California has a reputation as a clean energy hot spot. But when it comes to community-based solar that serves multiple households, the state hasn’t found its footing. That could be a problem for President Joe Biden’s climate agenda, given California’s outsize role in the country’s solar market, writes Jason Plautz. Earlier this year, the Energy Department set a goal for community solar developers — whose customers can include renters and cash-strapped households — to more than double the nation’s installed capacity by next year. Advocates are now putting pressure on California’s public utility commission to beef up incentives for community solar developers. They say the state’s current program is too hard for both developers and customers to understand, with burdensome caps on how much utilities can build and restrictions on who can draw electricity from individual projects. A proposal to revamp the program — which is pending before the commission — would alter how developers and customers are compensated and how project enrollments are capped. But solar advocates say it doesn’t go far enough. The lobbying campaign against the policy includes former leaders of the Federal Energy Regulatory Commission. New York Democratic Gov. Kathy Hochul and Biden’s climate adviser, John Podesta, have also reached out to California leaders to discuss the proposed changes, according to multiple people familiar with the discussions. A vote had been scheduled for today, but the commission punted to the end of the month at the earliest. Community solar backers hope that the delayed vote means there will be time to strengthen the proposal. The stakes: Community solar is considered a key component of the nation’s solar build-out. Unlike rooftop panels that serve one home, community projects generate electricity from a moderate-sized solar array for a group of customers in a geographic area. That makes solar power available for renters, homeowners who can’t afford rooftop panels and homes with physical limitations. Plus, the projects can be financially structured in a way that does not require hefty upfront costs for customers. Subscribers pay a monthly fee and then get credits on their electric bills when excess power goes back to the grid. In states like California that are setting stricter pollution limits for residential buildings, community solar projects can also help developers meet those requirements without installing solar panels on every roof.
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