Legislation Responds to Legislative Oversight Findings and Latest CPUC Inaction; Sets Hard Deadline for a Program That Works
Sacramento, CA — With support from a broad coalition of environmental justice organizations, ratepayer advocates, the building industry, local government, and solar developers, AB 1813 today passed out of the Utilities and Energy Committee. This is a critical step forward for one of the fastest and lowest-cost ways to lower electricity bills for California’s renters and low-income families.
The legislation, authored by Assemblymember Chris Ward (D-San Diego), will require the California Public Utilities Commission (CPUC) to establish a workable community renewable energy program by September 1, 2027. The program must prioritize access and real bill savings for renters and low-income Californians who cannot install rooftop solar.
The bill follows a landmark legislative Oversight Review Hearing convened last month by the Assembly Utilities and Energy Committee, which examined the CPUC’s failure to implement previous community solar legislation. In 2022, the Legislature passed and Governor Newsom signed AB 2316, authored by Assemblymember Ward, directing the CPUC to establish a viable community solar and storage program. The CPUC has yet to make good on this legislative mandate. At the hearing, testimony from state energy agencies, consumer advocates, and industry experts confirmed what the coalition has long argued: the CPUC’s existing program is non-viable, out of compliance with state law, and has failed to launch.
Today’s hearing on AB 1813 comes on the heels of another CPUC proposed decision this month that fell short yet again. The proposed decision makes clear that without a firm legislative mandate and enforceable deadlines, the Commission will continue to delay while renters, low-income families, and small businesses are left behind — paying higher bills and locked out of the clean energy economy.
“California used to be the leader in solar,” said Assemblymember Chris Ward. “In the last four years, about a dozen other states have adopted community solar programs that are moving forward — and California has not produced one new program, one new job, or one new benefit. AB 1813 corrects that.”
“California has had every opportunity to lead on community solar, and the CPUC has squandered it at every turn,” said Derek Chernow, Executive Director of Californians for Local, Affordable Solar and Storage (CLASS). “Nearly half of all California households are renters, and they deserve access to affordable clean energy just as much as homeowners. And the stakes couldn’t be higher: widespread community solar would address the energy affordability and reliability crises facing our state and save all ratepayers $6.5 billion. This legislation has learned from the past: it sets a hard deadline and ensures the CPUC finally delivers what the Legislature has directed. We applaud Assemblymember Ward for his leadership.”
“Forty-five percent of Californians are renters, and over two-thirds of low-income customers rent,” said Matt Freedman, Staff Attorney, The Utility Reform Network (TURN) “Community solar would allow these customers to subscribe to shared facilities and receive real benefits. AB 1813 gives the PUC a chance to do this program right.”
“Community-scale solar and storage can be built in 12 to 24 months unlike larger-scale projects that take years and years,” said Merrian Borgeson, Policy Director, California, Climate & Energy, NRDC. “If California is serious about reliability, affordability, and meeting our climate goals, AB 1813 is the practical, equitable step forward we need.”
Since launching earlier this year, Californians for Local Affordable Solar and Storage (CLASS) has been running a 7-figure surround sound advocacy campaign in support of a viable community solar and storage program in California. Timed with today’s hearing, the group launched the first video ad of its campaign. The new ad features Senator Anna Caballero, community advocates Lucy and Melynda from the Central Valley, CLASS Executive Director Derek Chernow, and California-based staff from Dimension Energy. The ad will run on streaming TV and social media platforms over the coming weeks.
What AB 1813 Does
AB 1813 directs the CPUC to modify the existing Community Renewable Energy Program (CREP) or adopt a new program that: requires a final decision by September 1, 2027; ensures at least 51% of subscribers are low-income customers or low-income service organizations; provides bill credits based on the full avoided costs of community solar and storage, using the CPUC’s own standard methods; supports compliance with Title 24 “New Homes” building codes requiring solar on new construction. The bill also includes program accountability measures including capping projects at 5 MW, with a 4 GW or 7-year program cap; and requiring regular developer reporting and a program evaluation after two years.
The Case for Action
- Nearly half of all California households are renters; 70% of low-income households are renters, and are unable to install rooftop solar in nearly any situation.
- A 2025 Aurora Energy Research study found a 5.4 GW community solar and storage program would generate $6.5 billion in savings over 20 years for all Californians — with no cost shift to non-subscribers.
- Community solar already delivers savings and expanded clean energy access in more than 20 states with over 10 GW of installed capacity. California has built fewer than 34 projects since 2015.
- Subscribers in existing California pilot projects — like West Goshen in the Central Valley — have saved up to $300 per month on electric bills in the hot summer months.
Background
In 2022, the Legislature passed and the Governor signed AB 2316 (Ward), directing the CPUC to evaluate and, if beneficial to ratepayers, establish a statewide community renewable energy program. Instead of adopting the broadly supported Net Value Billing Tariff (NVBT) — backed by ratepayer advocates, environmental justice groups, and labor — the CPUC adopted the utility-backed CREP using inadequate wholesale tariffs and dependent on federal subsidies that are now in jeopardy. While community solar has taken hold in more than 20 states and jurisdictions and has seen over 10 gigawatts installed throughout the nation, the CPUC has spent over a decade failing to deliver a workable program for the nearly half of Californians who rent their homes.
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Californians for Local, Affordable Solar and Storage (CLASS) is a coalition of community solar developers working to expand access to local, affordable clean energy, lower electricity bills for families and small businesses, and create new revenue opportunities for farmers and landowners across California.