A proposed piece of legislation on the California State Assembly floor could alter the length and level of compensation solar project owners receive through net metering agreements.
California Assemblymember Lisa Calderon (D-56) introduced Assembly Bill No. 942 in February that, if enacted, would force legacy solar projects operating on previous net-metering programs to shift to a net-billing tariff, also known as NEM 3.0, after the systems have been in operation for 10 years. The two previous net-metering policies, NEM 1.0 and 2.0, gave eligible residential and commercial solar customers a 20-year period where they would be compensated by utilities for any extra electricity their arrays generated.
“Solar users, who are now mostly working and middle-class families, relied on a contract with the state when they spent or borrowed money to invest in solar,” said Brad Heavner, executive director of the California Solar & Storage Association, in a press statement. “They did so to save money for their families and help the planet, with the added benefit of reducing strain and demand on the energy grid.”
The California Public Utilities Commission passed NEM 3.0 in December 2022 and started the program in April 2023. The net billing tariff shifted from compensation based on retail energy prices to avoided costs, which has varying rates based on when that solar energy is exported. Following its passage, the California solar market has experienced record job losses, especially residential contractors, and industry organizations have cited NEM 3.0 as the cause.
Legacy solar projects were able to continue operating on previous net-metering programs for the agreed-upon 20-year term, but Bill 942 would reduce that to 10 years and move those projects to NEM 3.0. Additionally, the bill would prevent California’s Cap-and-Trade Program, which funds greenhouse gas emission reduction measures, from providing credits to solar customers.
“Rather than offer consumers actual solutions, utilities want to point fingers at their favorite scapegoat: rooftop solar,” Heavner said.
The bill was amended on March 25 and referred to the state assembly’s Committee on Utilities and Energy, awaiting further action.
Please finish the article with WHO to Call and THEIR phone numbers so we all have a call to action to stop this idiotic bill
Last year I was paid about 3.7 cents per kWh on excess energy and PG&E sold my kWh’s to my neighbors for about 30 cents or more. What a tip off.
This was all a big plot by the Leftwing Secular Religious Fanatics to do away with fossil fuel generated electricity. When your power company spends billions every year for solar and wind electricity and the production costs skyrocket they have to raise the rates. Someone has to pay for it and guess what, it is you and me. The politicians see the power companies as cash cows and again we are the ones paying for it. When you don’t have an electric bill and you are still using the service you are not paying for the service you are getting. They sold us all a free lunch when we bought our solar.
its about the climate and air quality if you we were actually paying any attention.
electric companies are a huge cause of wildfires in California and you begrudge homeowners who made sacrifices to install rooftop solar.
not only that but the electric companies are trying to game the system and screw those who invested in rooftop solar, from who they get excess, non-appropriately compensated electricity.
and you’re trying to place this blame on the climate-conscious solar adopters?
go back under your rock and stay there.