CPUC Updates Existing Community Solar Programs and Finalizes Implementation Details of the Community Renewable Energy Program

June 11, 2026 -

SAN FRANCISCO – The California Public Utilities Commission (CPUC) today finalized key implementation details of the Community Renewable Energy (CRE) Program and updated its other existing community solar programs, which deliver bill savings to low-income customers and maintain strong protections for non-participating ratepayers.

Community solar allows customers, such as non-profits, businesses, renters, and those living in multifamily housing, to subscribe to a portion of a shared solar array, often located within their community, and receive a reduction on their electricity bills.

Today’s decision finalizes implementation details of the CRE Program and updates existing programs, including the Disadvantaged Communities Green Tariff (DAC-GT) and Green Tariff offerings. Together, these programs contribute to the ever-increasing portfolio of clean energy resources delivering on decarbonization goals for residential, commercial, and low-income customers across California.

“California remains committed to delivering on clean energy options for all customers,” said CPUC President John Reynolds. “Our decision makes sure that competitive community solar programs grow responsibly, balancing affordability, equity, and grid reliability.”

Key Provisions of Decision

Today’s decision establishes a more comprehensive framework for launching and managing the state’s community solar portfolio:

Cost Protection for Ratepayers: The CRE Program will be built on the CPUC’s existing Renewable Market Adjusting Tariff (ReMAT) pricing structure, ensuring that non-participating customers do not pay on their electricity bills for more than the avoided wholesale cost of the electricity generated.
Program Launch Requirements: Investor-owned utilities must submit implementation and marketing plans for CPUC approval. Community choice aggregators may opt into the program by notifying the CPUC.
Updated Funding for Low-Income Programs: In response to recent legislative changes under Assembly Bill 1207, DAC-GT programs will transition to funding through Public Purpose Program surcharges beginning July 1, 2026.
Streamlined Oversight: The decision reduces administrative burden by simplifying reporting requirements and addressing cost recovery for legacy Green Tariff programs through existing regulatory proceedings.
Modernized Reporting: All program reporting will transition to quarterly data uploads on the CPUC’s public reporting platform, improving transparency and accessibility.

Through today’s decision, the CPUC reaffirms its commitment to delivering bill relief for underserved communities, while ensuring that all programs remain cost-effective and consistent with California law.

Background

The decision builds on requirements established by Assembly Bill 2316 (Ward, 2022) and a prior CPUC decision that directed the development of a new community solar framework and enhancements to existing programs. The CRE Program is designed to serve all customer classes while minimizing costs and leveraging external funding opportunities where available. However, in 2025, the U.S. Environmental Protection Agency rescinded $249 million in previously approved Solar for All grant funding intended to support California’s community solar efforts. The State of California and the CPUC are currently challenging that action in court.

Community Solar Success

Community solar is delivering clean energy and lowering costs for California customers that subscribe to projects. There are currently 1,200 community solar projects totaling 560 megawatts (MW) in operation across the state, with another 430 projects totaling 165 MW under construction. California’s community solar programs demonstrate that the state has a strong foundation, and a growing pipeline, to meet its clean energy and equity goals.

More Information