California is embroiled in a dispute over who can install battery systems for solar setups. A new ruling by the California Contractors State Licensing Board (CSLB) restricts battery installations to those with a C-10 electrical contractor license, excluding many C-46 solar contractors. This has sparked significant opposition from the solar industry and environmental groups, who argue that it will hurt small businesses and slow down clean energy progress.

The CSLB Decision

The CSLB, responsible for licensing construction contractors, revised its rules to limit battery installations to C-10 licensed electricians. This decision excludes about 450 C-46 solar contractors who have been installing batteries for years. The new rule, approved by the state Office of Administrative Law, is set to take effect later this year. Proponents of the decision argue it’s a safety measure, citing potential future risks, despite a 2022 UC Berkeley study finding no safety incidents with batteries installed by C-46 contractors.

Industry Response and Lawsuit

California’s solar industry and environmental justice groups have filed a lawsuit against the CSLB, claiming the decision fails to account for its economic impacts, especially on small solar businesses. They argue it will put hundreds of contractors out of business, slow battery installation rates, and undermine the state’s clean energy goals. Opponents also highlight that major utilities and electrical unions have been pushing for this rule to limit competition.

Implications for the Market

The CSLB’s decision comes at a challenging time for California’s solar market. The California Public Utilities Commission recently reduced compensation for rooftop solar, leading to a decline in new solar projects. Batteries have become more critical for maximizing solar power use, but the new rule could impede their installation. The decision also complicates warranty offerings for C-46 contractors, potentially weakening their market position.

Consumer and Worker Impact

The ruling is expected to create a backlog for consumers seeking battery installations, given the shortage of licensed electricians. It may also force experienced battery installers to undergo lengthy retraining, exacerbating the labor shortage. The economic consequences could be significant, with potential losses in solar projects and primary economic activity. Critics argue that the decision prioritizes utility interests over consumer protection and access to clean energy.

Conclusion

California’s new battery licensing rule has sparked a significant backlash from the solar industry, environmental groups, and consumers. The decision, framed as a safety measure, is seen by opponents as a move to limit competition and hinder the state’s clean energy progress. The outcome of the ongoing legal challenge will have major implications for California’s solar and battery market.