A new California law significantly expands policy incentives for community solar and rewards projects that include battery storage. This means residents who previously could not reap the benefits of solar energy can now participate in a renewable energy program and gain access to clean energy and lower electricity bills.
What Is Community Solar?
Unlike homeowners and businesses that install solar panels on their properties, community solar projects are built on locations like former industrial sites and landfills. Customers who rent or have low incomes then subscribe to a share of the energy these community sites produce.
Community solar energy programs are a proven approach that will help close California’s clean energy gap and bring much-needed relief to millions of residents who face the dual challenges of high housing costs and utility debt.
What California AB 2316 Includes
The Community Renewable Energy Act will be implemented by the California Public Utilities Commission and will be available to everyone in the state served by Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric.
The new program goes beyond standard community solar design, with requirements promoting equity goals:
- At least 51% of subscribers to a community project will need to be designated as low-income in order to avoid having the program favor businesses.
- Projects must be built by workers who are paid prevailing wages.
- Community projects will be connected to the distribution grid, not the larger transmission network, so power is less likely to be disrupted by fire, earthquake, or another natural disaster.
The program doesn’t provide subsidies to help low-income residents subscribe to community solar projects. Rather, people benefit from lower power bills while participating in the program.
AB 2316 calls for the CPUC to approve final community solar projects by summer 2024. The public infrastructures will be funded by private capital, so non-participant ratepayers are not taking on any risk. Additional funding could eventually come from state or federal sources to reduce the cost of projects in communities where air pollution from power plants is an issue.
In addition, the recently passed Inflation Reduction Act will provide tax credits for solar and battery storage projects that meet the criteria mentioned above. It also provides $7 billion for state community solar programs.
California Is Leading the Way in Solar Incentives
Community solar energy projects are designed to help all California residents save on their utility bills while unplugging from “dirty” power and joining the fight against climate change. As the program takes off, the state plans to build the affordable and reliable clean energy sources that are needed to retire fossil fuel-powered plants and pursue a cleaner, safer future.
Simply Solar custom designs and installs solar panels for California home and business owners. For over 20 years, we’ve been the state’s leading solar installation company, ensuring our residential and commercial customers’ properties are equipped with the industry’s finest solar products.
To learn more about community solar, AB 2316, or solar incentives in general, contact us online or call us at (707) 285-7037 today.
