INTERVIEW: Experts discuss recent advancements in California community solar and AB-2316

A final decision on California’s community solar program is expected by the end of the year if the California Public Utilities Commission continues on its current timeline.

Comments on the cost-effectiveness of program proposals were due this past Monday, while reply testimony is expected by August 10th. Derek Chernow, the Western Regional Director for the Coalition for Community Solar Access (CCSA), expects a proposed decision in September or October and a final decision by the end of the year.

“There’s this huge amount of pressure building on the public utilities commissioner to finally issue a decision, get our Net Value Billing Tariff (NVBT) program up and running, and get these projects deployed quickly and around the state as soon as possible,” said Chernow in an interview with NPM.

“I think it should be spelled out enough so that projects can start to get permitted,” Chernow said, adding that developers should be able to work out details, such as siting and permitting, with utilities. “There may still be an implementation phase or finetuning through that, but that wouldn’t hold up these projects—at least from a planning perspective,” he said.

In September 2022, following the passage of Assembly Bill 2316 (AB-2316), the CPUC was directed to examine the state’s existing community solar program, get rid of the programs that weren’t working, and consider adopting an entirely new program. The bill also required that all community solar projects moving forward would need to serve at least 51 percent of low-income households.

With that stage set, CCSA introduced NVBT, which calls for an uncapped program that permits projects up to 20 MW. NVBT is also the first program designed that would require a 4-hour battery storage system to accompany every project.

“All eyes are on the CPUC right now to make progress on community solar,” said Susannah Churchill, Solar Landscape Western Policy Director, in a separate interview with NPM.

The PUC began processing testimony earlier this year which had been “pretty fast and furious,” Churchill said. However, their June request on cost-effectiveness of program submittals added a slight delay to the timeline.

“Our application is going to be much more likely to bring in dollars if we actually have a workable program that those dollars can flow through which is part of the timing urgency," Churchill said.

“There is a sense of urgency and I say that because we can get a gigawatt of solar plus storage online in just three years with at least eight gigawatts of readily available potential development," Chernow said. "That's a lot cheaper than continuing these gas fired peaker power plants particularly in the LA Basin and urban disadvantaged communities."

Solar Landscape is gaining a foothold in the state as they work to educate commercial real estate owners that once a new program is approved, they can host community solar on their roof to help them meet their ESG goals, unlock new revenue, and engage deeper with their community. They're also focused on seeking sites for rooftop community solar that are in transmission constrained areas to displace polluting gas Peaker plants.

“There is so much potential to unlock for community solar in California,” Churchill said. “We are really excited to move forward with projects quickly. We do think that if the PUC approves a new community solar program by the end of 2023, that we can get rooftop community solar projects built in 2024. We’re very eager to get moving quickly to build clean energy capacity in our cities close to power demand.”

According to the CPUC, California's existing programs, the Green Tariff Shared Renewables Program (GTSR), the Disadvantaged Communities Green Tariff (DAC-GT), and Community Solar Green Tariff (CSGT), have only delivered 163 MW over the last several years.

"We anticipate going from practically no community solar to leading the nation in a couple short years," Chernow said. "I can’t emphasis enough how much we need the PUC to finally adopt the proposal so all this can actually come to fruition. It’s exciting, but everybody is kind of holding their breath until the PUC decides."

*This story was originally published exclusively for NPM subscribers.


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