Particle.news
Download on the App Store

California Appeals Court Upholds NEM 3.0, Keeping Deep Cuts to Rooftop Solar Credits

The ruling defers to regulators on cost‑shift concerns under AB 327, leaving low export credits that have reshaped California’s rooftop solar market.

Overview

  • The First District Court of Appeal rejected a challenge from the Environmental Working Group, the Center for Biological Diversity, and the Protect Our Communities Foundation to the CPUC’s Net Billing Tariff.
  • On remand from the California Supreme Court, the panel found the commission met AB 327 requirements and reasonably addressed the alleged cost shift between solar and non‑solar customers.
  • NEM 3.0, adopted in 2022 and implemented in April 2023, replaces retail‑rate net metering with hourly export credits that reports show are about 70% to 80% lower than prior programs.
  • Industry data since the change point to a steep contraction in residential PV, including sales declines of roughly 60% to 80% and more than 17,000 job losses, as battery attachment rates climb.
  • Solar advocates condemned the ruling as pro‑utility and said they are evaluating a further appeal, while investor‑owned utilities argue the framework protects non‑solar ratepayers.