(Sacramento, CA)— This past Wednesday, labor organizations and ratepayer advocates joined in support of a measure to alleviate the solar cost shift and reduce monthly electric bills. Assembly Bill 942 (AB 942) authored by Assemblymember Lisa Calderon (D-Whittier) passed the Assembly Committee on Utilities and Energy by a vote of 10-5.
As Californians experience electricity bill increases, AB 942 aims to minimize the cost shift on non-solar ratepayers from existing solar-panel subsidy programs. After recent amendments, the bill requires new owners of a property with rooftop solar to take service under the Net Billing Tariff and eliminates the California Climate Credit, ratepayers’ share of Cap and Trade proceeds for solar customers. In total, AB 942 will save Californians$423 million next year and $3.6 billion between now and 2043.
“Solar power is an important part of our state’s renewable energy grid, but we have to reevaluate how our current solar subsidy programs impact Californians who may not be able to afford solar-panel systems,” said Assemblymember Lisa Calderon. “Our energy bills are becoming increasingly unaffordable, and we must address this ratepayer inequity.”
Dating back almost three decades, the Net Energy Metering (NEM) program has provided subsidies to encourage the installation of solar panel systems. Unfortunately, over time these subsidies have created a significant shortfall of the electric grid maintenance costs. Non-solar customers’ energy bills cover this shortfall. The Public Advocates Office estimates that the cost shift from NEM to non-solar ratepayers rose 150%, from $3.4 billion in 2021 to $8.5 billion in 2024. Without modifications, the cost shift will continue to escalate as retail rates for electricity increase.
AB 942 is next set to be heard in the Assembly Committee on Appropriations.
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Contact: Jerika Edwards, Jerika.Edwards@asm.ca.gov