From pv magazine USA
The California State Assembly’s Utilities and Energy Committee has voted 10-4 to pass an amended version of Assembly Bill 942, which seeks to cut compensation rates for existing rooftop solar customers that send electricity to the grid.
The bill requires homes with rooftop solar that are sold or transferred to be shifted off their net energy metering plans, reducing the expected bill savings from the system.
AB 942, as originally proposed, sought to sunset net energy metering (NEM) for homeowners who installed solar under the NEM 1.0 and 2.0 rate plans within a 10-year window. The bill would have forced customers onto NEM 3.0, which pays about 80% less for electricity sent to the grid, making solar investments less financially viable.
The amended bill removed the 10-year sunset for all customers but retained the requirement that sold or transferred homes be shifted onto NEM 3.0.
Brad Heavner, executive director of the California Solar and Storage Association (CALSSA), said the bill “breaks contractual promises with millions of solar users.”
An average rooftop solar customer would face an electricity bill increase of about $63 per month after selling or transferring their home, potentially complicating real estate transactions.
Heavner said the amended AB 942 would be “unworkable in practice, putting utilities in the position of verifying real estate transactions … Messing with home values and the transferability of property has long been considered a dangerous ‘third rail' for California politicians, and this interference is no different.”
Lisa Calderon, an assembly member, filed the bill. Calderon previously spent 25 years in government affairs and political compliance with Southern California Edison, one of the state's investor-owned utilities.
“AB 942 backers claim it is intended to lower energy rates, but it is actually designed to protect utility profits,” said Heavner. “The real reason electricity rates keep skyrocketing in California is out of control utility spending on transmission infrastructure.”
The California Public Utilities Commission reports that the state's three largest electric utilities – PG&E, SCE, and SDGE – have raised customer rates by 110%, 90%, and 82%, respectively, over the last decade. Despite relatively flat electricity usage, utilities' transmission and distribution spending has increased by 300%.
“For-profit utilities get a lucrative guaranteed profit return on infrastructure spending, which provides an ongoing motive to keep spending more,” said Heavner.
Rooftop solar was estimated to save all California ratepayers, including non-solar customers, $1.5 billion in 2024 alone. However, it competes directly with the profit model of the state’s largest investor-owned utilities, which has made it a target for regulatory criticism.
“In solar, California leads. If this bill makes it to [California Governor] Newsom’s desk, we expect other states will be emboldened to take similar actions,” said Fox Swim, senior solar industry researcher at Aurora Solar. “What we should really be doing is incentivizing residential solar plus storage for its environmental and reliability benefits.”
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$63/m isn’t even a rounding error for anyone with solar in California. What is the average selling price there these days? And most houses with solar are almost always going to be above that median price. So an absolute rounding error!
Before we got solar in 2023 our summer bills were $350-400 per month. factor in the recent increases and that rises 30% plus. With solar and a true up credit our summer months are at $ZERO. Where is $63 derived? We entered into a contract at great monetary expense and now our rights can be voted away? How about a refund for the ABSOLUTE lost ptofit when we sell and the new buyer only gets a $.05 credit to the contracted $.30 buybacks!?!?
Sorry Anton I thought I was doing a general post, not a reply. System won’t let me edit or delete
Couldn’t California be sued for breaking the contract on NEM 2 and 1 residents?! I can’t sell my house with the value of the solar included or transfer the house to my children. If this bill passes, it means my investment is worth much less, unless I don’t move for 19 years.
Not again. This theme is a reoccurring one in Ca. Sadly we damn near expect to be lied to and cheated it seems to happen so frequently. It’s hard when many of our leaders are proving to be dishonest crooks. They will burn us at the stake and not blink an eye. This is not a healthy relationship, rather abusive and corrupt. Be safe everyone.
Government for, of and by the people… serving corporate interests over the people’s, to absolutely no one’s surprise. And in California, of all states. What better example that both parties have sold the people out. How long are we going to tolerate this?
Sounds like Lisa Calderon , the author of AB 942 has a conflict. It doesn’t seem right that government can break a private contract. It’s very odd. Even absurd. The government promotes and incentivizes solar panel installation, then turns 180 and breaks the contracts. It’s schizophrenic at best.
The government and private utility cos are in bed together. All about $$$$$, so sad.
California never stands by its contractual agreements. They always write a new law to get out of them.
The most corrupt state in the country. I can’t wait to leave.
Corporate America is killing america
People’s lack of memory and critical thinking are killing Americans, i/e what happens if I do something
First they force me to install these thing by new building codes then screw me lol I’m leaving California what a joke can’t trust anything here
This reduction in solar reimbursement drivel was originally introduced a couple years ago, as a Robinhood measure; essentially stated that Wealthy HO’s are getting solar rebates, resulting in higher utility rates for less wealthy others. Such utter hogwash. It’s a myth and in contravention with the historical facts of the solar industry.
The net metering was initiated as the fundamental underpinning to induce residents to installing home solar. But
now, the state wants to backtrack on their prior commitment, in order to ensure utility CO’s get a healthier ROI, pure and simple; and in the process, effectively tax the preexisting owners of home solar systems.
I have solar and SCE is ripping is off left and right! My electricity should be free but they keep finding ways to manipulate the game to their favor. And of course the Public Utilities Commission keeps allowing it. Wonder who’s lining THEIR pockets! Doesn’t take much to figure that out. These politicians can’t believe anyone’s that stupid. They just don’t care because they think there’s nothing we can do about their corruption.
Or maybe we should tell them to modify the bill to pay themselves a percentage of the generated energy profit. The politicians and/or lobbyists are being paid by the utility companies. They aren’t bribed by solar energy savings…. Not yet, at least, write it in the plainest language possible so even a third grader sees the graft and corruption that is present in American governance.
We all bought solar to help keep our electric use down. What we don’t use you buy back. No we are being penalties for trying to do better for.
This is a joke. We paid to much for solar. But we did it to help make things better. Very sad.
What the state needs is two parties. Break up the monopoly of tax and spend amateur legislature.
And while we’re at it, stop giving away assets to foreigners out on a hike.
I would quit transferring my extra electricity produced to the grid immediately! I would either install batteries so I can use it later or I would discharge it. If they don’t want to pay me for it at the agreed upon rate (which is less than they can generate it for), I’m not giving it to them for peanuts.
Its corruption at its best. Follow the bank accounts and offshore accounts for money transfers and it will explain the voting process and how it favors the companies rather than the public. Happens every day … Esp in CA!
California has highest energy costs in country approaching 50 cents/kw-hr. Democratic politicians favor big corporations over citizens. Instead of subsidizing big solar farms and power companies, we need to incentive solar and storage, which greatly decrease transmission infrastructure, fires and outages. Overal its cheaper for everyone by about 10 percent because of power loss in transmission lines, this is a huge environmental and economic boost for state.
California politicians talk big about going electric cars, but they keep increasing costs to own them with new net metering laws and will never have infrastructure ie… charges for them.
California needs to liberalize its solar net metering and battery regulations, it needs to encourage plug in hybrids and electric that allow their batteries. Right now energy costs at night are extremely low in many cases 5 cents/kw hr, perfect for charging batteries. This helps power companies pay for their nightime generators, which we need to study why this is so cheap, and why daytime rates are higher, which seems to point to need for more solar.
I think the big corporation are either bamboozling our politician and regulatory groups or there is corruption going on at the cost to citizens and taxpayers. Studies show that 30% of us are not even paying our electric bill, so the rest of us subsidise that and the big power companies too.
Sounds like Lisa Couldron has sold yall out for profits from a place she use to work. You need to check her Financials and see what kind of kick back she is getting. Just another crooked politician. Sadly the world is full of them and that’s what is wrong with the United States.
Corporate greed has it killed the American dream of home ownership for generations.
My home has solar. If the governments kill solar and other environmental oil free powers they are killing the planet and their own families. It’s a shame people can not control their greed for the sake of a living planet. The only planet we call home.
Hahaha! That is California Gov. Laughing on our face. They break promises they intended to keep. I’m 3rd gen. California. My state is the most beautiful state in the lower 48s. Sadly I’m leaving the madness allowed to govern. I didn’t not vote for Newsom
We need to adopt the abundance mentality instead of fighting over scraps.
Take electrification seriously and invest in a radical expansion of electrical generation and storage capacity to the point that it is radically decentralized, more secure from weather and fires, and extremely cheap.
Instead we are letting the utility lobbyists divide and conquer.
You failed mention Newsome has received over $10 million from PG&E since he’s been governor. Also Newsome appointed all the California Utility Commissioners who allowed 7 PG&E rate hikes in one year. Also screwing the solar customers further in the process. Our ture-up used to be Zero $! We put a lot more to the grid then we use. Last year our true-up was $3k. PG&E has been given the right to steal from citizens, and our governor & his allies are getting kickbacks from our stolen money! I remember Newscum getting elected because he promised to end homelessness & take on PG&E. We’ll he lied and both have gotten 100 times worse! I hope Newscum ends up with a long stay on Alcatraz with his ante and the rest of his California Allies that are stealing from “WE THE PEOPLE!”
If the California state government wanted to create energy security, they could easily do so by incentivizing decentralized energy production rather than going in the opposite direction. Instead they want to keep the energy infrastructure insufficient so they can allow utilities to punish their customers for suing them by shutting off their power whenever the wind blows. All of these corrupt politicians and C-suite creatures at the utilities belong in prison. The corruption is pervasive.
They can buy my solar system back. I bought it only because of Net 2. This will be the biggest legal shite show ever.
California corruption! The people in government position who push this bill through and voted for it are corrupted by big electric company, and do not have the interest of the people of California but instead are in big electric companies pockets.
That is why nothing good comes out of Sacramento, with majority of politicians up for sale, only two that voted against this bill, really paints a picture of California future.
Doesn’t this make a case for a class action lawsuit against utilities?
It’s a conundrum. Utility transmission and distribution infrastructure is aging; in addition, transmission and distribution systems in the wildland urban interface, especially distribution wires which account for the largest portion of systems miles, need Wildfire risk mitigating upgrades that added to the increased expenditures.
It is the utility financial model and the guarantee of rate of return on capital expenditure that feeds the beast. Utilities have to upgrade its infrastructure…and they are only happy to do so.
Do not be upset. The same is happening in other countries too.
All I want to know is when do the class action lawsuits begin so I can sign-up.
California would be sued by the Federal government because the Federal government also provided ensentives to rebates to residents. You cannot change a contract to profit a private corporation unless all parties in the contract agree. Also goes against a lot of FHA and VA loan agreements. This will be taken to the Supreme Court.