Clean Energy, Consumer and Environmental Advocates File Preliminary Injunction to Block Controversial CSLB Ruling that would Slow Battery Installations, Hurt Green Jobs

A coalition of clean energy, consumer protection, and environmental groups filed a motion today seeking a preliminary injunction to halt enforcement of a new 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 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 100,000 batteries in California alone.

Clean energy supporters say the rule will severely harm small businesses, result in the loss of even more green jobs, and dramatically slow California's progress in expanding local energy storage capacity at a critical time.

"This misguided decision by the licensing board greatly limits who consumers can turn to for solar storage, without any real evidence of a safety issue," said Jenn Engstrom, state director of CALPIRG, one of the plaintiffs. "This red tape will delay services, increase costs for consumers, and make it harder for California to meet its clean energy goals."

The preliminary injunction motion, filed in San Diego County Superior Court, contends the CSLB violated state law by failing to properly assess the economic and environmental impacts of the new rule. The plaintiffs argue it will 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 are asking the court to prevent the rule from taking effect on October 1, 2024 while their legal challenge proceeds. The preliminary injunction rests 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 implementation is not put on hold, the rule will 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 argues 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 simply are 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.

"This licensing trick is straight from the utility playbook and will cause electricity rates to skyrocket while worsening the climate emergency," said Roger Lin, senior attorney at the Center for Biological Diversity. "People are dying from extreme heat and California desperately needs smart, resilient energy solutions. Instead, the board is propping up a brittle electricity grid that devastates critical habitats and promotes environmental injustice."

The CSLB rule is 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 Bernadette Del Chiaro, executive director of CALSSA. "In just the past year, California slashed rooftop solar incentives, prohibited self-generation for schools and farms, and proposed expensive fixed charges that hurt energy conservation and local solar. Now they are undermining California's emerging battery storage progress through severe workforce limitations. This has to stop if we are to move forward as a state, keep energy prices low, and prevent future blackouts."

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