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Solar Insure reveals that the financial stability of rooftop solar companies in California is now in question, with a state appeals court recently reaffirming a number of anti-solar decisions.
December 28, 2023 Ryan Kennedy
From pv magazine USA
California Public Utilities Commission (CPUC) approved NEM 3.0 a year ago, which was implemented in April 2023 and resulted in a significant cut in compensation for exported rooftop solar generation.
Months later, the impact of NEM 3.0 is evident with an 80% decrease in installation applications in utility interconnection queues. CALSSA reported a loss of nearly 17,000 rooftop solar jobs, about 22% of the workforce, due to the policy.
Solar Insure reported that 75% of solar installers are now considered “high-risk” following the implementation of NEM 3.0 by CPUC, and they predict another wave of solar installer bankruptcies in Q1 2024.
CPUC’s ruling in favor of private investor-owned utilities despite public protest and industry warnings has led to devastating consequences, but the decision has been upheld by the Court of Appeal of the First Appellate District.
The impact of these decisions is not only felt economically, with job losses and bankruptcies, but also raises concerns about the legislative foundations of the CPUC board and the state’s electricity prices, which have sharply risen.
As a result of these market conditions, there has been a rise in “grid defection,” where customers cut the cord and rely on their own solar assets to power their home.