“Breaking millions of contracts and fast-tracking controversial legislation is no way to build a sustainable energy future.”
CALIFORNIA—CALSSA executive director Brad Heavner released the statement below on the Assembly Appropriations Committee passing Assembly Bill 942 (Calderon), which would retroactively break net metering agreements with solar users when they sell or transfer their home. Of note, the Appropriations Committee took the unusual step of inaccurately claiming AB 942 has no fiscal impact, which allows the bill to bypass the usual process for passing legislation with budget impacts.
AB 942, authored by a former utility executive, would retroactively break contracts that were backed by the state and relied upon by families and businesses investing in clean energy.
The 20-year net metering terms, which every solar user signs, are attached to the solar system—not the property owner. Undermining these agreements when a home is sold or transferred strips away the value of solar investments for middle- and working-class Californians, while setting a dangerous precedent that California’s clean energy commitments cannot be trusted.
Rushing this bill through the legislative process only highlights how unpopular it is with the public. Californians deserve a transparent debate on proposals that would undermine property rights, reduce home values, and jeopardize the state’s clean energy future. Instead, AB 942’s backers are pushing it forward at an unusual pace, hoping to silence the voices of millions of solar users and concerned citizens.
The bill would also create chaos in real estate transactions, with utilities forced to police home sales and rental agreements, and would sow confusion for families dealing with divorce, death of a spouse, or changes in tenancy. This unworkable approach threatens to destabilize the housing market and penalize those who have invested in California’s clean energy leadership.
The utility story that solar customers are all wealthy and save too much money is false. Solar is predominantly adopted by working class customers seeking to stabilize utility costs. Customers sign long term leases to achieve savings over time, and should not be thrown under the bus after having trusted what the state has until now called a “guarantee” of consistent policy.
Despite claims that AB 942 will lower energy rates, the real driver of California’s soaring electricity costs is unchecked utility spending on transmission infrastructure—not solar customers. In fact, recent research shows that solar users saved all ratepayers $1.5 billion in 2024 alone by reducing strain on the grid.
Breaking millions of contracts and fast-tracking controversial legislation is no way to build a sustainable energy future. If lawmakers are serious about controlling energy costs, they should address the real problem: runaway utility spending.
A broad coalition of more than 100 environmental, climate, clean energy, consumer, economic justice and affordable housing advocates signed a letter calling on California legislators to reject AB 942. AB 942 is also opposed by the California Association of Realtors, the California Building Industry Association, and Los Angeles Business Council.
For more information on AB 942, please read CALSSA’s backgrounder.
For more information on the drivers of utility rate increases and how solar reduces costs for all energy consumers please read CALSSA’s recent report