SAN DIEGO—A coalition of clean energy, consumer protection, and environmental groups are celebrating a preliminary injunction ruling today that will halt enforcement of a California rule that would severely restrict solar contractors from installing and servicing battery storage systems.
The rule, approved by the California Contractors State License Board (CSLB) in April, prohibits licensed solar contractors from adding batteries to existing solar panels or performing maintenance on batteries, including those they previously installed themselves. The rule also restricts solar contractors from building solar and storage systems above a certain size typical for off-grid homes or commercial customers. The rule was approved by the CSLB at the behest of the state’s investor owned utilities and their affiliated labor union despite the board’s own research finding zero safety issues or incidents across all residential batteries installed to date across the country, including 175,000 batteries in California alone.
In the preliminary injunction ruling the San Diego County Superior Court focused on CSLB’s failure to analyze the economic impact of its rule. With the preliminary injunction granted, the CSLB rule is now on hold while the trial proceeds.
“We are thankful the judge recognized the severe harm that would be done to small businesses, the loss of green jobs and how California’s progress in expanding local energy storage capacity would be slowed at a critical time,” said Bernadette Del Chiaro, executive director of CALSSA, one of the plaintiffs in the lawsuit.
The plaintiffs contended CSLB violated state law by failing to properly assess the economic and environmental impacts of the new rule. The plaintiffs argued it would cause immediate and irreparable harm by forcing hundreds of solar contractors to cut their workforces or close entirely, while harming consumers and undercutting the growth of renewable energy storage that is vital for grid reliability and meeting climate targets.
Clean energy and environmental advocacy plaintiffs asked the court to prevent the rule from taking effect on October 1, 2024 while their legal challenge proceeds. The preliminary injunction request was based on the fact that plaintiffs are likely to prevail on the merits of the case because the CSLB did not follow the Administrative Procedures Act or the California Environmental Quality Act in several important ways, including failing to consider alternatives or examine the economic impact on small businesses.
If the rule went forward it would cause irreparable harm in the form of loss of business, professional reputation, customer goodwill, employment, and the disruption of contracted warranties, according to the motion.
The motion further argued a preliminary injunction serves the public interest by promoting solar and battery installations which are crucial to expanding renewable energy storage in California to increase energy reliability in the face of wildfires and power shutoffs, and to combat global climate change.
With the rule change in place, there would simply be not enough certified electricians available to meet demand for new storage capacity, whereas licensed solar contractors are available and have installed and serviced storage systems for 40 years with a perfect safety record, according to the CSLB’s own research.
The CSLB rule was only the most recent attack on rooftop solar and storage in California.
“California keeps saying one thing but doing another when it comes to the fight against climate change,” said Del Chiaro. “In just the past two years, California slashed rooftop solar incentives, prohibited self-generation for schools and farms, and proposed expensive fixed charges that hurt energy conservation and local solar. This has to stop if we are to move forward as a state, keep energy prices low, and prevent future blackouts. Today’s ruling is a good first step, but there is more damage to undo before California can be a clean energy leader again.”