California Appeals Court Upholds Reduction in Residential Solar Compensation

California's 1st District Court of Appeal rendered its decision following a remand from the State Supreme Court, upholding the Net Billing Tariff framework — known as NEM 3.0 — and rejecting claims from organizations contesting the California Public Utilities Commission's (CPUC) rate policy. The decision perpetuates a 75 to 80 percent reduction in credits awarded to homeowners for solar electricity exported to the grid. This ruling solidifies the position of the state's three major private electricity utilities against the residential solar sector.