The CPUC decision opens the door for more Californians—regardless of income, credit, or renter status—to get clean energy upgrades.
December 23, 2025
Sacramento, CA — In a major step toward making household clean energy upgrades more affordable and accessible, the California Public Utilities Commission (CPUC) has authorized Southern California Edison (SCE) to launch California’s first inclusive utility investment pilot from an electric utility. This will allow the utility to invest directly in clean energy upgrades at approximately 200 customer sites, recovering costs through a site-specific monthly charge that is less than the estimated savings from the upgrades.
It’s designed to help households lower energy bills, reduce pollution, and access modern energy technology—without large upfront costs, credit requirements, or homeownership.
“This decision is about fairness and affordability,” said Matt Flaherty, Director of Building Decarbonization at Clean Energy Works. “The goal is to ensure that clean energy solutions are available to everyone—not just those who can afford high upfront costs or to take on personal debt.”
How Inclusive Utility Investment Works
Under the pilot:
- Estimated bill savings must exceed costs—utilities only invest in upgrades at a home if they are estimated to save money.
- Upfront costs are significantly reduced, addressing a major barrier for many households.
- Renters can participate and benefit directly, a first for many clean energy upgrades.
- Strong consumer protections are built in, including oversight to ensure savings are real and lasting.
- Many technologies can be included—such as solar power and battery storage—which can help lower bills and potentially improve reliability during outages.
SCE is expected to finalize its pilot design and open applications within the next 18 months.
A Long-Sought Policy Breakthrough
This decision builds on nearly a decade of work by environmental justice and clean energy advocates. The effort began with the passage of SB 350 in 2015, which required the state to examine why low-income communities were being left out of clean energy programs.
State studies later confirmed what advocates had long known: barriers like high upfront costs, renter status, and credit score requirements were preventing millions of Californians from participating.
Since then, leading organizations including The Greenlining Institute and the Building Decarbonization Coalition identified inclusive utility investment as the most promising way to scale clean energy upgrades while advancing equity and affordability.
In response, the CPUC launched a formal rulemaking in 2020 to explore better financing options. Silicon Valley Clean Energy (SVCE) advanced inclusive utility investment as a leading solution that won the Commission’s sole endorsement. After years of public input, workshops, and collaboration among utilities, advocates, and regulators, the Commission has now approved this first-of-its-kind pilot for California.
Setting a Statewide Precedent
While the current decision applies to one utility, it establishes a policy precedent that could expand statewide. The CPUC’s approval signals that inclusive utility investment is a viable, scalable solution for meeting California’s climate goals while protecting consumers. The outcome and lessons learned from the pilot can expand access to similar upgrades for millions more Californians over the next five to ten years.
Looking Ahead
California’s clean energy transitions will only succeed if it works for everyone. By removing financial barriers and ensuring real savings, inclusive utility investment adds a powerful new tool to the state’s climate strategy—one that prioritizes affordability, equity, and shared benefits.
Many advocates helped make this milestone possible, including The Greenlining Institute, Green for All, Rewiring America, VEIC, and many others.
With this decision, California moves closer to energy transitions that lower costs, cut pollution, and leave no one behind.
To learn more about this decision, visit our blog post.
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