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California Senate could preserve net metering terms in proposed bill

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July 14, 2025
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The California Senate Energy, Utilities and Communications Committee is expected to vote on the controversial Assembly Bill 942 on Tuesday July 15. According to a newly released committee analysis, AB 942 is expected to be amended to maintain net metering agreements for solar consumers who sell their homes or properties. The amendments are also expected to remove language that would deny cap-and-trade climate credits to solar customers.

“Solar supporters in California extend our heartfelt thanks to the Senate Energy Committee and Chairman [Josh] Becker for their leadership in amending AB 942 to protect the integrity of net metering contracts. This decision is a tremendous victory for California families and businesses who invested in rooftop solar with the state guarantee that their net metering agreements would remain intact — even if they sell their homes,” said Brad Heavner, executive director of CALSSA. “By ensuring that these contracts are honored, the Senate Energy Committee and Chairman Becker reinforced consumer trust, safeguarded clean energy investments, and sent a clear message that California stands by its commitments to climate action and energy innovation.”

AB 942, introduced by Assemblymember Lisa Calderon (D), a former utility executive, originally would have ended net metering agreements after 10 years or when solar users sell or transfer their home or property. The 10-year language was removed before the bill passed the Assembly.

A broad coalition of more than 100 environmental, climate, clean energy, consumer, economic justice and affordable housing advocates signed a letter calling on California legislators to reject AB 942. State and national environmental groups submitted a follow-up letter to the Senate Energy, Utilities and Communications Committee urging members to vote against AB 942 or amend it to remove the impacts on solar users. AB 942 was also opposed by the California Association of Realtors, the California Building Industry Association and Los Angeles Business Council.

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