The number of applications for installing residential solar panels has plummeted across California. According to a San Francisco Chronicle analysis, in the fourth quarter of 2023, about 24,400 total approved applications were received in the state, compared to 75,800 in 2022. That’s a drop of 68%.
The drastic decline is primarily attributed to a new rate structure for solar customers implemented in April 2023 by the California Public Utilities Commission. This policy reduced the compensation utilities pay homeowners for surplus solar power by approximately 75%, significantly altering the landscape for solar investments. "The economics declined so dramatically for solar overnight," said Joshua Buswell-Charkow, deputy director of the California Solar & Storage Association. "The market wasn’t ready."
The data includes counties served by major privately owned utilities—Pacific Gas and Electric Co., Southern California Edison, and San Diego Gas & Electric—representing most of the state but excluding areas like Sacramento, where community-owned public utilities operate.
Jeanine Cotter, co-founder of the San Francisco-based solar company Luminalt, described the policy as a "travesty for the environment." She emphasized that people would invest elsewhere without significant savings on electric bills.
San Francisco County saw the most significant application decrease, around 80%, with similar declines in counties like Ventura and Orange.
For more information, contact Sean Wallentine.