SAN FRANCISCO, CA., 8/14/25 – In a pivotal decision for California’s renewable energy landscape, the California Supreme Court has ruled in favor of environmental groups regarding rooftop solar power compensation.
This unanimous decision compels a lower court to reassess a controversial ruling that reduced payments for solar panel owners who sell excess energy back to utility companies.
Although the justices did not directly address the legality of the changes to the solar compensation program, they emphasized the need for a thorough review.
Bernadette Del Chiaro, vice president for California at the Environmental Working Group, interpreted the ruling as a clear signal that the lower court’s previous ruling was inadequate.
At the heart of the matter is a decision made by state regulators in 2022 which slashed payments to solar panel owners by approximately 75%.
This change aimed to lower bills for all customers while still promoting renewable energy adoption.
However, three environmental organizations — the Center for Biological Diversity, The Protect Our Communities Foundation, and the Environmental Working Group — argued that the state utilities commission overlooked crucial considerations about benefits to customers, especially disadvantaged communities.
Roger Lin, senior attorney for the Center for Biological Diversity, stated, “We don’t need [to be in] an affordability crisis if we have more local generation.”
The program in question, known as
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