California bill could slash rooftop solar credits

California bill would slash solar energy credits

California lawmakers are considering a bill that would cut some of the incentives to add roof top solar panels by slashing the credits homeowners and businesses get for generating their own solar energy.

SACRAMENTO - More than two million homeowners and businesses in California have rooftop solar panels. A new bill being considered in Sacramento could significantly reduce the credits they receive for the solar energy they generate.

Assembly Bill 942 would change long-standing agreements made with solar customers who installed panels before 2023. 

Under those agreements, solar panel owners receive credits on their utility bills for excess power sent back to the grid — credits that last for 20 years. 

The new proposal would reduce that period to 10 years and terminate the agreement if the homeowner moves.

The bill's author, Assemblymember Lisa Calderon, D-Whittier, argues the current arrangement is unfair to those who don’t have solar panels and spoke about how utility companies are losing money through the solar credit program.

"That amounted to $8.5 billion last year alone and is expected to increase in future years," Calderon said during a press conference.

But solar advocates and consumer groups say the bill is driven by utility company greed.

"Every electron the consumer makes at home is an electron the utility can't make money off of," said Dave Rosenfeld, executive director of the Solar Rights Alliance, a non-profit organization that represents California homeowners and businesses with solar power. "The utilities are a monopoly and their goal is to remain a monopoly. Ever since rooftop solar started, the utilities have tried to burn it to the ground."

According to Federal Election Commission records uncovered by the LA Times, Calderon previously worked for the lobbying arm of Southern California Edison before running for office in 2020.

Opposition to the bill includes several large school districts and the Alameda County Office of Education. 

That's because many schools have added solar panels to their buildings and parking lots in recent years, and reduced credits could significantly raise their energy costs.

AB 942 is scheduled to be heard by the Assembly's Committee on Utilities and Energy on April 30. 

Assemblyman Ash Kalra, D San Jose, is a member of the committee. 

Opponents of AB 942 are urging solar panel owners to contact their assembly members to voice their support or concerns. 

A link to the committee's member page with their emails can be found here.