AB 942 Threatens California Solar Owners' Profitability
California Assembly Bill 942 (AB 942) is causing concern among solar panel owners. The bill, introduced by Assemblymember Lisa Calderon, could force households onto a less profitable net billing tariff, paying roughly 75% less for solar power sent back to the grid. It has passed the Assembly with strong Democrat support and is now in the Senate.
AB 942's original version aimed to reduce net-metering contracts from 20 years to 10 years for existing solar households. However, the amended version now requires only homes that are sold or transferred to move from legacy net metering to the less lucrative net billing tariff. This change has been made to address concerns about retroactively breaking contracts with millions of solar users.
The bill has been controversial due to its potential impact on consumers who've installed solar panels. The 20-year contract terms for legacy net-metering programs were set into law in 2013, with then-Gov. Jerry Brown protecting preexisting net-metered customers under those rules. Changing these contracts could lead to legal challenges, as seen in Nevada's 2015 net-metering policy shift. Nearly 100 California environmental justice and community organizations have warned against passing AB 942 due to potential impacts on consumer confidence in clean energy.
AB 942, currently in the Senate, could significantly impact California's rooftop solar sector. While the amended version aims to mitigate retroactive contract breaking, concerns remain about the bill's potential effects on consumer confidence and legal challenges. The outcome of this bill will shape the future of solar energy in the state.
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