SACRAMENTO – The California Court of Appeal has dealt a major setback to rooftop solar, siding with the California Public Utilities Commission and the state’s three monopoly electric utilities in a closely watched case.
The March 9 ruling affirms the court’s prior decision that also backed the commission, or CPUC, and the power companies. That ruling upheld the CPUC’s policy that sharply scaled back the state’s rooftop solar incentive program, known as net energy metering, or NEM 3.
The following is a statement from Environmental Working Group Senior Vice President for California, Bernadette Del Chiaro:
We are extremely disappointed in the Court of Appeal’s decision on remand from the state Supreme Court. Instead of looking at this case with fresh eyes and doing the due diligence of reading and interpreting the statute, the Court of Appeal rushed to judgement, siding with the pro-utility CPUC and its utility allies.
We may have just set the clocks forward an hour but this decision sets California back a decade when it comes to building a clean energy future. It isn’t just Washington, D.C., setting us back on energy affordability and reliability. California is providing more than its fair share of unforced errors.
EWG, the Center for Biological Diversity and the Protect Our Communities Foundation appealed the original Court of Appeal ruling to the state Supreme Court.
In August 2025, the California Supreme Court sided with the groups, finding the lower court gave the CPUC too much deference. The groups argued in recent briefs that the CPUC policy violated state law, but the Court of Appeal has now reaffirmed its original decision.
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The Environmental Working Group (EWG) is a nonprofit, non-partisan organization that empowers people to live healthier lives in a healthier environment. Through research, advocacy and unique education tools, EWG drives consumer choice and civic action.
