California Lawmakers Review Bill Affecting Solar Panel Customers' Net-Metering Agreements
California lawmakers are reviewing Assembly Bill 942 (AB 942), a proposed change to net-metering agreements that could affect solar panel customers. The bill, introduced by Assemblymember Lisa Calderon, initially sought to reduce contract terms but has since been amended.
AB 942 initially aimed to cut net-metering contracts from 20 years to 10 years for existing solar homes. This would have forced many households onto the less lucrative net billing tariff, paying 75% less for solar power sent back to the grid. Nearly 100 environmental justice and community organizations warned against passing the bill, citing potential damage to consumer confidence in clean energy.
The amended version of AB 942 now requires only homes that are sold or transferred to move from legacy net metering to net billing tariff. However, changing contracts already in place may face legal challenges, as seen in Nevada's 2015 net-metering dispute. California's 20-year contract terms for legacy net-metering programs were set into law in 2013, with then-Gov. Jerry Brown promising protection for preexisting customers.
The fate of AB 942 remains uncertain, with no available information on its current status or effective date. While the amended bill affects fewer customers, retroactively changing existing net-metering contracts could still lead to legal challenges and further harm the solar sector.
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