AB 1260 has support from more than a dozen local and national energy, housing, environmental justice, and ratepayer advocate organizations who believe it can establish a viable community solar program.
Despite California’s former designation as a solar trendsetter, the state has never been able to establish a viable community solar program. The California Public Utilities Commission’s (CPUC) program design left few projects viable under its rules. A recently introduced bill, Assembly Bill 1260, however, promises to create a workable program that brings solar to millions of California ratepayers.
California has struggled for more than a decade to establish a functional community solar program, despite legislative efforts and widespread support from consumer advocates, environmental groups and housing stakeholders. The CPUC’s most recent program design fell short of the legislature’s intent, leaving only a handful of projects viable under current rules.
[Read California’s new community solar program still isn’t working]
California’s current program was approved in May 2024 following the enactment of AB 2316 in 2022. The program reportedly made only minor changes to the previous programs that have failed, and as a result, solar developers are now investing in other states with more viable programs.
The new bill, AB 1260, introduced by Assemblymember Chris Ward (D-San Diego), intends to create a viable program by expanding upon the framework established by AB 2316.
“California needs affordable, clean energy solutions today, not years down the road,” said Assemblymember Ward. “This bill will guarantee that families, renters, and businesses—especially those unable to install rooftop solar—can benefit from local solar power, all while keeping energy costs low for every Californian.”
Supporters of AB 1260 see it as a program that could reignite community solar investment in the state.
“This legislation makes clear what the legislature and the governor intended when AB 2316 passed nearly three years ago,” said Derek Chernow, Western regional director at the Coalition for Community Solar Access (CCSA). “By recognizing the full value that community solar + storage provides to the grid and local communities, we can finally create a workable, cost-saving program that expands access to millions of Californians.”
California has some of the highest electricity rates in the country. According to EnergySage, the average electric rates in California are 33 cents per kWh. AB 1260 intends to lower costs for ratepayers as the bill requires community solar projects to deliver guaranteed bill savings to subscribers, with at least 51% of capacity dedicated to low-income customers.
“This bill, if passed, would lead to a community solar program that could unlock access to a cost-effective source of renewable energy for millions of Californians,” said Lauren Kubiak, senior scientist, California, Climate & Energy at National Resource Defense Council.
Key provisions of AB 1260:
- Guaranteeing affordability by dedicating at least 51% of each project’s capacity to low-income customers, ensuring bill savings for those who need it most,
- Ensuring fair compensation for community solar-plus-storage projects by directing the CPUC to align compensation policies with long-standing principles for distributed energy resources,
- Strengthening energy resilience by requiring utilities to treat community solar + storage like all other distribution-connected energy resources that provide local benefits,
- Expanding energy access by making community solar a functional compliance option for California’s solar-on-new-homes mandate, which will help reduce housing costs while meeting clean energy requirements,
- Creating good-paying union jobs by requiring prevailing wages for workers constructing these projects.
Community solar enables anyone with an electric bill to subscribe to a portion of a solar energy project and receive a credit on their energy bill. It is one way for people to go solar even if they don’t own their own home or if their home’s rooftop is impractical for solar.
According to the CCSA, there are currently 19 states and the District of Columbia with community solar programs, and AB 1260 offers California an opportunity to reclaim leadership in distributed clean energy. The bill has garnered support from more than a dozen local and national energy, housing, environmental justice, and ratepayer advocate organizations, CCSA noted.
“California’s bold clean energy policies require real solutions that work for everyone,” said Chris Ochoa, senior counsel at the California Building Industry Association. “This bill finally gives homebuilders and property developers a practical way to meet the state’s solar mandate while reducing housing costs and delivering reliable, affordable energy.”
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