Bill to reduce California solar incentives advances with amendments

By Blanca Begert | 05/02/2025 06:07 AM EDT

The legislation has faced broad opposition from solar customers, the solar industry and environmentalists.

Workers install solar panels on the roof of a home.

The battle over rooftop solar credits carries on in California. Mel Evans/AP

A bill to slash payments for rooftop solar panels moved forward in the California Legislature on Wednesday, with amendments to soften the blow for the longest-term owners.

What happened: The Assembly Utilities and Energy Committee passed Assemblymember Lisa Calderon’s (D) AB 942, a bill aimed at addressing rising electricity bills by reducing payments to rooftop solar customers.

It would build on a previous move by state regulators to reduce the incentives, known as “net metering,” by cutting payments for customers who installed panels before 2023. The fight has pitted solar advocates against regulators, utilities, utility labor unions and ratepayer advocates who argue that incentives for rooftop panels come at the expense of nonsolar customers.

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The bill passed after Calderon agreed to take out the provision shortening the benefit period for homeowners who had installed solar from 20 to 10 years.

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