ARTICLE
By Jenny Folkesson, Executive Director of SolarWAVE Action Electricity prices are on the rise in California, especially if you—like Santa Cruz County—are in PG&E’s service territory, where rate increases have outpaced both statewide and national trends. Looking specifically at commercial electricity prices, they have risen on average 19% nationwide and an astounding 53% in California nominally in the past 5 years, adding financial burdens to local businesses. Above: bundled system average rates for all customer sectors for PG&E, along with the average retail price for California and US in real 2024 US dollars. California is legally mandated to achieve 100 percent clean electricity by 2045, and meeting this goal depends in part on continued growth in customer-sited solar generation. In recent years, however, California’s solar market has faced significant challenges. The law AB 2143, effective January 1, 2024, subjected local businesses and owners of multi-family properties to highly complex and costly public works registration and compliance requirements whenever they sought to install solar systems on their own properties. These requirements created substantial administrative burdens and increased project costs, particularly for small and medium-sized businesses. Enacted in October of 2025 due to the local efforts of the Santa Cruz Chamber of Commerce, Estriatus Law and Scudder Solar working with Assemblymember Pellerin, AB 1104 removes this significant barrier to non-residential solar adoption by ensuring that local businesses—such as bakeries, animal shelters, and independent retailers—as well as owners of multi-family housing are not treated as public agencies undertaking large-scale construction projects when they invest in on-site solar energy. How does this benefit Santa Cruz County businesses? For the past 5 years, the median size of a commercial and industrial solar installation in the County is approximately 30 kW, with an estimated generation of approximately 45 MWh per year (data sources: DGStats and PVWatts). Consolidating electricity rates along with estimated rate increases, system degradation, and installation costs, a median sized commercial solar installation is projected to save approximately $600,000 per business in avoided electrical expenses over a 25 year lifespan, with an internal rate of return (IRR) of 21%. This is a sound investment for any business who not only wants to save money but also reduce their carbon footprint and dependence on potential further utility rate hikes. Additionally, we estimate that AB 1104 eliminates approximately $13,000 in average compliance costs per solar project by relieving businesses and multi-family property owners from public works registration, reporting, and oversight requirements, making solar installations less cumbersome and more affordable for small businesses. Lastly, AB 1104 protects businesses and multi-family property owners from losing NEM or NBT solar rates because of contractor labor law violations. Looking at Santa Cruz County as a whole, we estimate that 8–12 commercial and industrial solar projects were delayed or forgone in 2024 as a result of AB 2143, resulting in $170,000–230,000 in lost annual electricity savings for local businesses in just one year. If 8 to 12 businesses in Santa Cruz County delayed a solar installation by only one year, an estimated 2.6-4.0 metric tonnes of CO2e were emitted unnecessarily—emissions that could have been avoided through solar adoption. PG&E’s greenhouse gas emissions intensity of 16 lbs CO2e/MWh is significantly lower than the California utility average of 359 lbs CO2e /MWh, primarily because PG&E benefits from low-carbon generation sources such as nuclear power. However, the planned closure of the Diablo Canyon nuclear plant in 2030 will increase emissions unless renewable energy uptake accelerates. By enabling more businesses to go solar now, AB 1104 supports California’s legally mandated transition to 100% clean energy by 2045, reducing carbon emissions and advancing climate goals. Overall, AB 1104 (Pellerin) is of significant economic and environmental value to local businesses investing in commercial solar. It restores a balanced regulatory framework that protects workers while enabling businesses to invest in clean energy, reduce operating costs, and contribute to California’s legally mandated clean electricity transition. The coordinated advocacy of Scudder Solar, Estriatus Law, and the Santa Cruz Chamber of Commerce, alongside leadership from our local Assemblymember Gail Pellerin allowed for the successful adoption of AB 1104, which represents a critical policy step toward accelerating solar adoption, strengthening local businesses, and advancing Santa Cruz County’s and California’s climate goals. For a full AB 1104 economic and environmental impact report in Santa Cruz County, please contact: jenny@solarwaveaction.org SolarWAVE Action is a think tank advancing distributed solar ownership rights through data analysis, education and advocacy to support California’s clean energy independence.
By Jenny Folkesson, Executive Director of SolarWAVE Action
Electricity prices are on the rise in California, especially if you—like Santa Cruz County—are in PG&E’s service territory, where rate increases have outpaced both statewide and national trends. Looking specifically at commercial electricity prices, they have risen on average 19% nationwide and an astounding 53% in California nominally in the past 5 years, adding financial burdens to local businesses.
Above: bundled system average rates for all customer sectors for PG&E, along with the average retail price for California and US in real 2024 US dollars.
California is legally mandated to achieve 100 percent clean electricity by 2045, and meeting this goal depends in part on continued growth in customer-sited solar generation. In recent years, however, California’s solar market has faced significant challenges. The law AB 2143, effective January 1, 2024, subjected local businesses and owners of multi-family properties to highly complex and costly public works registration and compliance requirements whenever they sought to install solar systems on their own properties. These requirements created substantial administrative burdens and increased project costs, particularly for small and medium-sized businesses.
Enacted in October of 2025 due to the local efforts of the Santa Cruz Chamber of Commerce, Estriatus Law and Scudder Solar working with Assemblymember Pellerin, AB 1104 removes this significant barrier to non-residential solar adoption by ensuring that local businesses—such as bakeries, animal shelters, and independent retailers—as well as owners of multi-family housing are not treated as public agencies undertaking large-scale construction projects when they invest in on-site solar energy.
How does this benefit Santa Cruz County businesses? For the past 5 years, the median size of a commercial and industrial solar installation in the County is approximately 30 kW, with an estimated generation of approximately 45 MWh per year (data sources: DGStats and PVWatts). Consolidating electricity rates along with estimated rate increases, system degradation, and installation costs, a median sized commercial solar installation is projected to save approximately $600,000 per business in avoided electrical expenses over a 25 year lifespan, with an internal rate of return (IRR) of 21%. This is a sound investment for any business who not only wants to save money but also reduce their carbon footprint and dependence on potential further utility rate hikes. Additionally, we estimate that AB 1104 eliminates approximately $13,000 in average compliance costs per solar project by relieving businesses and multi-family property owners from public works registration, reporting, and oversight requirements, making solar installations less cumbersome and more affordable for small businesses. Lastly, AB 1104 protects businesses and multi-family property owners from losing NEM or NBT solar rates because of contractor labor law violations.
Looking at Santa Cruz County as a whole, we estimate that 8–12 commercial and industrial solar projects were delayed or forgone in 2024 as a result of AB 2143, resulting in $170,000–230,000 in lost annual electricity savings for local businesses in just one year. If 8 to 12 businesses in Santa Cruz County delayed a solar installation by only one year, an estimated 2.6-4.0 metric tonnes of CO2e were emitted unnecessarily—emissions that could have been avoided through solar adoption. PG&E’s greenhouse gas emissions intensity of 16 lbs CO2e/MWh is significantly lower than the California utility average of 359 lbs CO2e /MWh, primarily because PG&E benefits from low-carbon generation sources such as nuclear power. However, the planned closure of the Diablo Canyon nuclear plant in 2030 will increase emissions unless renewable energy uptake accelerates. By enabling more businesses to go solar now, AB 1104 supports California’s legally mandated transition to 100% clean energy by 2045, reducing carbon emissions and advancing climate goals.
Overall, AB 1104 (Pellerin) is of significant economic and environmental value to local businesses investing in commercial solar. It restores a balanced regulatory framework that protects workers while enabling businesses to invest in clean energy, reduce operating costs, and contribute to California’s legally mandated clean electricity transition.
The coordinated advocacy of Scudder Solar, Estriatus Law, and the Santa Cruz Chamber of Commerce, alongside leadership from our local Assemblymember Gail Pellerin allowed for the successful adoption of AB 1104, which represents a critical policy step toward accelerating solar adoption, strengthening local businesses, and advancing Santa Cruz County’s and California’s climate goals.
For a full AB 1104 economic and environmental impact report in Santa Cruz County, please contact: jenny@solarwaveaction.org
SolarWAVE Action is a think tank advancing distributed solar ownership rights through data analysis, education and advocacy to support California’s clean energy independence.