A committee in the California State Assembly has passed a bill that could strip a solar project owner’s net-metering compensation when a property is transferred. The Assembly Appropriations Committee has passed Assembly Bill 942, drafted by Assemblymember Lisa Calderon (D), that in its latest iteration would sever an existing net-metering agreement with a utility if that property was sold to another party.
“The 20-year net metering terms, which every solar user signs, are attached to the solar system — not the property owner. Undermining these agreements when a home is sold or transferred strips away the value of solar investments for middle- and working-class Californians, while setting a dangerous precedent that California’s clean energy commitments cannot be trusted,” said Brad Heavner, executive director of the California Solar & Storage Association (CALSSA) in a press release.
Under current California utility language, solar projects are transferred to the new property owner within its existing net metering contract terms. AB 942 was amended earlier this month, removing language from a previous draft that would have reduced net metering compensation periods from 20 to 10 years. Through AB 942, if a property bearing solar is transferred to another owner, that net metering agreement would be updated to NEM 3.0, the current net billing tariff which drastically altered compensation for solar energy fed into the grid.
A coalition of more than 100 advocacy groups have petitioned for the removal of AB 942, and CALSSA is joined by several other state groups opposing the bill.
“The utility story that solar customers are all wealthy and save too much money is false. Solar is predominantly adopted by working class customers seeking to stabilize utility costs. Customers sign long term leases to achieve savings over time, and should not be thrown under the bus after having trusted what the state has until now called a ‘guarantee’ of consistent policy,” Heavner said.
After passing through the Assembly Appropriations Committee, the bill will appear again on the California State Assembly floor for further deliberation this coming Tuesday.
