The tiny town of West Goshen, Calif., was exactly the kind of place that community solar was designed for.
Near Visalia, most of its 500 residents live in mobile homes, where companies won’t install rooftop panels without a solid foundation. And until recently, they used propane for heating and cooking, with price fluctuations in the winter posing hardships for low-income families.
Community solar, in which residents get a discount on their bills for subscribing as a group to small solar arrays nearby, was designed to help low-income residents, apartment dwellers, renters and others who can’t put panels on their own roofs.
Over the last 11 years, New York, Maine, Minnesota, Massachusetts and other states have built thriving community solar programs. But California has built, at most, only 34 projects since 2015, and experts say that’s a generous accounting.
“We’ve had community solar for a dozen years, and it simply has not produced anything of scale and anything of note,” said Derek Chernow, director of Californians for Local, Affordable Solar and Storage, a developer trade group that’s pushing to get a more robust program off the ground. “Projects don’t pencil out.”
The West Goshen residents were among the lucky few, becoming part of a community solar project in 2024.
“It has kind of allowed us to kind of breathe a little bit,” said resident and community organizer Melinda Metheney. Her bill has dropped by about $300 in the summer months, thanks to the 20% community solar discount, stacked with other low-income discounts and clean energy incentives, she said.
West Goshen’s panels sit about 10 miles out of town, in a field surrounded by farms. Energy and climate experts agree California must add much more clean energy to its grid, some 6 gigawatts by 2032, the California Public Utilities Commission said in a new plan last week.
Assemblymember Christopher M. Ward (D-San Diego), who in 2022 authored a bill to create a more effective community solar program, said the state needs to double its annual solar installation rate to reach that goal and is not on track to do that using only large utility-scale solar farms and individual rooftop arrays.
“We need mid-scale community solar,” he said.
He and a coalition of environmental groups, solar developers and the Utility Reform Network, a ratepayer advocacy group, worked to put his 2022 law into effect. They coalesced around requiring utilities to pay community solar developers and customers for the electricity they feed to the grid using the same formula they use for people who install rooftop solar.
But in May 2024, the California Public Utilities Commission decided to go with a late-in-the-game proposal backed by the state’s investor-owned utilities to pay community solar at a lower rate.
The agency, along with its public advocate’s office, argued that crediting solar developers at the higher rate would raise bills for customers who don’t have solar, who would still have to shoulder the cost of grid maintenance. It’s similar to the argument they’ve made to cut incentives for rooftop solar.
The new program relied on federal money, including the Biden administration’s Solar for All, to sweeten the deal for developers. But the utilities commission spent very little of the $250 million available under that grant before the Trump administration tried to claw it back last summer, and now it is held up in litigation.
At a legislative oversight hearing last week, Kerry Fleisher, the commission’s director of distributed energy resources, blamed the loss for the new program’s failure to launch.
“There’s been a tremendous amount of uncertainty in terms of the Solar for All funding that was intended to supplement this program,” Fleisher said. “That’s part of the reason why this has taken longer than normal.” She said the commission still plans to release a program in the next several months.
Ward, the San Diego lawmaker who wrote the community solar bill, called the program “fatally flawed” in an interview.
He’s now considering a bill to bring the community solar program more in line with what he initially envisioned — higher incentives, requirements for battery storage, and compliance with state law that mandates new houses be built with solar.
A study last year funded by a solar trade group found that could save California’s electric system $6.5 billion over 20 years. But Ward’s effort to revive his program last year failed to pass the Assembly appropriations committee.
“All the other states in our country that have adopted similar community solar program models, they are working,” said Ward, adding that 22 states have programs comparable to the one solar advocates want in California. “The writing on the wall suggests that, exactly as we feared years ago, this was not the way to go.”
California Public Utilities Commission spokesperson Terrie Prosper called California “a leader in cost-effective, least-cost solar deployment overall compared to any other state,” in an emailed statement.
Under the commission’s definition, the state has brought on 34 projects, representing 235 megawatts of community solar. But studies from groups such as the Institute for Local Self-Reliance and Wood Mackenzie use different definitions for community solar, and they show California far behind at least 10 other states.
Meanwhile, advocates and developers involved in successful community solar projects in California say they were difficult to get off the ground.
One that came online in May in the unincorporated communities of Bassett and Avocado Heights in the San Gabriel Valley provides solar electricity to about 400 low-income residents. They get 20% discounts on their electric bills for subscribing to panels installed on two Extra Space Storage building rooftops in Pico Rivera.
Organizers said it took nearly five years to find the right location and comply with utility requirements. They also got a grant in addition to funding provided by the state utilities commission’s solar program.
It “would not have happened if it hadn’t been for the grant,” said Genaro Bugarin, a director at the Energy Coalition nonprofit that proposed and coordinated the project.
Brandon Smithwood, vice president of policy at Dimension Energy, the developer for the project in West Goshen, said he still hopes to see a community solar program in California that compensates projects for the way they help out the grid.
“We’ve seen it can work, and we know what we have won’t work,” Smithwood said at the hearing.
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