Solar panels at city facility
Solar panels at a City of San Diego facility. Courtesy of the city

The California Public Utilities Commission has approved a new solar energy program this week that can tap millions of dollars in state and federal funding to aid lower-income communities.

The vote expands the state’s community solar program, which allows low-income customers living in disadvantaged communities to subscribe to a pool of solar projects and receive a guaranteed 20% electricity bill subsidy.

The program allows communities where rooftop solar on private homes is impractical to work with a local non-profit or government sponsor to find locations for solar energy projects.

The action was endorsed by the state’s major utilities, but environmentalists said it didn’t go far enough.

“Community solar projects are a crucial tool for a successful clean energy transition. If done well, these programs should ensure that more Californians can take advantage of the environmental benefits and utility bill savings of solar panels,” said Steven King of Environment California.

But he said the CPUC’s action “fails to provide meaningful improvements to California’s lackluster community solar program.”

The agency said its decision “implements the Legislature’s direction to minimize impacts to customers that do not participate in the new community solar program by prohibiting the program’s costs from exceeding the cost for a utility to purchase the electricity from elsewhere.”

Despite its reputation as a leader in solar energy, California has lagged other states in building community solar projects. As of the end of 2023, California had 163 megawatts of community solar, compared with more than 2 gigawatts in New York and 1.1 gigawatts in Massachusetts.

Chris Jennewein is founder and senior editor of Times of San Diego.