California Community Solar Rules Deal New Blow to Industry

California regulators dealt the struggling solar industry a fresh blow, adopting rules that renewable advocates warn will discourage smaller projects.

The rules decided Thursday come more than a year after the state most responsible for making solar power mainstream slashed incentives for residential systems, prompting rooftop installations to plunge.

The rules cover so-called “community solar” programs that allow renters and low-income households to participate in small-scale solar projects built on nearby vacant land or commercial rooftops. To encourage the spread of these projects, a coalition of California ratepayer advocates, environmental justice groups and unions put forward a proposal ...