projects.
The distribution grid will connect community projects and not the transmission network. This means that power disruptions from fire, earthquake, or other natural disasters are less likely.
The program does not provide subsidies for low-income residents to subscribe to community solar projects. Participants in the program benefit from reduced power bills.
AB 2316 requires the CPUC to approve final community solar projects before summer 2024. Private capital will fund the public infrastructures so that non-participant ratepayers do not take on any risk. State or federal funding may be available to help reduce the costs of projects in areas where air pollution is a problem.
The Inflation Reduction Act, recently passed, will also provide tax credits for solar projects and battery storage that meet the criteria above. It also provides $7 Billion for state community solar programs.
California is Leading the Green Revolution
Californians can save money on their energy bills by participating in community solar projects. They will also be able to stop using “dirty power” and join the fight against global warming. The state will build affordable and reliable sources of clean energy as the program grows. This will allow fossil fuel-powered plants to be retired and a cleaner and safer future to be pursued.
Simply Solar installs and designs solar panels for California homeowners and businesses. For over 20 years, we have been the leading solar company in California, providing the best solar products to our customers.