CSLB’s Impact on Solar Installers C46 and C10

In a significant shift for the renewable energy industry, the California Contractors State License Board (CSLB) has recently updated its regulations in the Spring of 2024 stipulating that only C10 license holders can install solar and battery systems. This change, which affects a large portion of the solar market has far-reaching implications for contractors, homeowners, and the broader push toward renewable energy adoption in California.

Only C10 License Holders Can Install Solar + Battery Systems

Their decision to now only allow C10 license holders to install batteries has now gotten more details into what this means and what services C46 solar companies can provide for their customers.

Who is the CSLB?

The CSLB, is part of the California Department of Consumer affairs. It is a government entity that licenses and regulates contractors. They are responsible for regulating contractors and ensuring the safety and standards of construction work in California. They consistently make updates in an effort to protect consumers, constantly revising its licensing requirements.

What does the CSLB Ruling Mean?

Previously, contractors with a C46 Solar Contractor license could install solar energy systems and related energy storage systems. However, the CSLB issued a revision that bars some of the state’s solar installers, holders of C46 License Holders— from being allowed to install or warranty battery systems. The new rule has been approved by the state Office of Administrative Law and is set to go into effect later this year.

However, the new regulation mandates that only contractors with a C10 Electrical Contractor license can legally install these systems.

This decision arises from concerns about the complexity and safety of integrating solar PV systems with battery storage. Battery systems, particularly those that store significant amounts of electricity, pose unique risks that require specialized knowledge and expertise in electrical systems.

The Contractors State Licensing Board (CSLB) has also added additional requirements and has proposes prohibiting licensed solar contractors from doing the following:

• Adding a smart battery to a solar system they have already installed.
• Making repairs or modifications to an existing solar and battery system they already installed.
• Installing a battery larger than 80 kWh

Only certified electricians, C10 license holders would be allowed to do the work prohibited above.

Implications for C46 Solar Contractors

The update has a profound impact on solar contractors who previously operated under a C46 license. Here are some key considerations:

1. License Upgrades and Additional Training

Many solar contractors will now need to pursue a C10 license to continue offering comprehensive solar and battery installation services. Obtaining a C10 license requires passing a rigorous exam that covers a broader range of electrical knowledge than the C46 exam. Contractors will need to invest time and resources into additional training and education to meet these new standards.

2. Operational Adjustments

Contractors without a C10 license may need to reconsider their business models. They might choose to partner with C10 licensed electrical contractors or hire licensed electricians to handle the electrical aspects of installations. This can lead to changes in project workflows, increased costs, and potential delays.

3. Market Competition

The new regulation may also affect competition within the industry. C10 licensed contractors might find themselves in higher demand, potentially allowing them to command premium prices for their services. Conversely, C46 licensed contractors could face a decrease in business unless they adapt quickly.

Impact to Homeowners and Existing Solar Customers

For homeowners and other solar customers, the CSLB’s update to restrict smart batteries to only be installed by C10 license holders brings both challenges and benefits:

1. Increased Quality and Safety Assurance

The primary benefit of this regulatory change is enhanced safety. By ensuring that only highly qualified C10 licensed contractors handle the installation of solar and battery systems, the CSLB aims to reduce the risk of electrical malfunctions, fires, and other hazards. Homeowners can have greater confidence in the safety and reliability of their renewable energy systems.

2. Potential Increase in Solar + Battery Costs

However, this increased safety might come at a cost. With fewer contractors qualified to perform installations, the supply and demand dynamic could drive prices up. Homeowners might face higher costs for solar and battery installations, potentially affecting the overall affordability of adopting renewable energy solutions.

3. Installation Delays

The transition period could potentially lead to delays in project timelines. Contractors needing to upgrade their licenses or form new partnerships may experience disruptions, causing longer wait times for system installations. Homeowners should plan for potential delays and consider scheduling installations well in advance.

CSLB's Broader Impact: California’s Renewable Energy Goals

California has always been at the forefront in renewable energy adoption. Their goal of moving towards fully electrical cars by 2050 is just one of the highlights of their ambitious targets for reducing greenhouse gas emissions and increasing the use of clean energy. The CSLB’s update must be viewed within this broader context. Ensuring that installations meet the highest safety standards is crucial as the state continues to expand its renewable energy infrastructure.

1. Maintaining Public Trust

Public trust in renewable energy solutions is essential for continued growth in the sector. Incidents of improperly installed systems can undermine confidence and slow adoption rates. By requiring C10 licensed contractors, the CSLB aims to uphold high standards and maintain public trust in solar and battery technologies.

2. Encouraging Skilled Workforce Development

The new regulation also highlights the importance of developing a skilled workforce capable of supporting California’s renewable energy ambitions. As the industry evolves, the demand for highly trained and knowledgeable professionals will only grow. This shift towards requiring C10 licenses underscores the need for ongoing education and training in the solar and electrical fields.

How Solar Contractors Can Adapt

Adapting to this regulatory change requires strategic planning and proactive measures by solar contractors. Here are some steps to consider:

1. Pursue a C10 License

For contractors who currently hold a C46 license, pursuing a C10 license is a critical step towards being able to install a backup battery to a solar energy system. This process involves preparing for and passing the C10 exam. The C10 exam covers a wide range of electrical principles and safety practices and can typically be finished within 3 hours. Investing in exam specific C10 materials, courses, and potentially even hiring a tutor can help ensure success.

2. Build Partnerships with a C10 License Holder

C46 License holders and other contractors who are not immediately able to obtain a C10 license can explore partnership opportunities with organizations like Forme Solar Electric. Collaborating with C10 licensed contractors or electricians can allow businesses to continue offering comprehensive services while maintaining compliance with the new regulations.

3. Clear Communication and Educate Customers

Clear communication with customers is vital during this transition period. Contractors should educate their clients about the new regulations, explaining how these changes enhance safety and reliability and various options. Transparency about potential cost increases and project timelines can help manage customer expectations and build trust.

4. Stay Informed

Staying informed about further regulatory updates and industry trends is essential. Joining industry associations, attending seminars, and participating in continuing education can help contractors stay ahead of changes and maintain their competitive edge.

Conclusion

The CSLB’s update requiring C10 licenses for solar and battery installations represents a significant shift in California’s renewable energy landscape. Energy systems are becoming more complex. With a solar battery a homeowner essentially has a power plant on their home. These additional considerations regarding the complications and severity While the transition presents challenges for contractors and homeowners, it ultimately aims to enhance safety, reliability, and public trust in solar energy solutions. By proactively adapting to these changes, contractors can continue to thrive in the evolving market, contributing to California’s renewable energy goals and promoting a sustainable future for all.