“A tremendous victory for California families and businesses who invested in rooftop solar with the promise that their net metering agreements would remain intact”
CALIFORNIA—California Senate Energy, Utilities and Communications Committee has amended Assembly Bill 942 to maintain net metering agreements for solar consumers who sell their homes or properties. The amendments also removed discriminatory language that would deny cap-and-trade climate credits to solar consumers.
CALSSA Executive Director Brad Heavner released the following statement on amended AB 942.
Today the Senate Energy Committee, under the leadership of Chairman Josh Becker, sided with more than a million solar users over utility special interests and their profit motives.
Solar supporters in California extend our heartfelt thanks to the Senate Energy Committee and Chairman Becker for their leadership in amending AB 942 to protect the integrity of net metering contracts. This decision is a tremendous victory for California families and businesses who invested in rooftop solar with the state guarantee that their net metering agreements would remain intact—even if they sell their homes.
By ensuring that these contracts are honored, the Senate Energy Committee and Chairman Becker reinforced consumer trust, safeguarded clean energy investments, and sent a clear message that California stands by its commitments to climate action and energy innovation.
Thank you to Chairman Becker for listening to the voices of solar customers, environmental advocates, and community leaders across our state. He is amending this bill at the same time that he promotes legislation to encourage using networks of customer batteries to avoid costly expansion of the electric grid. Senator Becker is respecting past investments while focusing on a future of innovation and energy affordability.
AB 942, authored by a former utility executive, originally would have ended net metering agreements after ten years or when solar users sell or transfer their home or property. The ten year language was removed before the bill passed the Assembly.
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. Leading state and national environmental groups submitted a follow-up letter to the Senate Energy, Utilities and Communications Committee urging them to vote against AB 942 or amend it to remove the negative impacts on solar users. AB 942 was also opposed by the California Association of Realtors, the California Building Industry Association, and Los Angeles Business Council.
AB 942 backers claimed it was intended to lower energy rates, but it was actually designed to protect utility profits. The real reason electricity rates keep skyrocketing in California is out-of-control utility spending on questionable expansions of the electric grid. For-profit utilities get a lucrative guaranteed profit return on infrastructure spending, which provides an ongoing motive to keep spending more. Over the last 10 years utility spending increased at the same pace as utility rate hikes despite energy demand remaining steady during that time. By contrast, recent research shows that solar users saved all energy consumers $1.5 billion dollars in 2024 due to decreased load on the grid and other shared benefits. 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.