February 4, 2022

California regulators have delayed a vote on a controversial proposal to slash incentives for home solar systems as they consider revamping the measure.

California Public Utilities Commission President Alice Reynolds has asked for more time to consider making changes to the plan after getting feedback from solar companies, environmental groups, consumer advocates, utilities and other parties, according to a notice filed Thursday with the regulator.

“This highlights just how politically sensitive this proceeding is and how difficult it is to substantially alter the economics of a cottage industry that has grown to gargantuan proportions,” said Paul Patterson, a utility analyst at Glenrock Associates. 

Analysts with Roth Capital Partners said in research note that the latest development was a “meaningful positive” for residential solar companies including Sunrun Inc., Sunnova Energy International Inc. and SunPower Corp.

California Governor Gavin Newsom last month called for the commission to make changes to the proposal that would sharply reduce incentives and levy new fees for residential solar customers. The plan has drawn fire from solar installers, some environmental groups and other elected officials who say it would decimate California’s residential solar market.

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