California’s AB 942 Will Undermine Rooftop Solar – And Why That Matters

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California has lengthy been a trailblazer in clear power, with greater than two million properties powered by the solar. However a brand new proposal making its method by way of Sacramento, Meeting Invoice 942 (AB 942), may throw a wrench within the state’s rooftop photo voltaic success story, and photo voltaic advocates aren’t taking it calmly.

This invoice doesn’t simply tweak coverage, it basically modifications the deal that tens of 1000’s of photo voltaic clients thought that they had with the state. For a lot of, it’s a damaged promise — and one that would price them.

What’s AB 942?

AB 942launched by Assemblymember Lisa Calderon, would minimize the assured advantages of net energy metering (NEM) agreements from 20 years down to only 10. That’s a giant deal.

NEM agreements are what make rooftop photo voltaic financially viable for most householders. They make sure that photo voltaic clients get credited at retail charges for the surplus electrical energy they ship again to the grid. For anybody who went photo voltaic earlier than April 15, 2023, this 20-year time period was not simply implied — it was assured in state-backed contracts.

Now, beneath AB 942, not solely would these agreements get shortened, however additionally they wouldn’t carry over if the house is offered. Meaning if you happen to’ve bought photo voltaic and wish to promote your own home, the brand new purchaser could be pushed onto much less beneficiant phrases, making your photo voltaic funding method much less enticing.

What It Means For Photo voltaic Prospects

The monetary affect is actual. In response to current estimates, the typical photo voltaic buyer affected by this invoice may see their month-to-month utility payments rise by about $63. That provides as much as greater than $750 per yr. And for households who budgeted for photo voltaic primarily based on secure, predictable financial savings, that’s a significant monetary affect.

On the coronary heart of the difficulty is NEM 3.0, California’s new internet metering coverage for photo voltaic clients who signed up after April 2023. It slashed compensation for extra power by about 80%. It additionally brought about California rooftop photo voltaic installations to drop 80%, based on PV Magazine.

If AB 942 passes, older clients who signed up beneath NEM 1.0 or 2.0 could be compelled into this new system midway by way of their contracts. That is like altering the foundations of the sport in the midst of the match, and for 1000’s of households and small companies, it may throw years of economic planning out the window.

As reported by the San Francisco Chronicle,

Richard McCann, a advisor for the California Photo voltaic and Storage Affiliation, stated rooftop photo voltaic clients present almost 20% of energy throughout occasions of the yr when power demand peaks and wholesale electrical energy is due to this fact the costliest, reminiscent of scorching summertime days. He criticized the argument that photo voltaic advantages shift prices onto different clients. “Why are we trying to punish customers we asked to do a good deed?” McCann stated.

McCann is likely one of the co-authors of a current white paper, Rooftop Solar Reduces Costs for All Ratepayersand one other earlier than that, How Rooftop Solar Customers Benefit Other Ratepayers Financially to the Tune of $1.5 Billion, each of which assist to place the mislead the claims made by proponents of the invoice.

Belief, Contracts, & Precedents

AB 942 can also be stirring up severe authorized and moral issues, with opponents arguing that the invoice breaks a transparent promise made to photo voltaic adopters. When somebody indicators a contract with the state that ensures 20 years of particular phrases, these phrases shouldn’t be up for grabs 5 or ten years later.

Steve Campbell from Vote Solar issued an announcement concerning the proposed invoice, saying:

“AB 942 is a direct assault on California households who made long-term investments in photo voltaic with the promise of truthful, 20-year Web Power Metering agreements — ensures that had been clearly outlined within the state’s personal client safety paperwork.

“Changing the rules after the fact isn’t just unfair — it risks eroding public confidence in the integrity of California’s regulatory system. More than a million Californians signed contracts and state-issued guides in good faith, trusting that regulators would keep their word. Retroactively breaking those agreements would set a dangerous precedent for all consumer protections in California.”

“Instead of pulling the rug out from under existing solar customers, lawmakers and the California Public Utilities Commission (CPUC) should use the tools already at their disposal to lower bills and support low-income communities — like utility business model reformreasonable income-based fixed charges, and targeted use of the California Climate Credit to focus on low-wealth customers.”

The belief issue issues. California has relied closely on grassroots photo voltaic adoption to fulfill its local weather targets. If owners and companies begin second-guessing whether or not they can rely on the foundations staying put, it may put a chill on future photo voltaic investments.

Who Actually Advantages?

Supporters of AB 942 argue that the present system favors wealthier owners who can afford photo voltaic, leaving lower-income ratepayers to choose up extra of the tab for sustaining the grid. However right here’s the twist: photo voltaic advocates say the true cause utility payments are hovering isn’t due to photo voltaic clients — it’s actually due to runaway utility spending. In response to client and environmental watchdogs, utility infrastructure prices have ballooned by over 300% up to now 20 years, though power use has stayed flat.

So whereas AB 942 claims to be about equity, critics argue it’s actually a distraction — one which lets the massive utilities off the hook whereas penalizing clients who took motion to cut back their carbon footprint and electrical energy payments.

What About California’s Clear Power Targets?

California has some of the formidable clear power targets within the nation: 100% clear electrical energy by 2045. Rooftop photo voltaic performs an enormous function in that imaginative and prescient. But when AB 942 turns into regulation, it may discourage individuals from going photo voltaic, and even push some to disconnect their current methods.

At a time once we want extra clear power, not much less, that’s a step within the improper path.

AB 942 isn’t only a technical coverage change, it’s a sign. It tells Californians that even if you happen to comply with the foundations, spend money on clear expertise, and do the suitable factor for the planet, the foundations can nonetheless be rewritten. It’s a message that undermines belief, threatens financial savings, and dangers derailing California’s progress on local weather. The stakes couldn’t be increased — not only for photo voltaic clients, however for anybody who cares about the way forward for clear power.