California is squandering billions in clean energy potential

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OPINION – Environmental justice communities have long fought against dirty energy systems that poison their bodies and drain their wallets. Since winning equitable solar for renters in 2015 with AB 693, members of the California Environmental Justice Alliance have been dreaming of a clean energy future that puts frontline communities first. Community solar + storage is one steppingstone toward a larger vision for energy democracy, where local communities own and govern their clean energy resources.

Three years ago, the California Legislature passed AB 2316 with a clear mandate: build a community solar + storage program that delivers affordable, equitable, and clean energy to the Californians who need it most. But today, we are still waiting. Why?

Despite growing urgency and available funding, the CPUC has so far failed to deliver a viable program that supports the widespread adoption of community-centered clean energy—especially for the state’s most vulnerable residents. The delay has already cost Californians dearly. Californians have lost $33 million in state funding and have failed to get much of their allocated $250 million in federal Solar for All funding, now eliminated by the Federal government, out the door, because the state lacks a scalable, functioning community solar + storage program.

These dollars were supposed to be transformative. Instead, they may fund only a tiny handful of projects.

Recent research lays bare what’s at stake. It shows that a properly structured community solar + storage program in California would deliver lower energy costs for subscribers, create long-term value for the grid, and empower more families to benefit from solar. The proposed program requires 51% of subscribers to be low-income residents. This means those who were historically disinvested in the clean energy movement will be prioritized in the program.

As an example, frontline communities have already done this visionary work. Communities for a Better Environment (CBE) has led creative solutions right in their backyard, including resilience hubs that provide year-round support for its residents while running on solar and storage. As we implement an equitable State-wide community solar + storage program, we must turn to EJ communities for successful models designed for resilience and community-led solutions.

The stakes are about to get even higher, so we must urge California to double down on equitable, community solar + storage resources. Under new federal law, the 30% Investment Tax Credit begins phasing out as soon as 2026. If we want to maximize the value of remaining federal dollars and ensure low-cost energy solutions are part of our grid, we must prioritize resource that can be deployed quickly, affordably, and at scale.

This isn’t a partisan issue, and it’s not a matter of feasibility. More than 20 other states have shown what works. With a program design based on national best practices, California can finally deliver on the promise of AB 2316. That means creating a structure that allows for local project development and robust savings for subscribers—especially low-income families. It also means treating storage as an integral feature of community resilience and grid reliability.

The good news? It’s not too late.

The CPUC has until January 1, 2026, under AB 2316, to finalize the structure of the Community Renewable Energy Program (CREP)—a program that can still incorporate the full value that community solar + storage brings to the grid. That deadline is growing even more critical as the federal Investment Tax Credit could begin phasing down after 2025, making it harder and more expensive to build clean energy.

Other states are moving forward. Colorado, for example, is channeling $156 million toward community solar and storage projects designed to serve low-income customers. Illinois has similarly secured nearly $160 million to expand community solar access while creating local jobs and lowering bills. California risks falling behind if the CPUC fails to act quickly and decisively for its residents

What should the CPUC do? First, bring stakeholders to the table for a public workshop to align on the best path forward, especially highlighting the benefits and shortfalls that directly impact environmental justice community-based organizations and members. Second, build on its own decision last year by adding clear energy, capacity, and transmission & distribution values into the compensation framework for community solar + storage—just as it does for other distributed energy resources.

We must continue advocating for a resilient energy system that is suitable for local resources while empowering community members and residents. California can lead—but leadership requires action. It’s time for regulators to deliver an equitable clean energy future that Californians deserve.

Feby Boediarto is Energy Justice Manager at California Environmental Justice Alliance (CEJA))