California Lawmakers Narrow AB 942, Targeting Solar Home Sales
California lawmakers have amended Assembly Bill 942, now requiring only sold or transferred homes to switch from legacy net metering to the less lucrative net billing tariff. The bill, introduced by Assemblymember Lisa Calderon, previously worked for utility Southern California Edison, and passed the State Assembly on June 28, 2023. Environmental justice groups and community organizations warn that this move could erode consumer confidence in clean energy technologies.
The original AB 942 sought to cut net-metering contracts from 20 years to 10 years for nearly 2 million homes with existing solar panels. However, the amended version has narrowed its scope. Critics argue that even this amended version could still lead to financial losses for sellers and buyers, as cutting the value of solar systems at the time of sale reduces their value. This could potentially force buyers to buy out leases, resulting in significant costs.
California's policy of changing contracts already in place has faced legal challenges before, notably in Nevada. The state's retroactive reduction of net-metering compensation sparked controversy and could serve as a precedent for potential challenges to AB 942. The solar industry, which has faced previous policy shifts, fears another significant blow if the bill proceeds as amended.
AB 942, if passed, will force households onto the net billing tariff, which pays roughly 75% less for solar power sent back to the grid. While the amended bill affects fewer homes than initially proposed, it still raises concerns about the financial implications for homeowners and the potential impact on the solar industry. The bill's future remains uncertain as lawmakers consider its implications.
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