The Impact of California’s Change in Renewable Energy Policy

The Decline in Residential Rooftop Solar

California, known as a champion of renewable energy, has recently experienced a decline in the installation of residential rooftop solar panels due to a change in state policies. The new policy, which took effect in April, greatly reduced incentives for homeowners to install solar panels, leading to a drop as much as 85% in rooftop solar installations in California compared to the previous year.

Many companies in the solar industry, including installers, manufacturers, and distributors, are struggling as a result of the policy change. Some companies have even left the state or reduced their presence there. Construct Sun, a solar installation company, ceased operations in California and shifted its focus to other states like Florida, North Carolina, and Ohio.

State officials have defended the policy change, arguing that the previous incentives offered to homeowners with solar panels were too generous and primarily benefited affluent homeowners. They believe the change is necessary to ensure that lower-income individuals are not unfairly burdened with the cost of maintaining the state’s electricity system.

Source: California Has Dealt a Blow to Renewable Energy, Some Businesses Say