California Plans Delay to Solar-Subsidy Reform, ClearView Says

(Bloomberg) -- A California judge proposed delaying reforms to a solar-incentive program that’s helped rooftop systems flourish in the state, according to research firm ClearView Energy Partners LLC.

The draft proposal before the California Public Utilities Commission would extend the deadline by a year to Aug. 27, 2023, according a commission document, ClearView said in a note to clients. The commission didn’t immediately respond to a request for comment. 

The commission is attempting to overhaul the incentive program -- known as net-metering -- that helped make rooftop systems mainstream but has drawn criticism for raising power bills for poor and middle-class Californians. The commission’s initial proposal sparked a fierce debate over how to balance the fight against climate change with a push to bolster social and economic equity.

Read: Fight over solar subsidy tests California’s climate commitment

An earlier proposal risked slowing the growth of solar, an instrumental part of the state’s effort to fully green its electrical system by 2045. That plan would have reduced rooftop incentives by as much as 80% -- and required a new monthly fee for residents who install solar. Research firm Wood Mackenzie said that plan would have cut that market in half by 2024.

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