Last week, Assemblymember Chris Ward (D-San Diego) introduced AB 1260, legislation designed to strengthen and expand the initial framework for California’s community solar + storage program established by AB 2316. By ensuring fair compensation for community solar projects and creating a viable path for widespread adoption, AB 1260 would lower energy costs, provide clean energy access to millions of Californians and enhance grid reliability.
“California needs affordable, clean energy solutions today, not years down the road,” said Assemblymember Ward. “This bill will guarantee that families, renters and businesses — especially those unable to install rooftop solar — can benefit from local solar power, all while keeping energy costs low for every Californian.”
Fixing a broken process and moving forward
California has struggled for more than a decade to establish a functional community solar program, despite legislative efforts and widespread support from consumer advocates, environmental groups and housing stakeholders. The CPUC’s most recent program design fell short of the legislature’s intent, leaving only a handful of projects viable under current rules.
“This legislation makes clear what the legislature and the governor intended when AB 2316 passed nearly three years ago,” said Derek Chernow, Western Regional Director at the Coalition for Community Solar Access (CCSA). “By recognizing the full value that community solar + storage provides to the grid and local communities, we can finally create a workable, cost-saving program that expands access to millions of Californians.”
Prioritizing affordability for California ratepayers
California households and businesses have faced some of the highest electricity rates in the nation, a burden that continues to grow amid rising utility costs. AB 1260 directly addresses this issue by lowering costs for both participating customers and the broader grid. The bill requires community solar projects to deliver guaranteed bill savings to subscribers, with at least 51% of capacity dedicated to low-income customers. Additionally, by allowing community solar as a compliance option for the state’s solar-on-new-homes mandate, the bill is expected to save billions in construction costs while expanding access to clean energy.
“This bill, if passed, would lead to a community solar program that could unlock access to a cost-effective source of renewable energy for millions of Californians,” said Lauren Kubiak, Senior Scientist, California, Climate & Energy at National Resource Defense Council (NRDC).
Beyond direct bill savings, expanding community solar + storage accelerates the deployment of distributed energy resources (DERs), which help reduce overall electricity costs for all Californians. By generating power closer to where it’s needed, community solar reduces the need for costly transmission upgrades, improves grid reliability, and balances supply and demand during peak periods. The bill leverages private capital to modernize the distribution system, ensuring a more cost-effective and resilient energy infrastructure for the state.
Key provisions of AB 1260 include:
- Guaranteeing affordability by dedicating at least 51% of each project’s capacity to low-income customers, ensuring bill savings for those who need it most.
- Ensuring fair compensation for community solar + storage projects by directing the California Public Utilities Commission (CPUC) to align compensation policies with long-standing principles for distributed energy resources.
- Strengthening energy resilience by requiring utilities to treat community solar + storage like all other distribution-connected energy resources that provide local benefits.
- Expanding energy access by making community solar a functional compliance option for California’s solar-on-new-homes mandate, which will help reduce housing costs while meeting clean energy requirements.
- Creating good-paying union jobs by requiring prevailing wages for workers constructing these projects.
Building a stronger, more equitable energy future
With 19 states and the District of Columbia already benefiting from community solar programs, California has the opportunity to reclaim leadership in distributed clean energy. With support from more than a dozen local and national energy, housing, environmental justice and ratepayer advocate organizations, AB 1260 ensures that everyday Californians — not just those who can afford rooftop solar — can take part in the state’s clean energy transition while lowering their electricity bills.
“California’s bold clean energy policies require real solutions that work for everyone,” said Chris Ochoa, Senior Counsel at the California Building Industry Association (CBIA). “This bill finally gives homebuilders and property developers a practical way to meet the state’s solar mandate while reducing housing costs and delivering reliable, affordable energy.”
News item from CCSA
