UPDATE November 17, 2023
The CPUC approved their decision on the implementation of the new prevailing wage law for commercial systems in AB 2143. The CPUC did not change its proposal from the original version released in August as detailed below. The triggering event for the law’s requirements will be the submittal of an interconnection application. If an application is submitted by December 31, 2023, the project does not need to comply with prevailing wage rules, even if construction happens after that date.
AB 2143 is now California law. All commercial and agricultural solar and/or energy storage projects that apply for interconnection after December 31, 2023 will be designated as public works regardless of system size. The law also applies to multifamily housing that has three or more stories and PV systems larger than 15 kW. Single family homes and modular homes are exempt.
The most significant impact of the law known to date is that projects will be subject to prevailing wage. Prevailing wage projects are an enormous benefit to solar workers and their families, and we support them! However, project prices are expected to increase. Our experienced team of project developers can help you estimate the impact on your project.
How do I avoid a price increase?
The proposed decision by the California Public Utilities Commission (CPUC) would exempt projects for which a successful interconnection application is submitted before January 1, 2024. The earliest date that the CPUC could vote in favor of their proposed decision is November 2, 2023. We base our advice on the opinions of experts who believe this exemption will be adopted by the CPUC. We’ll update this blog after the CPUC’s final decision.
The best chance you have to avoid a price increase on your project is to sign a Sun Light & Power contract by November 17, 2023. This will give our team time to prepare the required documents and submit a good faith interconnection application in the hope it will be accepted. To contact us, email our Commercial Specialist at info@sunlightandpower.com or fill out this Contact Form.
What else will AB 2143 require?
The short answer is that there is still a lot we don’t know about AB 2143. Public works projects usually have many requirements which include the use of apprentice labor, registration of projects with the Department of Industrial Relations (DIR), and public notice of the bidding process. Neither the CPUC nor the DIR have clarified whether additional new rules will apply. We know that contractors must submit certified payroll records to the CPUC every year on July 1st and December 31st. We don’t yet know what the DIR will require.
What if I’m just adding a battery or increasing my system size?
All battery storage projects and photovoltaic system size increases are subject to AB 2143.
Contact us now to have the best chance of avoiding a project price increase.
This blog post was updated on October 10, 2023 and November 17, 2023.
Mel Georgiades is a Sales & Marketing Assistant at Sun Light & Power.