Solar energy advocates are warning that an effort by California lawmakers to address soaring electricity bills could slash benefits for the owners of rooftop solar panels and slow the industry’s growth.
The bill, AB 942, which would halve the contract length of legacy solar net metering contracts from 20 to 10 years, is set to come before a legislative committee Wednesday. Under the legislation, after the 10-year term ends, rooftop solar owners would shift to a less generous payment structure for the excess power they send back to the electric grid.
“Californians who played by the rules, invested their hard-earned money, and committed to contracts deserve to have those agreements respected and should not have the rug pulled out from under them retroactively,” said Stephanie Doyle, California state affairs director for the Solar Energy Industries Association.
The proposal was first floated by the California Public Utilities Commission in response to a request from Democratic Gov. Gavin Newsom to find ways to cut electricity prices. The commission said in a February report that legacy net metering contracts are costing non-solar customers an additional $8.5 billion a year, accounting for as much as 25 percent of their bills. That’s more than double the $3.4 billion estimate from 2021.
