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California bills make plug-in and community solar easier
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Two bills passed by the California Legislature are now on Gov. Gavin Newsom’s desk that would legalize plug‑in “balcony” solar and require a more robust community solar program to expand access for renters and condo residents, as first reported by the Los Angeles Times. One study cited by backers estimates adding 5.4 gigawatts of community solar and storage could lower system costs by about $6.5 billion. The measures on the governor’s desk are Assembly Bill 1813 (community solar reform) and Senate Bill 868 (plug‑in or balcony solar); a separate measure, SB 913, would count bundled customer devices such as batteries toward grid reliability.
California’s clean energy transition should benefit everyone, not just those who can afford rooftop solar.
Assemblymember Chris Ward (D‑San Diego)
Key takeaways
- Bills passed: Assembly Bill 1813, Senate Bill 868 and SB 913 passed the Legislature and now await Gov. Gavin Newsom’s decision.
- Potential savings: A study cited by supporters estimates 5.4 gigawatts of community solar plus storage could save California ratepayers about $6.5 billion.
- Plug‑in solar condition: SB 868 legalizes plug‑in 'balcony' solar but includes an end date and requires certification by a nationally recognized testing laboratory such as UL Solutions.
Table of contents
What the two bills would change
AB 1813 directs the California Public Utilities Commission to design a stronger community solar program that developers and advocates say would serve renters, people in condos and others without rooftop access. The bill aims to set compensation that more fully reflects the value community arrays deliver to the grid, particularly during hot, high‑demand periods.
SB 868 removes legal barriers to small, plug‑in photovoltaic systems — often sold as balcony or patio panels — allowing people to plug certified units into wall outlets to offset household consumption. The law includes an end date that requires reauthorization before 2030 for the temporary allowance inserted by Pacific Gas & Electric, and it conditions full implementation on safety certification by a nationally recognized testing laboratory such as UL Solutions.
Why supporters say the reforms matter
Backers argue the two bills broaden who can benefit from distributed solar. Developers, environmental groups and the Utility Reform Network have long pushed for a community solar model that prioritizes people who cannot install rooftop panels and that credits projects for grid benefits they provide.
Proponents point to modelling — cited in legislative debate — showing system‑level savings if the state adds 5.4 gigawatts of community solar paired with storage; that analysis put the gross benefit at roughly $6.5 billion by cutting costs for gas generation, imports and transmission. Supporters say those savings would lower bills for participants and, they argue, for all ratepayers over time.
Utilities’ objections and the cost debate
Investor‑owned utilities and the Public Advocates Office oppose AB 1813 as drafted. Pacific Gas & Electric and Southern California Edison told legislators the bill could shift costs to customers who do not participate; the Public Advocates Office quantified that potential shift at about $1.5 billion annually, or roughly $12 extra per month on average for non‑participants.
PG&E also pressed legislators on safety and market rules for SB 868, and secured language that makes the plug‑in allowance temporary unless reauthorized. The utility stressed the need for clear certification and interconnection processes so customers and emergency personnel are protected during broader deployment of plug‑in panels.
How implementation and oversight would work
If AB 1813 becomes law, the Public Utilities Commission would be tasked with writing program rules and compensation rates. The PUC is the agency that sets the terms under which community solar projects get paid; those rules will determine project economics and which customers a program serves.
SB 868’s implementation hinges on product certification. Balcony or plug‑in panels would be allowed only after a nationally recognized testing laboratory, for example UL Solutions, certifies systems as safe for U.S. use. Separately, SB 913 would let batteries, electric vehicles and smart devices be bundled and counted as reliable grid resources, which backers say helps integrate more customer‑owned technologies into balancing operations.
| Bill | Focus | Status | Key condition |
|---|---|---|---|
| AB 1813 | Community solar program reform | Passed — on governor’s desk | Directs PUC to redesign program and compensation |
| SB 868 | Plug‑in ('balcony') solar legalization | Passed — on governor’s desk | Effective after certification by a nationally recognized testing lab; temporary provision requires reauthorization before 2030 |
| SB 913 | Counting bundled customer resources | Passed — on governor’s desk | Allows batteries/EVs/thermostats to be aggregated as grid resources |
How the measures could play out
The case for
- Greater access to solar for renters and multifamily residents if the PUC implements a program targeted at those customers.
- System savings from adding 5.4 GW of community solar with storage could lower generation, import and transmission costs by about $6.5 billion, according to supporters’ modelling.
- Legalizing certified plug‑in panels could let low‑income and mobility‑constrained households cut bills without costly rooftop installations.
The case against
- If the PUC sets compensation too low or structures programs poorly, developers may not build projects despite the law.
- The Public Advocates Office and utilities warn AB 1813 could shift roughly $1.5 billion a year in costs onto non‑participants, about $12 per month on average.
- Safety and interconnection rules could delay deployment of plug‑in panels until nationally recognized certification and clear procedures are in place.
What to be careful about
- A PUC rulemaking that assigns lower value to community solar could undermine project bankability even after AB 1813 is signed.
- Opposition and legal or administrative challenges from investor‑owned utilities could slow or narrow program design.
- Delays in product certification by a nationally recognized testing laboratory would postpone widespread use of balcony plug‑in systems.
- If program costs are allocated in ways the Public Advocates Office deems regressive, the Legislature or courts could require changes that reduce near‑term uptake.
The bottom line
The three measures that cleared the Legislature — AB 1813, SB 868 and SB 913 — together aim to widen who can produce and monetize distributed energy in California. Their ultimate impact will hinge on two implementation processes: safety certification for plug‑in panels and the Public Utilities Commission’s rulemaking on community solar compensation and customer eligibility. Supporters point to a modelling case for major system savings if the state adds 5.4 GW of community solar with storage, while utilities and the Public Advocates Office warn of potential cost shifts of about $1.5 billion a year. The governor’s decisions and subsequent PUC actions will determine whether the promised access and savings materialize.
What to watch
- Watch for Gov. Gavin Newsom’s signature or veto on AB 1813 and SB 868; no date has been set.
- Watch for a nationally recognized testing laboratory (for example UL Solutions) to publish U.S. safety certification for plug‑in balcony solar; no date has been set.
- Watch for the California Public Utilities Commission’s rulemaking under AB 1813 after the bill is transmitted to the agency; no date has been set.
Frequently asked questions
What do AB 1813 and SB 868 do?
AB 1813 directs the California Public Utilities Commission to redesign and compensate a stronger community solar program aimed at renters and others without rooftop access. SB 868 legalizes small plug‑in 'balcony' solar systems, subject to safety certification by a nationally recognized testing laboratory such as UL Solutions.
How much could community solar save the state?
Supporters cite modelling showing that adding 5.4 gigawatts of community solar paired with storage could reduce system costs by about $6.5 billion, primarily by lowering gas generation, imports and transmission needs.
Will these bills raise everyone’s electric bills?
The Public Advocates Office estimates AB 1813 could shift roughly $1.5 billion a year onto non‑participants — about $12 more per month on average — a point utilities and consumer advocates raised during debate. Whether that occurs depends on how the PUC allocates costs and sets compensation.
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