California Public Utilities Commission Policy Shift Causes Significant Decline in Residential Solar Demand and Job Losses
The California Public Utilities Commission (CPUC) implemented a policy change in late 2022 that slashed the rate utilities pay homeowners for surplus solar power by approximately 75%. This new rate structure took effect for solar applicants starting last April, leading to a dramatic decline in consumer demand for residential solar installations. Data from May through November of last year showed an 82% decrease in solar connection applications compared to the previous year, with a 90% decline in May alone. This policy shift has severely impacted the solar industry in California, the largest solar market in the country, resulting in significant job losses, estimated at up to 17,000 solar workers by the end of last year. Companies are facing layoffs and even closures, with some installers reporting sales plummeting from hundreds of deals to just one in a month. 
