BAKERSFIELD, Calif. (KERO) — Assembly Bill 942 proposes changes to California’s solar net energy metering rules that could affect how much homeowners are paid for excess solar energy and impact future home sales with solar panels.
- Assembly Bill 942 aims to update California’s net energy metering (NEM) rules to lower energy costs for non-solar customers.
- The bill protects existing solar customers on older plans, allowing them to keep their benefits for 20 years.
- New homeowners buying homes with solar panels may be moved to a less generous billing plan (NEM 3), reducing savings.
- Supporters say the bill balances costs among all customers, while critics fear it could reduce solar incentives and home values.
BROADCAST TRANSCRIPT:
While Kern County is sunny most of the year, some say solar panels are a must with the rising cost of energy. However, there's an assembly bill that could affect how much you're paid for the energy your solar panels are putting back into the grid.
Assembly Bill 942 seeks to lower energy costs for non-solar customers by updating California's net energy metering rules.
NEM lets solar owners earn credit for extra power sent to the grid, lowering their bills. However, some fear the bill could alter solar agreements when a home with solar panels is sold.
Assemblymember Calderon says her changes protect existing solar customers on older plans, who keep their full 20 years of benefits. “The only two parts of the bill left are one if you are a solar customer in IOU service territory's you would lose the once a year climate credit… and the other part of the bill is if you sell your home with solar the new owner will take possession of that, when they take possession of the home they will move to the most modern rate structure which is the net billing tariff that the PUC implemented in April of 2023.” She said.
Meanwhile, others say the bill could make solar less attractive to future buyers — since new owners wouldn’t get the same savings, it could hurt long-term value and incentive.
Dave Rosenfeld is and executive director with the Solar Rights Alliance, and he says, “The contract says that if you signed up for solar before April 15, 2023, if you signed up for solar before that the state's contract says that you can stay in that system you can stay on NEM 1 or NEM 2 for 20 years and that system can stay on NEM 1 and NEM 2 for 20 years even if the home is sold and what the amended bill does is it breaks the contract if the home is sold and forces that home onto NEM 3 when the buyer takes over.”
NEM 1 and 2 gave solar users near full credit for extra power. NEM 3, the newest plan, pays less — making solar savings smaller.
PG&E says they are supporters of AB 942, saying it takes a balanced approach to lowering energy costs for all customers. They say current solar subsidies shift grid costs onto non-solar users — averaging $200 to $400 more per year.
Statement PG&E:
“At PG&E, we continue to work every day to reduce our operating costs, more efficiently plan and perform our work and lower our financing costs. Because of these efforts, our residential electric customers are paying lower bills today than they were a year ago. We appreciate lawmakers’ thoughtful consideration of additional measures—including updates to rooftop solar subsidies--to further reduce energy bills for all customers.”
“ We asked if the proponents of the bill is this really actually going to lower utility bills for customers and the proponents of the bill couldn't answer that question.” Rosenfeld said.
While some parts of the bill remain controversial, the future of the legislation is still being shaped.
Assemblymember Calderon says they’re still working on AB 942, making changes to better address California’s solar energy needs.
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