A controversial rooftop solar rulemaking decision has risen to the Supreme Court of California, with the state’s highest court granting review for a petition filed by the Center for Biological Diversity.

The case involves NEM 3.0, a rate structure that went into effect in April 2023. The California Public Utilities Commission (CPUC) approved a request by the state’s largest investor-owned utilities to cut compensation to customers that export excess solar generation to the grid, a process called net energy metering.

Net metering rates were rapidly cut by 80% under NEM 3.0. This change, combined with a high interest rate environment, has pushed the state’s robust rooftop solar industry off a cliff, damaging the return on investment for homeowners, and leading to more than 17,000 solar jobs lost, demand falling 80% post-implementation, and numerous companies filing for bankruptcy.

“The commission’s new rooftop solar policy enables the utilities’ self-interested attack on rooftop solar,” said Bill Powers, an energy expert with The Protect Our Communities Foundation. “The real problem is heedless pursuit of maximum profit by the utilities at the expense of reasonable rates and commonsense climate action.”