Regulatory and utility incentive structures block distributed clean energy. CPUC policies, IOU rules, tariffs, and utility business incentives prioritize centralized infrastructure over distributed solutions, discouraging microgrids, community solar, CCAs, and third-party partnerships, slowing decentralized clean energy even when aligned with state goals.

• Illustrative Example: Existing frameworks restrict multi-meter and cross-parcel configurations, making community microgrid projects spanning multiple parcels or buildings effectively unviable under current rules.