A new proposal in the California legislature, AB 942, seeks to break nearly two million rooftop solar net metering contracts and shift existing customers onto a rate structure that would decrease credits on their electricity bills by roughly 80%. If passed, the proposal would increase a typical solar customer’s bill by $63 per month.
Over two million rooftop solar projects are installed in California on homes, schools, small businesses, and other rate paying customer sites. Californians invested tens of thousands of dollars or entered 20+ year contracts with the expectation that they would secure predictable, stable electricity rates for the next two decades or more.
This predictable cost for electricity amid steadily increasing utility-provided electricity rates was made possible by net energy metering (NEM), which enables customers to export excess daytime production to the local grid in exchange for credit on their electricity bills.
“AB 942 is a direct attack on California families who made long-term investments in solar with the promise of fair, 20-year Net Energy Metering agreements—guarantees that were clearly outlined in the state’s own consumer protection documents,” said Steve Campbell, Western Regional Director, Vote Solar.
In April 2023, California moved its NEM structure to a net billing tariff, also known as NEM 3.0. The new rate structure cuts the rate credited to new solar customers by roughly 80%. The California rooftop solar market subsequently crashed as the return on investment for installing a project was heavily damaged.
The shift to NEM 3.0 cut the average export rate in California from $0.30 per kWh to $0.08 per kWh. Now, AB 942 proposes to force existing solar customers onto the unfavorable NEM 3.0 rates.
An average home uses 870 kWh of electricity per month. Solar customers typically export 20% to 40% of their production to the grid. This means with the average net metering rate decrease and assuming a 30% export of production, solar customers would have their monthly bills increase by $63 under the proposed bill.
The bill requires that starting July 1, 2026, an eligible customer-generator that has taken service pursuant to NEM 1.0 or 2.0 for 10 or more years is no longer entitled to take service under that contract or tariff. The bill would then require that existing customers are shifted onto the NEM 3.0 tariff.
“More than a million Californians signed contracts and state-issued guides in good faith, trusting that regulators would keep their word,” said Campbell. “Retroactively breaking those agreements would set a dangerous precedent for all consumer protections in California.”
The bill was filed by Assemblymember Lisa Calderon. Calderon had a 25-year tenure in a government affairs and political compliance role with one of the state’s investor-owned utilities, Southern California Edison.
Rooftop solar was studied to provide roughly $1.5 billion in savings to utility ratepayers, including non-solar customers, in 2024. But California’s utilities have made rooftop solar has the scapegoat for high electricity rates.
According to the California Public Utilities Commission (CPUC), 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, transmission and distribution spending by utilities has increased 300%.
A sign-on letter including nearly 100 organizations opposes AB 942.
“To address rising rates, California must focus on what’s really wrong with our energy system: uncontrolled utility spending and record utility profits,” the letter states. “A.B. 942 would increase rates, limit choice, derail the state’s clean energy progress, erode public trust in government, and avoid the hard work of actually reforming our state’s utility industry.”
(Read: “Six ways for California to lower electricity rates”)
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Just another money grab by utilities stealing the power generated by individual investors / owners of solar panel producers.
Solar Panel producers should form a countrywide coop and be able to charge the utility companies market rates for their use of the PV owners power generation.
A coop of PV owners generating power would form the largest producer of energy in the United States and give the owners leverage to put the utility companies back in their place and make them get their funds from their investors and control their profits rather than creating laws to steal it from the owners that built the PV investment in the US.
Sorry California residents, you need to purchase batteries now, and go zero feedback 100% solar during the day and use battery at night…
Just another good reason to move out of the state to a state which has a higher commitment to its citizens.
The only reason we signed up for Solar is because The Governor stated we MUST sign on to solar by a certain year!!
Wish we had never done it!!!
The solar company lied to us…. promising they would obtain all permits!
THEY DIDN’T!! They would handle all necessary procedures! THEY DIDN’T!!
The solar company left tiles off our roof
exposing us to leaks and interior ceiling problems!! They installed all equipment outside at the front of our home – which was against homeowners policies.
They refused to correct the problems
THEY created!!
The new solar company refused to accept responsibility for the OLD SOLAR COMPANY ……mistakes or omissions!!
We personally had to pay for these….and never have received reimbursement or credits!!
Don’t believe the Governor…and
DON’T. GET SOLAR!!!!!!!
Please reject AB 942 and the CPUC’s proposal to break 2 million rooftop solar customer contracts and urge them to focus on the real source of high rates: increased utility spending. AB 942 would increase rates, limit choice, derail the state’s clean energy progress, erode public trust in government, and avoid the hard work of actually reforming our state’s utility industry.
Of course the rates will increase because that’s the price we pay in California for doing the right thing. Our governor and his cronies always promise one thing then do another, and always at the taxpayers increased expense.
This is so unfair to those of us who thought we were helping by getting solar years ago and taking the risk of signing 20 year contracts. This bill should at least make arrangements for us to get out of our lease agreements if the bill passes as then we would have a choice to buy our own panels or go without. To leave us contracted is unfair if we loose the reason we signed up in the first place. I think if we filed a class action we would at least have legal representation.
PG&E is the most evil utility company in the country. They raise rates every year, beg for more money they don’t need for fixing things that are their responsibility, and now they want to cut solar credits so they can make even more money. THEY ARE MASSIVELY PROFITABLE, this is outright extortion.
lol
Never believe democrats in government about anything g to do with money. They will screw you as soon as it’s in their interest to do so.
This another arrogant attempt to void contracts of millions of Californian who believed they were doing the “right’ thing by investing in solar power. How do I sign anything to prevent this evil act from becoming a law? This shows the hypocrisy of the government and the Governor who are essentially giving the power companies more money and profit that they now receive. Please let know about any lawsuits which are filed.
The PUC is clearly corrupt even the governor of California called them out and told them to stop.
PG&E needs to be dismantled before the people come and tear them down ourselves. This is their warning…
Perhaps we should not give our net energy away for free and we take the system off grid and keep it all for our self.hmmm just a thought.
I’m sure Lisa Calderon doesn’t have any financial incentive to propose this legislation… 401k, stock options, etc… nah. Never.
Good information. I was planning on adding Solar to my home but I think I’m gonna wait to see how this pans out. I just don’t understand how Assemblymember Lisa Calderon who is connected to investor-owned utilities like Southern California Edison can can submit a Bill to increase her profits. I’m not the brightest bulb in the pack but isn’t that something like Insider Trading on steroids ?
Could there be a more blatant example of corruption than a 25-year veteran of SCE entering politics and then proposing to renege on legally-binding contracts for NEM 1.0 and 2.0 so that SCE can secure more years of record profits at the expense of all California ratepayers?!?
Why should people who have solar subsidize old and outdated business models of utilities? Might be time to end their subsidies from legislatures and end their quasi monopolistic structures based on legislation passed 100 years ago.
The PUC is not your friend. Elected officials are not your friends. Follow the money!
This is hilarious. It’s probably cutting in on their profits. They want to keep making money.
Really seems like a right thing just can’t ever get too close to actually being done. So many other knowledgeable “systems” people can easily explain and demonstrate a better way to go. And deciders always figure out another way to not do the right thing. What faction is continuously making money, by continuing to make this non-problem seem to be a one-answer real problem?
Thank you for the update.
Is this a joke?
If the utility company is going to force legacy solar customers onto this 3.0 platform, then we should have the power to disconnect 100% off the power grid. We should be able to break contracts as well.
Another reason to move out of California.
Insanity. They can loosen restrictions on natural gas to offset electrical costs a bit. Instead they go against the consumer who was apparently lulled by false promises.
Absolutely agree to my friends who commented here — these companies operate as monopolies with guaranteed profits, yet they constantly push rate hikes under the guise of ‘infrastructure upgrades’ or ‘climate resilience.’ Meanwhile, consumers who install solar, conserve energy, or reduce usage get slapped with fees and restrictions. It’s blatant profit protection. Public utilities should serve the public — not Wall Street shareholders.
What’s worse? Regulators often rubber-stamp these rate hikes with minimal resistance, while executives walk away with seven-figure bonuses — all paid for by everyday families who are told to ‘cut back’ during peak hours. Try to be energy-efficient? They find a way to bill you anyway. It’s a rigged game — and it’s time the state stepped in to ensure accountability, fairness, and affordability. Enough is enough!
We invested $20,000 dollars for dollar panels on our new build because the State required it, now they want to cancel all contracts! BS!
What an effing outrage and a joke the authors and supporters of this bill is. No faith in government or utility companies if this bill passes.
Sounds to me like a class action suite coming their way.
I believe these owners that spent a good portion of their savings and retirement funds are not going to sit still.
I agree. I’ll pay to join the lawsuit.
That world be the end of Newsom if it hasn’t happened yet.
Thank you Mr Ryan Kennedy for providing the public with this vital information regarding the negative impact the proposed bill AB942 would have on families who purchased solar panels. I am planning on purchasing solar panels for my home but now I don’t know if it’s worth the time and money with such bills being proposed to help make our electrical utility companies richer. Please keep up the excellent reporting on this issues to help educate our public about such bad proposals.
SCE put Calderon in office for this purpose. Hopefully the bill will die. Should it pass, there will be lots of unhappy PV users and PV contractors out for revenge. It would not go well for SCE or Calderon.
Good article but you forgot to mention a few things.
The credit accrued each month is only applied to any energy purchased and is not the real monetary value at true up.
Under nem 2.0 (my plan) we were refunded 9 cents per kw/h accrued at true up, far from the monthly accrued value.
During times of exporting the electric company the really only pays 9 cents for each kw/h from me and charges roughly 50 cents on average to the purchasing customers.
That alone gives them a hefty profit on my energy that is exported and of course is something that isn’t discussed by any utility company.
It’s time for someone to delve deep into the real economics of solar and let all the customers see just how much money the utilities are already making on rooftop solar.
The assembly woman who came up bill should be in peach for not doing what people want only to advance her iself
Here we go again….afterbareley commissioning a huge rooftop system to cover the “above average useage”of our all electric home built in the 80s wich PGE failed to have listed as as a solar provider for the first several months of connected useage.our family was hit with a1000$ dollar bill for nite useages cleverly disguised Unger some acronym my brain has already repressed the title of to avoid total meltdown.i figured ok let them have their fun they already held back the tech. Since first leaked in the 70s until they could develop a way to profit from free energy that would thankfully put them out of business but now let’s take it to the next level as we continue to desensitized the American people of any normal fair or logical thiking.lets backstage them for no services rendered.what ,do the utilities companies think DMV needs competition?hey PUC,step up to the plate and do anything much?I’m David Crowell and you can quote me on that…feel free to post my email as well.
The whole sola panel deal by Ygrene was a rip off. I lost money and especially when I sold my house. I didn’t save one penny and it cost me thousands.
Those original NEM rates were too generous. Other ratepayers have been subsidizing those PV rates which are more than the cost of the energy that the utilities purchase from any other source. Those original customers have had their systems paid for many times over by now. The original NEM rates should have had a sunset date given how generous they were.
Those original NEM rates were too generous. Other ratepayers have been subsidizing those PV rates which are more than the cost of the energy that the utilities purchase from any other source. Those original customers have had their systems paid for many times over by now. The original NEM rates should have had a sunset date.
Too generous to whom?
The people who built solar arrays and hooked them up to the grid did so at their expense, obviating the need for utilities to spend money on new generation. Investor-owned utilities have neglected building out the grid in favour of short term profits for decades. And now those folks that put their money where their mouth is are being scapegoated and ripped off.
A law to break contracts. Those people have no shame.
They do have a Sunset date in the original agreement. 20 years.
I feel totally DUPED by the energy industry! I felt it was my duty to use clean energy and the fact my excess was exported back to the grid for a sum was a win/win situation. I’m living up to my agreement, the CUPC MUST LIVE UP TO ITS!
I never hear that the share holders pay for any up grades or repairs it’s always the ratepayers via increase rates every year!
Nothing new. People continue to support a party that continues to bankrupt the state at a phenomenal rate. CA GDP is 4.1 trillion which makes it the 5th largest in the world but they can’t seem to balance a check book and continues to make policies to make people miserable. With Kamala Harris eyeing the governor seat, with her history of failed policies they will continue to make CA as miserable as ever
It’s never enough for utility companies. God forbid they don’t get millions iat bonus time.
Consumers who try to escape over inflated utility bills and consumption, are still penalized.
Time to have the state take over all utility companies!
States take over all utility companies? That’s a major part of the problem. In California, the CPUC composed of politically appointed puppets controls(?) the utility companies. A beneficial synergy exists between the utilities and politicians at the expense of the consumer.
When is somebody going to stand up for the consumer against the electric utilities? Who seem to have the politicians in their back pockets, the politicians who push initiatives that give the power companies more control of our money and break contracts in which a large number of constituents signed up for when they went solar or wind should be ashamed and removed from office, the power companies penalized for breaking or help in rewriting laws that only benefit them . Sorry but they’re all hacks they have no consideration for their fellow human beings, and it will eventually cost them .
we seem to be plagued with leaders who lie cheat and steal them smile in our face. How can anything thrive when the diseased fabric of this state and country just keeps spreading and getting stronger. “Everyone does it” How long until you join in on what everyone else does so you can survive the insurmountable costs that continue to rise daily. . My heart is heavy.
One more time that real science and the reality of business clashes with and proves the idiocies inherent in the ruling Democratic Party. True science driven by public demand and economic realities will lead to all sustainable progress. Political manipulation succeeds at nothing except enriching the politically connected at the cost to the public. Thanks to the reigning Democrats that have us on the precipice of the failure of this great nation. The cost to us all is going to be high and lengthy.
Please explain to me how the Govt can cancel a 20 year contract. Seems like an easy class action suit. Lack of trust in govt will only decrease.
This bill MUST be defeated and the sponsor sent back home.
California has the best democracy that money can buy… Including apparently Rep. Calderon.
Class action law suite incoming!
Horrible extortion
The problem with net metering is power companies are forced to buy power at high rates when they don’t need it. Offer that power to them when they do need it and they will gladly pay for it. Solar as great as it is drops off just when demand ramps up. Power produced during sunny days is practically worthless. Solar without storage is making things worse. It removes the burden from the rich who are able to afford it and places it on the poor who can’t afford it. There should be zero credits issued to exchange worthless power for valuable power. So store it right. Batteries oh that’s right Americans don’t want to produce anything in America. Or mine anything. Or have any high paying jobs. But I digress. There are other storage solutions out there. Gravity based solutions have promise but require capital investment. Who wants to invest in something that may not receive approval. There is wind turbines…. Not in my back yard. So what is the solution? I seriously don’t know. But I do know that what we are doing now is not working. President Trump as unorthodox as he is recognizes this also. And he has the Audacity to try something different. Is this the answer? Some of what he is doing is definitely a part of it, such as trying to remove environmental laws that are keeping us from mining key resources that our enemies control. Bringing American manufacturers back to America is also a great idea. Tariffs will not work for one simple reasons. We the people are not doing our part. Every news story against Trump, every protest Against making the government smaller and getting rid of waste. Is playing into our enemies hands, they know we will force trump to back down all they have to do is wait. Is trump perfect hell no he’s a hot mess. But he is the only one who has the courage to try and fix this country. It’s 4 years a very short amount of time. So why not start acting like Americans and support our President and his policies. If we do that our enemies would realize there defeat and we could be great again. So decide America do we want to run the world or shine Chinese shoes? If it doesn’t work at least we tried to stand up for ourselves
Just to be clear I don’t hate solar. I have installed a small off grid system at my mother’s house. I just wish I could afford a larger system. I also don’t support this bill trying to break contracts. The power companies are not looking out for our best interests. Off grid eliminates them from the loop. Storage needs lithium. The Chinese control most of the lithium being mined along with nearly every other element on the periodic table. The choices are clear America. Send a message to the world
As with any contract, this means that I can consider it null and void and I can stop paying my solar panel provider correct? Or re negotiate new terms right?
I strongly oppose AB942 . This is wrong for the state to renig on the existing contract that over 2 million consumers entered into in GOOD FAITH that it would be upheld for the entire 20yr contract.
This is bureaucratic bullying. This affects my personal household. I urge you to Kill this bill.
Kill it.
I find this quite interesting that now they want to go ahead and take away the agreement that was done in good faith and people who were trying to help provide power on the grid and trying to keep up good energy practices. Many people have spent good money on making the investment and utility companies have to be responsible for the actions that they do. Customer service has gone down and deteriorated with utility companies. When you try to reach them or contact service it can be very challenging. People will begin to not trust what goes on anymore and if consumer protections that have been installed in California this is the time where we need to make sure that those protections remain in place. California mandated that all new housing has to have solar installed on the property. But if you take away the incentives, what’s the purpose of even having solar program. We need common sense back in our government and support our citizens who came on board to support the program and made a difference. Green energy programs are great. And it’s the people who make the difference because they care about the environment. Quit punishing the consumers who tried to do the right thing. I have no confidence in what the utility companies do. They have brought that on themselves. Take accountability for your business and how you affect your customers. Because the consumers are going to push back. God bless America.
You should use your own generation, that has the highest value.
I sympathize with homes that bought more solar than they could use, but they’ve always been up against a superior enemy.
The homes putting in this solar NET metering should have realized it was a government TRICK!
There never should be net metering!
The utility industry only works when there is wholesale and retail exchange!
I just saw that the CPUC is proposing an additional tax of $8/ Kwh on solar producers.
California is killing it’s own push for solar from within. I kinda wish I didn’t just put $40k worth of solar on my house…
I installed solar panels and a storage battery at my house four years ago. I considered how long it would take to recover the costs of that installation. The deal made sense to me. It greatly reduced what I had to pay to PG&E for electricity, which is my return on investment. It also almost eliminated my vulnerability to frequent power failures by PG&E, which seem to occur about once per week. Most importantly for me, it reduced my personal impact on the environment.
Changing the financial benefits to consumers of the major investment that they made by tying up tens of thousands of dollars (or by incurring debe) is not only unfair to the individual consumer but it erodes consumers’ willingness to make such investments in the future. It unfairly transfers the benefits of those consumers’ investments in solar power to the share holders of private untilities. It represents more transfer of wealth from the many and to the wealthier few.
Private untilities have many possible ways to increase profits for their owners. Allowing their transmission equipment to age, fail, start fies, kill people, and burn down cities is one of them. Stealing the returns of small investors in solar power is just another form of corporate theft to benefit their owners. The private utilities in California need to look elsewhere than small solar power producers to make money. Try the old fashioned way – improve your buiness practices. And the elected government of California should not be an accomplice in this theft.
AB 942 breaks a commitment the state make with millions of solar owners. This is unbelievable and should be stopped!!
I was forced into NEM 3 due to my system being 20 years old. My average yearly true up was $2000 on NEM 2 (avg $166/mo) and now on NEM 3 I am a consistent $650/mo.
This is a scam. PG&E made 2.2 billion in net profit last year due to the last 8 rate increases.
Soon we will all turn off our systems so everyone will realize how much solar customers actually provide to the grid on a daily basis. They will have to buy emergency power from an outside party, and will see what it’s like to overpay for power.
Who are you paying that $600+ amount to each month PG&E or the outfit that sold you the Solar Panels & Installation in an installment plan?
~john
I oppose AB 942. I exported 2.5GWH last year.
We installed the system in 2023. We have not received the first check yet. PGE is greedy. Make it a state utility or vote for the other party to bring rices down
This is nothing more than a Bate and Switch tactic! The CPUC has already cost thousands of hard working Californians their jobs. The CPUC needs to remember who they work for and it’s not SCE, SDGE, or PG&E.
I oppose AB 942. I exported 4.7 MWh last year.
This Bill MUST be defeated!
As a retired senior citizen I installed solar panels out of my retirement savings to stabilize my monthly utility power expenses. I did not buy solar batteries in NEM2 since they need to he replaced in about 10 years and the environmental nightmare for their disposal. I am on a fixed income unlike the politicians who get funded by their donors
Just a thought.
Can residential solar owners file a class action lawsuit against the CPUC, against the lawmaker(s) supporting this bill, and the utilities themselves for funneling money by efforts to pursue such nonsense?
Teach them all to stop the rate increases and stop filling shareholders pockets with value, and to instead look out for the customers they serve. The utilities also get a percent back, guaranteed by their requested and approved spending, so they’re incentivized to spend more to get more back in rates. How about they just get less back as profit and run lean. They do their jobs and get paid a lot. They don’t need to even be providing shareholder value. Now that I’m writing this, maybe they should all be dismantled and reborn as public services or Munis (like SMUD where the rates are way way cheaper).
It continues to surprise me that the electorate keeps voting these people into office time and time again and then expect a different outcome. Time to vote for folks who keep their promises.
IOU profits will never go down since the CPUC makes sure they get their contractual annual profit growth. So electricity consumers will never pay less ever. What has the IOUs attacking rooftop solar is that it’s more and more evident that every time an electricity consumer stops paying the IOUs, they have to get their profits from those left.
Any investor owned business is only focused on returning profits to those investors so the electricity consumers aren’t “customers” they are like the host to the leach.
The public needs the option to purchase local infrastructure and self generate and IOU investors needs to start bailing out of the business of profiting from electrical infrastructure. It’s now like the roads and other essential services.
UTILITY COMPANIES RAISE RATES ON CUSTOMERS WHEN THEY WANT TO IMPROVE INFRASTUCTURE INSTEAD OF USING PROFITS, THEY ARE IN BED WITH POLITICIANS IN SACRAMENTO, THATS WHY WE NEED A CHANGE IN CALIFORNIA, I HOPE THE POLITICANS
DON’T SIDE WITH THE UTILITY COMPANIES.
If you look closely – it’s the bill who wrote this bill. -why?
what’s her relationship?
These are our legislators!!
Where do we start? Help
How do we stop this !!
I’ve exported 26k kilowatts into their grid since 2021. This bill is such a shafting to all California rooftop solar owners. How can they legally justify this???